CTC to In-Hand Salary Calculator
See your real monthly in-hand salary from an Indian CTC offer.
₹15,00,000 (15 LPA)
Estimated monthly in-hand salary
₹1,03,976
₹12,47,715 per year · 83% of CTC
| Component | Amount / year |
|---|---|
| CTC (offer letter) | ₹15,00,000 |
| − Employer PF contribution | −₹72,000 |
| − Gratuity provisioning | −₹28,860 |
| = Gross salary | ₹13,99,140 |
| − Income tax + cess | −₹81,766 |
| − Employee PF (to your EPF) | −₹67,159 |
| − Professional tax | −₹2,500 |
| = In-hand salary | ₹12,47,715 |
Estimate only — not tax advice. Figures are estimates based on publicly available tax rules and may not reflect your full circumstances. See our methodology & sources. Always confirm with an official tax authority or a licensed adviser before making decisions.
Your Indian offer letter quotes Cost to Company (CTC), but your bank credit is smaller. CTC bundles employer-side costs — the employer's Provident Fund contribution and gratuity provisioning — that never reach you as cash, and your own PF, professional tax and income tax come out before in-hand pay.
This calculator walks the full bridge from CTC to monthly in-hand salary, showing each deduction explicitly. It assumes basic pay is 40% of CTC, the most common structure, and lets you pick your state and tax regime. Note that your employee PF isn't lost — it accrues in your EPF account with employer matching.
Because two offers with the same CTC can produce very different take-home depending on structure, understanding this bridge is the key to comparing job offers in India fairly.
Why CTC and in-hand differ so much
Cost to Company is exactly what its name says: everything the employer spends on you in a year. That includes several things you never see. The employer's Provident Fund contribution is part of CTC but is paid into your PF account, not your bank. Gratuity accrues at roughly 4.81% of basic pay and only becomes payable after five years of service. Some employers also fold in insurance premiums, meal cards and a variable bonus that is not guaranteed.
Strip all of that out and you are left with gross salary. Take income tax and your own PF contribution off that, and you have monthly in-hand. A 12 lakh CTC and 12 lakh of gross pay are quite different offers, which is why two candidates quoting the same CTC can bank materially different amounts.
The components that actually move the number
Basic pay is the lever almost everything else hangs from. PF is 12% of basic, gratuity accrues on basic, and the HRA exemption is capped relative to basic. A structure with a low basic and a large special allowance pushes more of the CTC into fully taxable cash and reduces the PF that quietly accumulates on your behalf: better monthly, worse over a decade.
HRA is the other lever, and only under the old regime. If you pay rent, the exempt portion is the smallest of the HRA received, rent paid minus 10% of basic, and 50% of basic in a metro (40% elsewhere). Under the new regime HRA is not exempt at all, which is a large part of why the regime choice is not obvious for renters in expensive cities.
Reading an offer letter properly
Ask for the full salary structure, not the CTC figure. You want basic, HRA, special allowance, employer PF, gratuity and any variable component stated separately, along with whether the variable is guaranteed or performance-linked. A structure sheet answers in one page what a CTC number obscures entirely.
Then compare offers on monthly in-hand and on employer PF separately. In-hand tells you what you can spend; employer PF tells you what is being saved on your behalf. An offer that is 2,000 rupees a month worse in hand but 3,000 a month better in PF is not a worse offer, it is a differently shaped one, and which shape suits you depends on whether you need the cash now.
Related
Frequently Asked Questions
+How is in-hand salary calculated from CTC?
Remove employer-side costs (employer PF, gratuity) to get gross salary, then subtract your income tax, employee PF and professional tax. What remains is in-hand pay — typically 70–85% of CTC for mid-income earners.
+Is employee PF deducted from in-hand salary?
Yes, your 12% PF contribution reduces monthly cash, but it accumulates in your EPF retirement account with employer matching and interest. It's forced saving, not a tax, which is why we show it as a separate line.
Estimate only — not tax advice. Figures are estimates based on publicly available tax rules and may not reflect your full circumstances. See our methodology & sources (last reviewed June 2026). Always confirm with an official tax authority or a licensed adviser before making decisions.