Quick Example (Based on Defaults)
With a monthly CTC of Rs 60,000, basic salary at 40%, HRA at 40% of basic, PF at 12% for both employee and employer, and Rs 200 professional tax, the calculator estimates:
- Gross salary about Rs 57,252 per month
- Employee PF about Rs 2,748 per month
- Estimated take-home about Rs 54,304 per month
These are rounded values. Results will change when you update the inputs.
How to Use This Salary Calculator
- Choose monthly or annual inputs based on your offer letter.
- Enter CTC and set basic and HRA percentages to mirror your salary structure.
- Add professional tax and other recurring deductions from your payslip.
- Review the take-home summary and monthly salary breakdown.
CTC vs In-Hand Salary in India
CTC is the employer's total cost and typically includes employer PF. In-hand salary is the amount you receive after employee PF, professional tax, and other deductions. This calculator separates those components so you can see what actually reaches your bank account each month.
How the Calculator Converts CTC
The calculator first backs out the employer PF portion that is included in CTC. From the resulting gross salary, it splits the amount into basic, HRA, and special allowance based on your percentages. Finally, employee PF, professional tax, and other deductions are subtracted to give the take-home estimate.
Inputs that affect gross
CTC amount: The top-line annual or monthly package.
Employer PF rate: Impacts how much of CTC is not paid out as cash.
Inputs that affect take-home
Employee PF rate: A higher rate lowers take-home.
Professional tax and other deductions: Subtracted from gross salary.
Salary Components Explained
Core components
Basic salary: Base pay used for PF and other calculations.
HRA: Housing allowance, often set as a percentage of basic.
Special allowance: The remaining portion of gross salary.
Deductions and employer costs
Employee PF: Deducted from gross to arrive at take-home.
Employer PF: Included in CTC but not part of take-home pay.
Professional tax: State levy deducted from salary.
What Can Reduce Take-Home Salary
- Variable pay: If part of CTC is bonus-based, monthly in-hand will be lower.
- Insurance premiums: Group health or term insurance can be deducted monthly.
- Meal cards or reimbursements: These reduce cash-in-hand but add value.
- TDS: Income tax deductions are not included in this calculator.
Tips to Match Your Payslip
- Use the exact basic and HRA split from your offer letter.
- Check if your employer caps PF on a wage ceiling and adjust the PF percentage accordingly.
- Enter professional tax as per your state and month.
- Add insurance premiums and other deductions for a closer in-hand estimate.
Assumptions and Limits
- PF is calculated as a percentage of basic salary. Adjust the rates to match your policy.
- Professional tax varies by state, so enter the amount from your payslip.
- Income tax and TDS are not included in this estimate.
- If your salary includes extra benefits, include them under other deductions or adjust the percentages.
Related Calculators
For a full picture of your finances, pair this salary calculator with tools that cover tax and savings.
- Income Tax Calculator India: estimate annual tax and TDS.
- SIP Calculator: plan monthly investments from your in-hand salary.
- GST Calculator: verify tax on invoices if you run side projects or freelancing work.
Salary Calculator India FAQ
What is the difference between CTC and take-home salary?
CTC is the total cost to company and includes employer contributions like PF. Take-home salary is what you receive in your bank account after employee PF, professional tax, and other deductions.
Does this calculator include income tax?
No. This calculator focuses on salary structure and statutory deductions like PF and professional tax. For tax estimates, use the Income Tax Calculator India.
Does CTC include bonuses or gratuity?
Many offer letters include annual bonus, gratuity, or insurance in CTC. If those are part of your package but not paid monthly, your in-hand salary will be lower than the CTC split.
How is provident fund (PF) calculated here?
PF is calculated as a percentage of basic salary. You can adjust both employee and employer PF percentages in the inputs.
Why does my take-home change when I adjust basic salary?
PF is typically linked to basic pay. A higher basic increases PF deductions, which reduces take-home salary.
What should I enter as basic salary percentage?
Many companies set basic salary between 35% and 50% of gross. If you are unsure, keep the default 40% and adjust to match your payslip.
Why does professional tax change by state?
Professional tax is a state-level levy with different slabs. Enter the monthly or annual amount shown on your payslip for a closer estimate.
How can I include other deductions or benefits?
Use the Other deductions field for items like insurance, meal cards, or salary advances. This keeps the take-home estimate realistic.
How do I use annual CTC from an offer letter?
Switch the input period to annual and enter your CTC. The calculator will still show both annual and monthly results.
Why is my in-hand salary different from the calculator?
Differences usually come from company-specific policies like PF caps, variable pay payouts, insurance premiums, or TDS. Use your payslip to adjust the inputs for a closer match.