CTC to In-Hand Calculator
Unpack your Cost to Company (CTC) package and find out your actual monthly take-home salary credited to your bank account.
Calculator Inputs
LiveHow to use the CTC to In-Hand Calculator
- 1Enter your annual Cost to Company (CTC).
- 2Adjust the basic salary percentage (default is 40% of CTC).
- 3Optionally add any custom monthly voluntary deductions.
- 4View the itemized breakdown of monthly gross salary, EPF, gratuity, and net in-hand pay.
How CTC to In-Hand is Calculated
CTC includes employer contributions that are not paid out monthly (Employer EPF, Gratuity provision). From the remaining Gross Salary, employee statutory deductions (Employee EPF, Professional Tax) are subtracted.
EPF is computed at 12% of basic salary, and Gratuity provision is approximately 4.81% of basic salary.
- 1Monthly CTC = ₹1,00,000
- 2Basic Salary = 40% of ₹1,00,000 = ₹40,000
- 3Employee PF (12%) = ₹4,800; Employer PF = ₹4,800
- 4Gratuity provision = ₹1,924; Professional Tax = ₹200
- 5Gross Salary = ₹1,00,000 - ₹4,800 - ₹1,924 = ₹93,276
- 6Net In-Hand = ₹93,276 - ₹4,800 - ₹200 = ₹88,276/month
Rules, Assumptions & Statutory Scope
- Uses 12% of basic salary for both employee and employer EPF in this estimate; actual coverage, wage ceilings, and employer allocation can differ.
- Uses an illustrative ₹200 monthly professional tax above the configured income threshold; professional tax varies by state.
- Income tax is not calculated by this tool.
What affects CTC to In-Hand results
- Basic salary allocation (a higher basic salary increases EPF deductions and retirement corpus, but lowers immediate monthly in-hand).
- State-specific professional tax rules.
- Income tax bracket and chosen tax regime (Old vs New).
Frequently Asked Questions
Why is in-hand salary significantly lower than monthly CTC?
CTC includes employer benefits such as retirement provisions (PF, gratuity), insurance premiums, and statutory taxes that are not paid as cash wages.
Can I opt out of Employee Provident Fund (EPF)?
Employees joining an organization with a basic salary above ₹15,000 per month can opt out at the start of employment if they have never contributed to EPFO before.
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