CTC to In-Hand Salary Calculator

What is CTC, and how is in-hand salary worked out?

Cost to company (CTC) is everything an employer spends on you in a year: salary paid monthly, plus its own PF contribution, gratuity provision and sometimes insurance and bonuses. Your in-hand salary is only the part paid to you each month, after your own PF, professional tax and income tax are deducted — which is why it is always noticeably lower than CTC ÷ 12.

This CTC to in-hand calculator removes employer-only costs from your CTC to find the gross salary, then deducts PF, professional tax and income tax under either regime to show your monthly in-hand pay.

How this calculator works

CTC is what you cost your employer, not what you receive. Three things sit inside it that never reach your bank account: the employer’s 12% PF contribution, the gratuity accrual of 4.81% of basic, and benefits like insurance premiums.

Removing those gives your gross salary — the figure on your payslip. From there, employee PF, professional tax and income tax are deducted to arrive at in-hand pay.

For a typical structure, in-hand works out to roughly 70–80% of CTC. A higher basic pushes more into PF and gratuity, lowering in-hand but building retirement savings.

Formula

Gross salary = CTC − employer PF − gratuity accrual − other employer costs
In-hand      = gross salary − employee PF − professional tax − income tax
Gratuity accrual = 4.81% of basic   (15 ÷ 26 ÷ 12)

Worked example

1. CTC ₹18,00,000 with basic at 40% (₹7,20,000) and gratuity included.
2. Employer PF ₹86,400, gratuity ₹34,632 → gross salary about ₹16,78,968.
3. Less employee PF ₹86,400, professional tax ₹2,400 and income tax → in-hand roughly ₹1.17 lakh a month under the new regime.

In-hand salary for common CTCs

With basic at 40% of CTC, employer PF, gratuity and your own PF together absorb roughly 11%–12% of CTC before any income tax.

Assumptions & important notes

Frequently asked questions