How is in-hand salary calculated?

In-hand salary equals gross salary minus employee PF, professional tax, and income tax TDS. Gross salary is your CTC minus the employer PF contribution and gratuity provision, which sit inside CTC but never reach your gross pay. Basic salary is usually 40-50 per cent of CTC, and HRA is typically 20-50 per cent of basic depending on company policy and city.

What is the difference between CTC and gross salary?

Gross salary is CTC minus the two employer-side costs that are part of your package but never appear in your payslip: employer PF contribution (12 per cent of basic) and gratuity provision (about 4.81 per cent of basic). Gross salary is what you actually earn before your own deductions; CTC is what the company spends on you in total.

What is the standard PF deduction?

Employee PF contribution is 12 per cent of basic salary, deducted from your pay. The employer also contributes 12 per cent of basic, split into 8.33 per cent towards EPS (Employee Pension Scheme, capped at Rs 1,250/month) and 3.67 per cent towards EPF. Employer PF is not deducted from your salary; it is an additional cost to the company that sits inside your CTC.

What is professional tax and how does it vary by state?

Professional tax is a state-level tax on salaried employees, capped at Rs 2,500 a year under the Constitution. Karnataka charges Rs 200/month above Rs 15,000 salary. Maharashtra charges Rs 175-300/month by slab. Tamil Nadu charges up to Rs 208/month. Delhi, Haryana, Rajasthan, and Uttar Pradesh do not levy professional tax at all.

What is the standard basic salary percentage of CTC?

Basic salary is typically 40-50 per cent of CTC. It is the base for calculating PF (12 per cent of basic), gratuity (about 4.81 per cent of basic), and HRA (usually 20-50 per cent of basic). A lower basic reduces employer PF cost but also reduces your retirement contributions and HRA exemption eligibility.

How is HRA exemption calculated?

HRA exemption under Section 10(13A), available only in the old regime, is the minimum of three amounts: the actual HRA received, actual rent paid minus 10 per cent of basic salary, or 50 per cent of basic (metro cities: Delhi, Mumbai, Kolkata, Chennai) or 40 per cent of basic (non-metro). Whichever of the three is smallest is the amount you can claim. Use the HRA Calculator above for an exact figure from your own numbers.

What deductions are made from my salary every month?

Three deductions are common: Employee Provident Fund at 12 per cent of basic salary, Professional Tax (Rs 0-300 a month depending on state), and Income Tax TDS based on your chosen regime and slab. Some employers also deduct group insurance premiums or voluntary scheme contributions.

What is the salary structure in India?

A typical structure includes Basic Salary (40-50 per cent of CTC), House Rent Allowance, Special Allowance (the balancing figure), Employer PF (12 per cent of basic, inside CTC), and Gratuity provision (about 4.81 per cent of basic, inside CTC). Performance bonus, conveyance, and leave travel allowance are common additions depending on the employer.

How does gratuity affect my in-hand salary?

Gratuity does not reduce your monthly in-hand pay directly. It is an employer cost, calculated at roughly 4.81 per cent of basic salary (15 days of basic per year of service, divided by 26 working days), and paid as a lump sum when you leave after 5 years of continuous service. Because it is provisioned inside CTC, it does reduce the gross salary that would otherwise be available to you each month.

Can NRI employees use this in-hand salary calculator?

Yes. The currency selector converts every amount to USD, EUR, GBP, and other currencies. Enter your Indian CTC in rupees and view the breakdown in your preferred currency. PF and income tax rules apply based on where the income is earned, regardless of your residency status.

What does CTC mean in salary?

CTC stands for Cost to Company: the total annual amount an employer spends to employ you, including basic salary, HRA, allowances, employer PF (12 per cent of basic), gratuity provision (about 4.81 per cent of basic), and other benefits. CTC always exceeds in-hand salary because it includes employer-side costs you never receive directly. Most Indian offer letters quote CTC, not take-home pay.

Which tax regime gives higher in-hand salary?

