How to calculate in-hand salary from CTC

Your in-hand (take-home) salary is what actually lands in your bank account each month, and it is always lower than your CTC. To calculate take-home salary from CTC, first subtract the employer’s contributions — mainly employer PF and, where applicable, gratuity and insurance — to arrive at your gross salary. From the gross, deduct your own statutory contributions such as employee PF, ESI and professional tax, then subtract income tax (TDS) under the chosen regime. What remains is your monthly in-hand salary.

This salary calculator for India converts your annual CTC into a detailed gross-to-net breakup so you can see exactly how each component is built and where every rupee of deduction goes. It uses standard salary-structure assumptions (basic as a percentage of CTC, HRA on basic, statutory PF/ESI/PT rates and FY 2025-26 income tax slabs) to estimate your take-home pay.

Components of your salary structure

A typical Indian salary structure is split into fixed earnings and deductions. Understanding each line item helps you read your payslip and negotiate your offer.

• Basic salary — the core component (usually 40–50% of CTC) on which PF, gratuity and many allowances are calculated.
• House Rent Allowance (HRA) — generally 40% (non-metro) or 50% (metro) of basic; partly exempt under the old regime if you pay rent.
• Special allowance — the balancing, fully taxable component that makes up the rest of your gross salary.
• Provident Fund (PF / EPF) — 12% of basic from both employee and employer; the employee share is a deduction from take-home.
• Employee State Insurance (ESI) — 0.75% (employee) of gross, applicable only when monthly gross is ₹21,000 or below.
• Professional tax (PT) — a small state-levied tax (up to ₹2,500 a year), varying by state.
• Income tax (TDS) — deducted monthly by your employer based on your projected annual income and chosen tax regime.

For CA firms and payroll teams

Chartered Accountants and payroll teams can use this gross-to-net salary calculator to quickly model offer letters, structure tax-efficient salary packages for clients and explain take-home figures to employees. Hidesc helps CA firms run payroll workflows, track PF/ESI/TDS deadlines and manage client documents across the whole practice from one place.

Example: ₹12,00,000 CTC to in-hand breakup (illustrative)