CTC to take-home salary calculator
Take-home salary is what remains of your CTC (Cost to Company) after employer costs inside it, PF (Provident Fund), gratuity provision and NPS (National Pension System), and after employee deductions: employee PF, ESI (Employees' State Insurance) where applicable, PT (Professional Tax) and TDS (Tax Deducted at Source). On a ₹12,00,000 CTC in Karnataka, new regime, that is ₹91,515 a month.
Your salary details
That is ₹12L a year.
Basic works out to ₹4,80,000 a year.
Defaults to 40% of basic. Edit it to match your offer letter.
Monthly in-hand
₹91,515
Annual in-hand
₹10,98,176
Where your CTC goes
Rupees for the year
Your CTC Cost to Company
₹12,00,000
Employer costs inside CTC Employer PF, gratuity provision and employer NPS
- ₹63,324
Employee PF Provident Fund
- ₹36,000
ESI Employees' State Insurance
₹0
PT Professional Tax
- ₹2,500
TDS Income tax
₹0
Take-home (in-hand) ₹91,515 a month
₹10,98,176
- Comes off at this step
- Still left after it
- Reaches your bank
You save ₹1,32,811 a year under the new regime compared to the old regime.
Full salary structure
| Component | Per month | Per year |
|---|---|---|
| Earnings | ||
| Basic salary | ₹40,000 | ₹4,80,000 |
| HRA | ₹16,000 | ₹1,92,000 |
| Special allowance | ₹38,723 | ₹4,64,676 |
| Variable pay | ₹0 | ₹0 |
| Bonus | ₹0 | ₹0 |
| Gross salary | ₹94,723 | ₹11,36,676 |
| Statutory base | ||
| Wages for PF, ESI and gratuity | ₹47,362 | ₹5,68,338 |
| Employer costs inside CTC | ||
| Employer PF | ₹3,000 | ₹36,000 |
| Gratuity provision | ₹2,277 | ₹27,324 |
| Employer NPS | ₹0 | ₹0 |
| Deductions | ||
| Employee PF | - ₹3,000 | - ₹36,000 |
| ESI | ₹0 | ₹0 |
| PT | - ₹208 | - ₹2,500 |
| TDS (income tax) | ₹0 | ₹0 |
| Take-home (in-hand) | ₹91,515 | ₹10,98,176 |
How we work out wages
3 legal ways to raise your take-home
- Restructure HRA and keep rent proofs. Rent receipts, and your landlord's PAN when annual rent crosses ₹1,00,000, unlock the HRA exemption under the old regime.
- Ask for employer NPS under section 124 (earlier 80CCD(2)). It is deductible in both regimes, so every rupee routed there escapes tax that a plain allowance would attract.
- Choose your regime on numbers, not habit. Run both above: with high rent and full section 123 (earlier 80C) investments the old regime can win; with few deductions the new regime usually pays more in hand.
How is in-hand salary calculated from CTC?
Start with gross salary: gross = CTC minus employer PF, minus the gratuity provision, minus any employer NPS contribution. These three sit inside your CTC but never reach your bank account, so they come off first.
PF, ESI and gratuity run on wages, as the Code on Social Security, 2020 defines them. We work them out the way EPFO and ESIC do in their own examples. Basic pay counts as wages. HRA, special allowance, variable pay and bonus stay out, unless together they come to more than half of your gross pay, in which case the excess is added back. So wages are never less than half of gross pay.
Then subtract the four employee deductions. Employee PF is 12% of wages, on wages of up to ₹25,000 a month. ESI is 0.75% of wages, but only when your wages are at or below ₹21,000a month. PT is a small state-level tax set by each state's slab table, typically ₹200 a month. TDS is your annual income tax under your chosen regime, spread across 12 months by your employer.
What remains is your in-hand salary. In one line: in-hand = CTC minus employer costs inside CTC minus employee PF minus ESI minus PT minus TDS.
Worked example: ₹12,00,000 CTC in Karnataka, new regime
Take a CTC of ₹12,00,000 with basic at 40%, so basic is ₹4,80,000 a year and HRA is ₹1,92,000. Basic is less than half of gross pay, so wages for PF, ESI and gratuity are half of gross: ₹5,68,338 a year. Inside the CTC sit employer PF of ₹36,000 and a gratuity provision of ₹27,324. Gross salary is therefore ₹12,00,000 minus ₹36,000 minus ₹27,324 = ₹11,36,676 a year, or ₹94,723 a month.