The new regime gives higher in-hand pay for most employees below roughly Rs 15 lakh CTC, and even above that for anyone without a home loan or high metro HRA claim, because it needs no proof of investment. The old regime pulls ahead once you combine Section 80C (Rs 1.5 lakh), health insurance under 80D, home loan interest under Section 24(b), and HRA exemption. Toggle the regime switch above to compare your own numbers, or use the Old vs New Tax Regime Calculator for a full breakeven-deduction breakdown by income.

What is the in-hand salary for 2.4 LPA?

For a CTC of Rs 2.4 lakh a year (Rs 20,000 a month), the estimated in-hand salary is about Rs 17,495 a month. Basic salary at 40 per cent works out to Rs 8,000, employee PF is Rs 960, and professional tax is around Rs 200. No income tax applies at this income level under either regime.

What is the in-hand salary for 4.8 LPA?

For a CTC of Rs 4.8 lakh a year (Rs 40,000 a month), the estimated in-hand salary is about Rs 35,190 a month. Basic salary at 40 per cent is Rs 16,000, employee PF is Rs 1,920, and professional tax is around Rs 200. No income tax applies at this income level under the new regime.

What is the in-hand salary for Rs 28,000 CTC per month?

For a monthly CTC of Rs 28,000 (Rs 3.36 lakh a year), the estimated in-hand salary is about Rs 24,573. Employer PF and gratuity reduce the Rs 28,000 CTC to a gross salary of roughly Rs 26,117 a month. Employee PF (Rs 1,344) and professional tax (Rs 200) are deducted from that. No income tax applies at this salary level.

What is the take-home salary for a 15 LPA CTC?

For a Rs 15 lakh CTC, the estimated monthly in-hand under the new regime is about Rs 1,03,000-1,04,000. Basic at 40 per cent is Rs 50,000 a month, so employee PF is Rs 6,000. Since annual gross exceeds the Rs 12.75 lakh tax-free threshold for salaried employees, some income tax applies even after the Section 87A rebate.

How can I increase my monthly in-hand salary?

Three approaches work for most salaried employees. Ask HR to structure part of your CTC as employer NPS contribution under Section 80CCD(2), which is tax-exempt in both regimes up to 10 per cent of basic (14 per cent for government employees). Compare both tax regimes every year rather than assuming one is always better. And if you have a home loan and pay metro rent, check whether the old regime combined with full Section 80C, 80D, and HRA claims beats the new regime for your specific numbers.

What is the 8th Pay Commission salary revision?

The 8th Pay Commission was constituted by the Union Cabinet in January 2025 to revise pay for central government employees, with implementation targeted for 2026. It will apply a new fitment factor to current 7th CPC pay levels, similar to how the 7th Pay Commission used a fitment factor of 2.57 in 2016. Central government employees can enter their revised basic pay into the calculator above once the new levels are notified.

What is marginal relief and how does it affect my salary?

Marginal relief stops a small increase in income from causing a disproportionately large jump in tax right above the Rs 12 lakh rebate threshold. Instead of paying the full slab tax the moment taxable income crosses Rs 12,00,000, your tax is capped at the amount by which your income exceeds that threshold. The relief shrinks as income rises and disappears entirely by about Rs 12,75,000 taxable income.

What is the difference between Financial Year and Assessment Year?

The Financial Year (FY) is the 12 months, April to March, in which you earn your salary. The Assessment Year (AY) is the following year, when that income is assessed and taxed. Salary earned in FY 2026-27 (April 2026 to March 2027) is filed and assessed as AY 2027-28.

Why is my payslip gross pay lower than my CTC divided by 12?

Because employer PF contribution and gratuity provision are part of your CTC but are not paid to you as salary. They are deposited into your EPF account or held in provision instead of appearing as a payslip earning line, which is why gross pay on your payslip typically runs 6-7 per cent below CTC divided by 12.

Fermor is a financial platform built for India. The calculators are the distribution layer: free tools that give real answers to real financial questions. The product being built is an automated financial action system that uses the Account Aggregator framework to connect real financial accounts and close the gap between knowing what you should do with your money and actually doing it.

