Free tool
Salary calculator: CTC to in-hand
Your monthly in-hand salary is your CTC minus the employer’s own costs (employer PF, gratuity and ESI), then minus your PF, ESI, professional tax and income tax. On a ₹12 lakh CTC with 50% basic pay in Karnataka under the new regime, that is about ₹91,395 a month.
In-hand salary, per month
₹91,395
₹10,96,740 a year
CTC per month₹1,00,000
Less employer PF−₹3,000
Less gratuity provision−₹2,405
Less employer ESI₹0
Gross salary₹94,595
Employee PF−₹3,000
Employee ESI₹0
Professional tax−₹200
Income tax (TDS)₹0
Estimates for general information, using rules checked 22 October 2026. Not tax or legal advice. Nothing you enter leaves your browser.
How do I calculate in-hand salary from CTC?
Start from CTC, take out what the employer pays that is not salary, then take out your own deductions. Here is a ₹12 lakh CTC with basic pay at 50%, PF on wages up to ₹25,000, gratuity inside CTC, Karnataka professional tax and the new tax regime.
| Step | Per month |
|---|---|
| CTC ÷ 12 | ₹1,00,000 |
| Less employer PF (12% of ₹25,000) | −₹3,000 |
| Less gratuity provision (4.81% of basic) | −₹2,405 |
| Gross salary | ₹94,595 |
| Less employee PF | −₹3,000 |
| Less professional tax | −₹200 |
| Less income tax (TDS), new regime | ₹0 |
| In-hand salary | ₹91,395 |
No income tax is due here: taxable income is ₹10,60,140 a year after the ₹75,000 standard deduction, within the ₹12 lakh limit for the new regime’s rebate. No ESI applies because gross pay is above ₹21,000 a month. Figures are rounded to the rupee.
What is take-home salary?
Take-home salary, in-hand salary and net pay are the same thing: what reaches your bank account each month. It is gross salary minus your PF, ESI if you are covered, professional tax and income tax deducted at source. Professional tax depends on the state: see professional tax by state.
CTC vs gross salary: what is the difference?
CTC is the company’s full yearly cost for you. Gross salary is what is left after the employer’s own costs come out: employer PF, the gratuity provision and employer ESI. In the example, that gap is ₹5,405 a month. Deductions from gross salary then give in-hand pay.
Why is my in-hand salary so much lower than CTC ÷ 12?
Because PF is counted twice in the gap: once as the employer’s share inside CTC and once as your own deduction. In the example, ₹6,000 a month goes to PF and pension in total. That money is still yours, in your PF account. Since 17 September 2026 the PF wage ceiling is ₹25,000, so in-hand pay is lower for anyone whose PF is worked out on the ceiling. See the PF calculator for the split.
Does the tax regime change my in-hand salary?
Yes. On the same ₹12 lakh CTC with no other deductions, in-hand pay is about ₹91,395 a month under the new regime and ₹80,430 under the old one. Compare both with your own deductions in the income tax calculator.
How it is worked out
CTC is everything the company spends on you. The calculator first takes out the parts you do not receive as salary: the employer's 12% PF contribution, a gratuity provision of 4.81% of basic pay if your CTC includes it, and the employer's 3.25% ESI if your gross pay is ₹21,000 a month or less. What is left is your gross salary.
From gross salary it deducts your own PF (12% of basic, on up to ₹25,000 a month unless your employer uses full basic pay), ESI at 0.75% if you are covered, professional tax for your state, and income tax for the year spread over 12 months. Under the old regime it counts your PF towards 80C and allows professional tax as a deduction; add other deductions in the income tax calculator.
Real payslips can differ. Employers may also pay PF admin and insurance charges out of CTC, include variable pay or bonus, or use a different salary structure.
Sources · checked 22 October 2026
- EPFO wage ceiling FAQs (S.O. 5109(E))
- KPMG: FAQs on the EPFO wage ceiling, 17 September 2026
- ESIC: coverage and the wage ceiling
- ESIC: contribution rates, periods and due dates
- ESIC: ESI (Central) Rules, 1950, rule 50 (wages above the ceiling during a contribution period)
- Maharashtra GST Department: profession tax rate schedules
- Taxscan: Gujarat revised professional tax rates from 1 April 2022
- Khaitan & Co: Maharashtra professional tax amendment 2023
- Karnataka Act No. 33 of 2025 (Karnataka Gazette, 15 April 2025), text on TaxGuru
- Khaitan & Co: Karnataka professional tax amendment 2023 (₹25,000 threshold)
- TeamLease RegTech: West Bengal Notification 1607-F.T., 16 September 2026
- DT Next: Chennai Corporation revises profession tax for the second half of 2024-25, 31 December 2024
- Indian Kanoon: Telangana Tax on Professions Act, 1987, First Schedule (substituted by Act 12 of 2013)
- Income Tax Department: Finance Bill 2026 memorandum (rates unchanged for tax year 2026-27)
- Income Tax Department: deductions allowable, including the standard deduction
- ClearTax: Section 156 rebate, Income-tax Act 2025
Questions
Frequently asked questions
Short answers, worked out with the same rules as the calculator above.
What is the in-hand salary for a CTC of ₹10 lakh?
About ₹75,129 a month, with basic pay at 50% of CTC, PF on wages up to ₹25,000, gratuity inside CTC, Karnataka professional tax and the new tax regime. Your structure, state and regime can move it either way.
What is the in-hand salary for a CTC of ₹5 lakh?
About ₹35,465 a month on the same assumptions. No income tax is due under the new regime at this level, so the gap from CTC is mostly PF, gratuity and professional tax.
Is take-home salary the same as in-hand salary?
Yes. Both mean the net pay that reaches your bank account each month, after PF, ESI, professional tax and income tax are deducted.
What is the difference between CTC and gross salary?
CTC is everything the company spends on you in a year. Gross salary is CTC minus the employer’s own costs, such as employer PF, gratuity and employer ESI. Deductions from gross salary then give your in-hand pay.
Does in-hand salary include bonus or variable pay?
Not here. The calculator treats CTC as fixed pay. If your CTC includes a target bonus or variable pay, take it out first, since it is paid only if earned and is taxed when paid.
Which tax regime gives more in-hand salary?
It depends on your deductions. On a ₹12 lakh CTC with no deductions beyond PF and professional tax, the new regime leaves about ₹91,395 a month and the old regime about ₹80,430. Large rent, investment or home loan claims can favour the old regime.