CTC vs gross vs in-hand salary

These three figures are often confused, but they mean very different things. CTC (Cost to Company) is the total annual amount your employer spends on you, including contributions you never receive in cash. Gross salary is your CTC minus the employer-side contributions (mainly employer PF, and sometimes gratuity and insurance). In-hand or take-home salary is your gross salary minus your own deductions — employee PF, ESI, professional tax and income tax (TDS).

This CTC to in-hand calculator does this math for you: enter your annual CTC and it instantly estimates your monthly take-home pay using standard salary-structure assumptions and FY 2025-26 tax slabs. It is the fastest way to convert a headline CTC into the take-home figure that actually matters for budgeting.

Why in-hand is lower than CTC

The gap between your CTC and your in-hand salary comes from two layers of deductions. First, the employer’s contributions — employer PF (12% of basic), gratuity provisioning and group insurance — are part of CTC but are never paid to you in cash. Second, your own statutory deductions (employee PF, ESI where applicable, professional tax) and income tax are taken out of your gross salary every month.

A large variable or performance bonus in the CTC can widen the gap further, since it is paid only on meeting targets. As a rule of thumb, take-home from CTC for mid-range salaries works out to roughly 80–90% of CTC, depending on your salary structure, deductions and tax regime.

For CA firms

CA firms and consultants can use this CTC calculator to quickly explain take-home figures to clients’ employees, structure offer letters and model the impact of the new vs old tax regime on net pay. Hidesc helps practices manage payroll, PF/ESI/TDS compliance and client documents from a single dashboard.

Sample CTC to in-hand at different CTC levels (illustrative, monthly)