In-Hand Salary Calculator: Calculate Take-Home Pay from CTC | Fermor

What Is In-Hand Salary?

In-hand salary, also called take-home pay or net salary, is the amount that actually gets credited to your bank account each month after all deductions are subtracted from your gross salary. It is what you keep, not what your employer spends on you.

Your CTC (Cost to Company) includes employer-side costs like employer PF contribution, gratuity, and insurance premiums that you never receive directly. This is why your in-hand salary is typically 15-25 per cent lower than your monthly CTC equivalent. Understanding the gap between CTC and in-hand pay is essential when evaluating job offers or planning your monthly budget.

The three main deductions from your gross salary are: Employee Provident Fund (12 per cent of basic), Professional Tax (state-dependent, up to Rs 2,500 per year), and Income Tax TDS (based on your tax regime and applicable slab rates). The calculator above computes TDS automatically under either the old or new regime.

In-Hand Salary Formula and Calculation

In-Hand Salary = Gross Salary minus (Employee PF + Professional Tax + Income Tax TDS)

Gross salary is the sum of basic salary, HRA, special allowances, and any other allowances paid by the employer. It excludes employer-side costs like employer PF, gratuity, and insurance premiums.

Example: CTC of Rs 12,00,000 per year. Basic salary at 40 per cent = Rs 40,000 per month. HRA at 20 per cent = Rs 20,000 per month. Employer PF (12 per cent of basic) = Rs 4,800. Gratuity (4.81 per cent of basic) = Rs 1,924. Gross salary = Rs 12,00,000 minus Rs 4,800 minus Rs 1,924 per month = Rs 93,276 per month. Special allowance = Rs 33,276. Employee PF at 12 per cent of basic = Rs 4,800. Professional Tax = Rs 200. Income Tax TDS (new regime, FY 2026-27) = Nil (annual gross Rs 11,19,312 is below Rs 12 lakh rebate threshold). In-hand salary = Rs 88,276 per month.

Salary Breakup Example (CTC Rs 12,00,000)

Sample salary breakup for CTC of Rs 12,00,000 per annum
Component	Monthly (Rs)	% of CTC
Basic Salary	Rs 40,000	40.0%
HRA	Rs 20,000	20.0%
Special Allowance	Rs 33,276	33.3%
Employer PF (12% basic, in CTC)	Rs 4,800	4.8%
Gratuity (4.81% basic, in CTC)	Rs 1,924	1.9%
Gross Salary	Rs 93,276	93.3%
Employee PF (12% of basic)	Rs -4,800	-4.8%
Professional Tax	Rs -200	-0.2%
Income Tax TDS (new regime)	Rs Nil	0%
In-Hand Salary	Rs 88,276	88.3%

CTC vs Gross Salary vs Net Salary

These three terms represent different amounts. CTC is the total employer cost, gross salary is what you earn before deductions, and net salary (in-hand) is what you actually receive.

Difference between CTC, gross salary, and net salary
Term	Includes	Excludes
CTC	Basic + HRA + Allowances + Employer PF + Gratuity + Bonus + Insurance	Nothing (it is the total cost)
Gross Salary	Basic + HRA + Allowances + Bonus	Employer PF, Gratuity, Insurance
Net Salary (In-Hand)	Gross Salary minus Deductions	Employee PF, Professional Tax, Income Tax TDS

PF and Professional Tax Deductions

Employee Provident Fund (EPF) is a mandatory retirement savings scheme regulated by the EPFO. The employee contributes 12 per cent of basic salary. The employer contributes 12 per cent of basic, split into 8.33 per cent towards EPS (Employee Pension Scheme) and 3.67 per cent towards EPF. The EPF account earns interest at a rate set annually by the EPFO, which was 8.25 per cent for FY 2025-26.

Professional tax is a state-level tax on salaried employees. The maximum amount across states is Rs 2,500 per year. The table below shows the rate for major states.