Deductions: employee PF of ₹36,000 a year, no ESI because wages are above ₹21,000 a month, Karnataka PT of ₹2,500 a year, and TDS of ₹0 under the new regime, because taxable income after the ₹75,000 standard deduction stays within the rebate limit under section 156 (earlier 87A).
In-hand: ₹11,36,676 minus ₹38,500 in deductions = ₹10,98,176 a year, which is ₹91,515 a month. The widget above starts on exactly these defaults, so you can verify every rupee.
The same ₹12,00,000 CTC, split three ways
Rupees for the year, on one bar.
- Take-home (in-hand)
- ₹10,98,176
- Deductions: employee PF, ESI, PT and TDS
- ₹38,500
- Employer costs inside CTC
- ₹63,324
In hand each month: ₹91,515
What each deduction actually is
Employee PF: 12% of wages
Your own contribution to the Provident Fund, deducted on wages up to ₹25,000 a month, the ceiling in force from 17 September 2026. Your employer matches it. Both halves earn interest and come back to you at withdrawal, so this is deferred pay, not lost pay.
ESI: 0.75% of wages, below the ceiling
Employees' State Insurance funds medical care and cash benefits. It applies only while wages are at or below ₹21,000 a month; the employer adds 3.25% on top of CTC.
PT: the state's slab, up to ₹2,500 a year
Professional Tax is levied by states, not the Centre. Karnataka charges ₹200 a month from a ₹25,000 salary, with ₹300 in February; Maharashtra does the same above ₹10,000; Delhi, Haryana and Uttar Pradesh levy none. The calculator applies your state's table automatically.
TDS: your income tax, paid monthly
Tax Deducted at Source under section 392 (earlier 192) is your projected annual income tax, in the regime you picked, divided across the year's payrolls. It is the only deduction you can legally shrink through regime choice, HRA proofs and employer NPS under section 124 (earlier 80CCD(2)).
And two amounts that never reach your account
Frequently asked questions
Is employer PF part of my CTC?
Usually yes. Most Indian offer letters include the employer's PF (Provident Fund) contribution, 12% of wages up to the wage ceiling of ₹25,000 a month, inside the CTC figure. It is your money, but it goes to your PF account, not your bank account, which is one reason in-hand is lower than CTC divided by 12.
Why did my in-hand salary fall after a hike?
A hike raises the deductions that move with pay: employee PF at 12% of wages until you reach the wage ceiling, and often TDS (Tax Deducted at Source) because the hike pushed you into a higher slab. Crossing a Professional Tax threshold or losing the rebate under section 156 (earlier 87A) can also make a small hike shrink your monthly credit.
Which tax regime gives a higher take-home?
For most salaried people with few deductions, the new regime wins: income up to ₹12,00,000 of taxable income is tax-free after the rebate under section 156 (earlier 87A) in FY 2026-27. The old regime can win if you pay high rent and claim HRA exemption, use the full ₹1,50,000 under section 123 (earlier 80C) and claim home loan interest. This calculator shows both side by side.
When does ESI apply to my salary?
ESI (Employees' State Insurance) applies when your wages are at or below ₹21,000 a month in a covered establishment. Wages here means the Code on Social Security definition, not gross pay. You contribute 0.75% of wages and your employer contributes 3.25%. Once your wages cross the ceiling at a contribution period boundary, ESI stops.
Is the gratuity provision in my CTC money I can spend?
No. The gratuity provision, about 4.81% of wages, is money your employer sets aside for the gratuity payable after 5 years of continuous service, or one year on a fixed-term contract. It is part of your cost to the company but never part of your monthly credit, and you forfeit it if you leave before qualifying.
Keep going with these
Income tax calculator
New and old regime side by side, with the slab-wise working and your unused savings headroom.
Gratuity calculator
The (15 ÷ 26) formula on wages, the service rules and the ₹20,00,000 ceiling.
HRA exemption calculator
The least-of-three rule, the proof checklist and the landlord PAN cutoff.
Payroll processing by True HR
The same engine, run for your whole company: salaries on the 1st, filings before due dates.
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