In-Hand Salary Calculator

Why take-home pay is lower than your CTC

Cost to company is the total your employer spends on you in a year, and several parts of it never reach your bank account. The employer's share of provident fund, gratuity provision, insurance premiums and sometimes meal cards or other benefits are included in CTC. On top of that, your own PF contribution, professional tax and income tax are deducted every month. The gap between CTC and in-hand pay often surprises people on their first job offer.

This calculator walks through that gap. It estimates basic pay as a share of CTC, removes the employer PF and gratuity, then deducts your PF, professional tax and income tax under the regime you choose. The result is a realistic monthly figure you can use for budgeting, comparing job offers, or planning an EMI.

A few settings change the outcome noticeably. If your PF is calculated on the full basic rather than the statutory wage ceiling, your PF deduction rises and your in-hand pay falls, though your retirement savings grow faster. A higher basic share increases PF and gratuity, while a lower one leaves more in allowances, some of which may be taxable. Professional tax varies by state and is zero in some. When comparing two offers, look at in-hand pay, employer PF and benefits together, not CTC alone, because one company's ₹12 lakh can feel very different from another's. Variable pay and joining bonuses are often included in CTC but paid later or only on targets, so leave those out when estimating your monthly budget.