State-wise professional tax rates for salaried employees (2025)
State	Monthly Professional Tax	Threshold
Karnataka	Rs 200/month	Salary above Rs 15,000
Maharashtra	Rs 175-300/month	Based on salary slab
Tamil Nadu	Up to Rs 208/month	Salary above Rs 21,000
West Bengal	Rs 110-200/month	Based on salary slab
Telangana	Rs 150-200/month	Based on salary slab
Andhra Pradesh	Rs 150-200/month	Based on salary slab
Gujarat	Rs 200/month	Salary above Rs 12,000
Madhya Pradesh	Rs 208/month	Salary above Rs 25,000
Delhi	Nil	No professional tax
Haryana	Nil	No professional tax
Rajasthan	Nil	No professional tax
Uttar Pradesh	Nil	No professional tax

Use the Gratuity Calculator to estimate your gratuity amount and understand how it fits into your overall compensation structure.

Salary Components Explained

A typical Indian salary structure includes these components:

Basic Salary: The core component, typically 40-50 per cent of CTC. It determines PF, gratuity, and HRA calculations. A higher basic means higher retirement benefits but also higher PF deductions.

House Rent Allowance (HRA): Paid to cover rental expenses. Company policy sets the percentage of basic; it varies widely and is not fixed by law. Tax exemption under Section 10(13A), old regime only, is the smallest of: actual HRA received, rent paid minus 10 per cent of basic, or 50 per cent of basic in a metro city (40 per cent elsewhere).

Special Allowance: The balancing figure that makes up the difference between CTC and the sum of other components. Fully taxable.

Performance Bonus: Variable pay based on individual and company performance. Typically 10-20 per cent of CTC. Taxed in the year of receipt.

Employer PF: 12 per cent of basic paid by the employer. Not deducted from your salary. It is an additional cost to the company and part of your CTC.

Gratuity: 4.81 per cent of basic salary. Paid when you leave after 5 years of service. It is an employer cost, not deducted from your pay.

Use the HRA Calculator to work out your exact exemption from your actual rent and basic salary, or the CTC Calculator for a full breakdown of every component from your offer letter figure.

Income Tax on Salary: TDS Calculation

Income tax on salary is deducted at source (TDS) by your employer every month based on your estimated annual tax liability. Your employer asks you to declare expected investments and choose between the old and new tax regime at the start of the financial year.

The calculator above automatically computes your estimated TDS based on the regime you select. Under the new regime for FY 2026-27, salary up to Rs 12,75,000 (after standard deduction of Rs 75,000) is effectively tax-free due to the rebate under Section 87A. Use the Old vs New Tax Regime Calculator for a detailed comparison with all deduction inputs.

Financial Year vs Assessment Year

The Financial Year (FY) is the 12-month period, April to March, in which you actually earn your salary. The Assessment Year (AY) is the year immediately after, when that income is assessed and taxed. Salary earned between April 2026 and March 2027 falls in FY 2026-27, and is assessed and filed as AY 2027-28.

Your monthly TDS is deducted during the financial year based on your employer's estimate of your full-year tax. You reconcile the exact figure, and claim any refund or pay any shortfall, when you file your income tax return for that year in the following assessment year.

Income Tax Slabs for Salaried Employees, FY 2026-27

Your monthly TDS is computed by applying these slab rates to your annual taxable income, then dividing by 12. The old and new regime slabs are structured very differently, which is why the same salary can produce very different take-home pay depending on which one you pick.

New tax regime slab rates, FY 2026-27. Standard deduction Rs 75,000. Section 87A rebate makes tax nil up to Rs 12,00,000 taxable income.
Taxable Income Slab	Tax Rate
Up to Rs 4,00,000	Nil
Rs 4,00,001 to Rs 8,00,000	5%
Rs 8,00,001 to Rs 12,00,000	10%
Rs 12,00,001 to Rs 16,00,000	15%
Rs 16,00,001 to Rs 20,00,000	20%
Rs 20,00,001 to Rs 24,00,000	25%
Above Rs 24,00,000	30%

Old tax regime slab rates, FY 2026-27 (unchanged for several years). Standard deduction Rs 50,000. Section 87A rebate makes tax nil up to Rs 5,00,000 taxable income.
Taxable Income Slab	Tax Rate
Up to Rs 2,50,000	Nil
Rs 2,50,001 to Rs 5,00,000	5%
Rs 5,00,001 to Rs 10,00,000	20%
Above Rs 10,00,000	30%

A 4 per cent health and education cess is added on top of the slab tax in both regimes. Toggle the regime switch in the calculator above to see exactly which slabs your own salary falls into.

