CTC to In-Hand Calculator
Decode your salary offer. Calculate your monthly take-home salary from your annual Cost to Company (CTC) package.
Package Details
Variable pay is excluded from monthly in-hand calculation.
Employee & Employer share
Fixed ₹200/month
Pro Tip
Companies often include Gratuity and Insurance in CTC. These are not part of your monthly gross salary and are deducted before reaching your "In-Hand" amount.
Monthly Breakdown
CTC vs Gross vs In-Hand Salary
1. Cost to Company (CTC)
CTC is the total amount an employer spends on an employee in a year. It includes your salary, employer's contribution to EPF, Gratuity, Insurance, and any other benefits.
2. Gross Salary
Gross Salary is the amount calculated after deducting employer's contributions (like EPF and Gratuity) from the CTC. This is the amount before your own taxes and deductions.
3. Net In-Hand Salary
This is the final amount that gets credited to your bank account every month. It is calculated by deducting Income Tax (TDS), Employee EPF contribution, and Professional Tax from your Gross Salary.
Common Deductions
- EPF (12%): Both you and your employer contribute 12% of your Basic Salary to the Provident Fund.
- Professional Tax: A state-level tax, usually capped at ₹2,500 per year (approx ₹200/month).
- Income Tax (TDS): Deducted by the employer based on your projected annual income and chosen tax regime.
Frequently Asked Questions
Why is my In-Hand salary so much lower than my CTC?
CTC includes many 'hidden' costs like employer's EPF contribution, gratuity provision, and insurance. Additionally, your own EPF contribution and Income Tax are deducted from your gross salary before it reaches your bank.
Is Gratuity part of my monthly salary?
No. Gratuity is a statutory benefit paid only after 5 years of continuous service. However, companies include the 'provision' for it in your CTC to show the total cost they incur.
Which tax regime is better for me?
The New Tax Regime is generally better for those who don't have many investments (like LIC, PPF, Home Loan). The Old Regime is better if you have significant deductions under Section 80C, 80D, etc.
How is Basic Salary calculated?
There is no fixed rule, but most Indian companies set Basic Salary at 40% to 50% of the total CTC or Fixed Salary component.