How to calculate in-hand salary from CTC
Your CTC (Cost to Company) is everything your employer spends on you — salary plus their PF contribution and gratuity provision. That whole amount never reaches your bank, which is why your monthly credit looks lower than CTC ÷ 12.
- Take your annual CTC and split it into basic pay (usually 40% of CTC), HRA (50% of basic in metro cities, 40% otherwise) and special allowance.
- Employer PF is 12% of basic and gratuity is 4.81% of basic — these are part of CTC but not paid monthly.
- Your gross monthly salary is basic + HRA + special allowance.
- Deduct employee PF (12% of basic), professional tax (about Rs 200/month) and income tax TDS for the new or old regime.
- The amount left is your monthly in-hand salary.
Cash salary (no PF) — how leaves are deducted
In a job where you are paid a flat salary like Rs 20,000 in cash or by online transfer with no PF, you take home the full Rs 20,000. When you take an unpaid leave, the deduction is worked out per day: divide the monthly salary by the working days in the month and subtract that amount for each absent day. This is called pro-rata or per-day salary deduction.
Old vs new tax regime (FY 2026-27)
The new regime in FY 2026-27 offers slab rates from 0% up to 30%, with a standard deduction of Rs 75,000 and zero income tax on taxable income up to Rs 12 lakh. The old regime keeps the Rs 50,000 standard deduction and allows deductions like 80C, HRA and home-loan interest, but has steeper slab rates. The calculator compares your in-hand salary under both regimes so you can pick the better one.
Frequently asked questions
How is in-hand salary calculated from CTC?
In-hand salary = gross salary − employee PF (12% of basic) − professional tax (about Rs 200/month) − income tax TDS. Gross salary is CTC ÷ 12 minus employer PF and gratuity, which stay with the company. Use the CTC mode above for the exact answer.
Why is my take-home much lower than CTC?
CTC includes money that is never paid to you monthly — employer PF (12% of basic), gratuity (4.81% of basic) and sometimes variable pay. After employee PF, professional tax and TDS, in-hand is typically 70–80% of CTC.
How do I calculate salary for a partial month or after leave?
Divide your monthly salary by the working days of the month to get the per-day rate, then subtract the per-day rate times the number of unpaid leaves. That is the standard pro-rata method, built into the Cash salary mode.
What is the difference between gross salary and net salary?
Gross salary is your total earnings before any deduction (basic + HRA + allowances). Net salary (in-hand) is what remains after deducting employee PF, professional tax and income tax — the exact figure that lands in your account.
Is this pay slip accepted by employers or for loans?
This slip is an estimate made from the numbers you enter and is ideal for sharing a quick salary breakdown on WhatsApp or saving as PDF. It is not an official company document — some companies and lenders also request their own signed-slip format.