Marginal Relief Near the Rs 12 Lakh Threshold

Without a safeguard, a taxpayer earning Rs 12,00,001 would owe tax on the full slab structure while someone earning Rs 12,00,000 pays nothing, a sudden cliff of tens of thousands of rupees for one extra rupee of income. Marginal relief under Section 87A prevents this: it caps your tax at the amount your taxable income exceeds Rs 12,00,000 by, until the relief tapers out.

Marginal relief worked examples, new regime, FY 2026-27 (before 4% cess)
Taxable Income	Tax Without Relief	Tax With Marginal Relief	Relief Amount
Rs 12,00,000	Rs 60,000	Nil	Rs 60,000
Rs 12,10,000	Rs 61,500	Rs 10,000	Rs 51,500
Rs 12,40,000	Rs 66,000	Rs 40,000	Rs 26,000
Rs 12,70,000	Rs 70,500	Rs 70,000	Rs 500
Rs 12,75,000	Rs 71,250	Rs 71,250	Nil (relief fully phased out)

Relief shrinks as taxable income rises past Rs 12 lakh and disappears entirely by about Rs 12,75,000, the point at which the ordinary slab tax itself no longer exceeds the income above the threshold. This is also why Rs 12,75,000 gross salary, not a round Rs 12,00,000 or Rs 13,00,000, is the figure quoted as the effective tax-free ceiling for salaried employees.

Old Regime vs New Regime: Which Gives Higher In-Hand Salary?

The new regime gives higher in-hand salary for most salaried employees below roughly Rs 15 lakh CTC. Above that, the old regime only wins if you combine several deductions at once: 80C, 80D, home loan interest, and HRA exemption together, not any single one alone.

Old vs New Regime annual tax comparison, FY 2026-27. Assumes 40% basic. Old regime claims full Section 80C (Rs 1.5L), Section 80D (Rs 25K), home loan interest (Rs 2L), and HRA exemption of about 50% of basic for a metro renter. New regime claims only the standard deduction.
Annual CTC	New Regime Tax	Old Regime Tax (full deductions)	Better Regime
Rs 6 LPA	Nil	Nil	Same
Rs 9 LPA	Nil	Nil	Same
Rs 12 LPA	Nil	Nil	Same
Rs 15 LPA	Rs 81,766	Rs 49,221	Old Regime
Rs 18 LPA	Rs 1,25,625	Rs 94,945	Old Regime
Rs 20 LPA	Rs 1,64,428	Rs 1,29,642	Old Regime
Rs 25 LPA	Rs 2,74,794	Rs 2,43,953	Old Regime
Rs 30 LPA	Rs 4,12,863	Rs 3,58,263	Old Regime

Claiming only Section 80C, without HRA exemption or home loan interest, is not enough to flip the result at any of these income levels. The new regime still wins even at Rs 30 lakh CTC on 80C alone, because its lower slab rates and higher standard deduction outweigh a single Rs 1.5 lakh deduction. The old regime needs the combination shown above to compete.

For the exact breakeven deduction level at your specific income, see the Old vs New Tax Regime Calculator, which includes a full breakeven table by income level. Switch the regime toggle in the calculator above to see your own numbers instantly.

Gratuity in CTC: What It Means for Your Take-Home

Gratuity is a lump sum payment made by the employer when an employee leaves after completing 5 years of continuous service. It is calculated at 15 days of last drawn basic salary for each completed year of service, which works out to approximately 4.81 per cent of basic salary per year.

Since gratuity is an employer cost included in your CTC, it reduces the amount available for your gross salary. Job seekers evaluating offers should look at the gross salary (what they actually earn before deductions) rather than the CTC, as gratuity and employer PF are benefits they receive only at exit or retirement.

8th Pay Commission Salary Calculator

The 8th Pay Commission was constituted by the Union Cabinet in January 2025 to revise the pay structure for approximately 50 lakh central government employees and 65 lakh pensioners, with implementation expected from January 2026. The commission will recommend revised basic pay, allowances, and pension norms.

Previous commissions used a fitment factor to revise basic pay. The 7th Pay Commission, implemented from January 2016, used a fitment factor of 2.57 and raised the minimum basic from Rs 7,000 to Rs 18,000. Once the 8th Pay Commission announces its revised pay levels, central government employees can enter the new basic pay in the calculator above to estimate their revised in-hand salary including DA, HRA, and TA.

Current 7th CPC pay levels with approximate in-hand salary (including DA at current rates, HRA for X-class city)
Pay Level	Entry Basic Pay (7th CPC)	Approx. Monthly In-Hand
Level 1 (Group D)	Rs 18,000	Rs 25,000-28,000
Level 4 (LDC / Postal Asst.)	Rs 25,500	Rs 34,000-39,000
Level 6 (UDC / Steno Grade D)	Rs 35,400	Rs 46,000-53,000
Level 7 (Inspector / ASO)	Rs 44,900	Rs 57,000-66,000
Level 10 (Section Officer)	Rs 56,100	Rs 71,000-84,000
Level 12 (Under Secretary)	Rs 78,800	Rs 96,000-1,12,000
Level 13 (Deputy Secretary)	Rs 1,23,100	Rs 1,48,000-1,70,000

DA and HRA add significantly to the basic pay for central government employees. DA is revised twice a year and is currently around 55 per cent of basic (as of 2025). HRA for X-class cities (Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad) is 27 per cent of basic.

Salary Breakup for Different CTC Slabs

Typical salary breakup at different CTC levels (monthly), new regime, FY 2026-27
Component	CTC Rs 6 L	CTC Rs 12 L	CTC Rs 25 L
Basic Salary	Rs 20,000	Rs 40,000	Rs 83,333
HRA	Rs 10,000	Rs 20,000	Rs 41,667
Special Allowance	Rs 16,638	Rs 33,276	Rs 69,325
Gross Salary	Rs 46,638	Rs 93,276	Rs 1,94,325
Employee PF (12% of basic)	-Rs 2,400	-Rs 4,800	-Rs 10,000
Professional Tax	-Rs 200	-Rs 200	-Rs 200
Income Tax TDS (New Regime)	Nil	Nil	-Rs 22,900
In-Hand Salary	Rs 44,038	Rs 88,276	Rs 1,61,225

In-Hand Salary for Common Monthly CTC Amounts

The table below shows estimated in-hand salary for common monthly CTC amounts, calculated using 40 per cent basic salary, 12 per cent EPF, and Rs 200 professional tax. For example, a CTC of Rs 20,000 a month works out to Rs 2.4 LPA a year, with in-hand of about Rs 17,495. A CTC of Rs 40,000 a month is Rs 4.8 LPA, with in-hand of about Rs 35,190. Income tax is nil for annual CTC up to Rs 12.75 lakh under the new regime for FY 2026-27, where the full Section 87A rebate applies.

Estimated in-hand salary. Assumes 40% basic, 12% EPF, Rs 200 professional tax, new regime FY 2026-27. Enter your actual CTC in the calculator above for a precise breakup.
Monthly CTC	Annual CTC	Basic/Month	EPF Deduction	Est. Monthly In-Hand
Rs 20,000	2.4 LPA	Rs 8,000	Rs 960	Rs 17,495
Rs 25,000	3 LPA	Rs 10,000	Rs 1,200	Rs 21,919
Rs 28,000	3.36 LPA	Rs 11,200	Rs 1,344	Rs 24,573
Rs 30,000	3.6 LPA	Rs 12,000	Rs 1,440	Rs 26,343
Rs 40,000	4.8 LPA	Rs 16,000	Rs 1,920	Rs 35,190
Rs 50,000	6 LPA	Rs 20,000	Rs 2,400	Rs 44,038
Rs 75,000	9 LPA	Rs 30,000	Rs 3,600	Rs 66,157
Rs 1,00,000	12 LPA	Rs 40,000	Rs 4,800	Rs 88,276
Rs 1,50,000	18 LPA	Rs 60,000	Rs 7,200	Rs 1,21,426
Rs 2,00,000	24 LPA	Rs 80,000	Rs 9,600	Rs 1,55,873

These are estimates. Actual in-hand depends on your exact salary structure, the state you work in (professional tax varies), and whether you choose old or new regime. For salaries above Rs 12.75 lakh annual, income tax applies and reduces in-hand further.

Typical In-Hand Salary by Job Role in India

The table below shows approximate in-hand monthly salary ranges for common job profiles in India, based on average CTC ranges in the industry for 2025. Actual in-hand varies with company structure, city, and tax situation.

Approximate in-hand salary ranges for common roles in India (2025)
Job Role	Experience	Typical CTC (LPA)	Est. Monthly In-Hand
Software Engineer	0-2 years	Rs 4-8 LPA	Rs 28,000-55,000
Software Engineer	3-5 years	Rs 10-18 LPA	Rs 68,000-1,20,000
Data Analyst	0-2 years	Rs 4-7 LPA	Rs 28,000-48,000
Data Scientist	2-5 years	Rs 10-20 LPA	Rs 68,000-1,35,000
Product Manager	2-5 years	Rs 15-30 LPA	Rs 1,00,000-2,00,000
Chartered Accountant	0-2 years	Rs 6-10 LPA	Rs 42,000-68,000
DevOps Engineer	2-4 years	Rs 8-15 LPA	Rs 55,000-1,00,000
Digital Marketing Manager	2-5 years	Rs 6-12 LPA	Rs 42,000-82,000
Machine Learning Engineer	2-5 years	Rs 12-25 LPA	Rs 80,000-1,65,000
Bank PO (SBI)	Entry level	Rs 8-11 LPA	Rs 55,000-75,000
Civil Engineer	2-5 years	Rs 5-10 LPA	Rs 35,000-68,000
Graphic Designer	1-3 years	Rs 3-7 LPA	Rs 22,000-48,000

For the most accurate tax calculation on any of these salary levels, use the Income Tax Calculator to determine exact annual liability and then input the monthly TDS in the calculator above.

How to Read Your Payslip

Every Indian payslip separates Earnings from Deductions, the same split shown in the result panel above. Matching your actual payslip against that structure is the fastest way to spot-check whether your salary is set up the way you think it is.

What each payslip line means, and where it comes from
Payslip Line	Side	Where It Comes From
Basic Salary	Earnings	Fixed percentage of CTC set by your employer, usually 40-50%
House Rent Allowance	Earnings	Set by company policy as a percentage of basic
Special Allowance / Other Allowances	Earnings	The balancing figure: CTC minus every other named component
Gross Earnings / Gross Pay	Total	Sum of all earnings lines above, before any deduction
Provident Fund (PF)	Deductions	12% of basic salary, sent to your EPFO account
Professional Tax	Deductions	Fixed state-set amount, zero in several states
Income Tax / TDS	Deductions	Your annual estimated tax liability divided across the months left in the financial year
Net Pay / Take-Home	Total	Gross Earnings minus all deduction lines: the amount credited to your account

Employer PF contribution and gratuity provision usually do not appear as payslip lines at all, since they are paid into your EPF account or held in provision rather than credited to you directly each month. If your payslip's Gross Pay is noticeably lower than your CTC divided by 12, this is almost always why.

How to Use This In-Hand Salary Calculator

Enter your CTC: enter your annual Cost to Company as per your offer letter or latest salary revision.
Adjust components: set your basic salary percentage (typically 40-50 per cent of CTC) and HRA percentage (typically 20-25 per cent of CTC).
Select your tax regime: choose New Regime or Old Regime. The calculator automatically computes your monthly TDS. If you switch regimes, the result updates instantly and shows how much you save vs the other regime.
More settings: click More settings to enter other allowances, employee PF percentage, professional tax, and (for old regime) your Section 80C investments for a more accurate tax estimate.
Review the breakdown: the result panel shows gross salary, individual deductions, auto-calculated TDS, and final in-hand monthly amount.

Click any value in the slider to type a precise number. The currency selector converts all amounts to USD, EUR, GBP, and other currencies for NRI users. Your inputs are saved automatically and restored the next time you visit.

How to Maximize Your Monthly In-Hand Salary

Three practical approaches work for most salaried employees in India. Each targets a different part of the salary structure.

Restructure your salary with tax-free components: Ask HR to include NPS employer contribution (exempt up to 10 per cent of basic salary under Section 80CCD(2)), meal coupons (Rs 2,200/month tax-free), and Leave Travel Allowance (LTA) in your salary structure. These components reduce taxable income without changing your CTC.

Choose the right tax regime every year: Run both regimes in the calculator above before each financial year begins. The new regime is typically better below Rs 12-15 LPA. Above Rs 15 LPA with full 80C and home loan deductions, the old regime saves more. The break-even point shifts as your salary and investments change.

Maximize Section 80CCD(1B) for NPS: Under the old regime, contributing Rs 50,000 to NPS gives an additional deduction over and above the Rs 1.5 lakh Section 80C limit. At the 30 per cent tax slab, this saves Rs 15,600 per year (Rs 1,300/month more in hand). This deduction is available even under the new regime via employer NPS contribution under 80CCD(2).

Request a higher basic salary if you have a home loan: HRA exemption is calculated on basic salary. A higher basic means a higher HRA component and potentially higher HRA exemption under the old regime, which reduces taxable income. This only helps if you live in rented accommodation.

What This Calculator Covers

This calculator addresses the four most common gaps in basic salary estimators. Here is what is supported and what remains out of scope.

Correct CTC-to-gross conversion (supported): Employer PF (12 per cent of basic) and gratuity (4.81 per cent of basic) are subtracted from CTC before computing your gross salary. This typically reduces gross by 6-7 per cent of CTC, making the in-hand estimate significantly more accurate than calculators that treat full CTC as gross.

Variable pay (supported): Use the Variable Pay slider to specify what percentage of your CTC is performance bonus or quarterly incentive. The fixed gross is computed on the remaining CTC, while variable income is included in your annual tax calculation, giving a more accurate TDS estimate.

Old regime deductions (supported): The More Settings panel for the old regime includes Section 80C (up to Rs 1.5 lakh), Section 80D health insurance (up to Rs 25,000), and home loan interest under Section 24b (up to Rs 2 lakh). NPS 80CCD(1B) is not yet a separate slider; enter it under 80C if you wish to approximate.

Perquisite income / ESOP and RSU (supported): Enter your annual perquisite income in More Settings. RSU vesting is taxed as salary in the year of vesting at the fair market value minus exercise price. Enter the expected annual vesting value and the calculator includes it in your annual tax computation.

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Frequently Asked Questions

CTC (Cost to Company) is the total amount your employer spends on you annually, including basic salary, HRA, allowances, employer PF contribution, gratuity, and bonus. In-hand salary is what actually gets credited to your bank account after deducting employee PF, professional tax, and income tax from your gross salary. In-hand pay is typically 12-20 per cent lower than the monthly equivalent of your CTC.

Disclaimer: All calculations on this page are indicative only. Actual in-hand salary depends on your specific salary structure, employer policies, applicable professional tax rates by state, and individual income tax liability under the applicable slab rates for the financial year. Tax calculations are estimates based on standard deductions and the regime selected; they do not account for all exemptions and deductions. This calculator is for educational and planning purposes only and does not constitute financial advice. Consult your HR department or a SEBI-registered financial adviser for precise salary breakdowns and tax planning.