CTC to In-Hand Estimator

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₹1 Lakh ₹3 Cr
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% of Basic
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Employer PF included in CTC?

Most companies include 12% Employer PF inside the total CTC package.

Note on Income Tax (TDS)

This calculator breaks down exactly what components form your take-home pay based on standard statutory PF and PT deductions. It does not deduct Income Tax (TDS) as tax liability depends heavily on your individual 80C declarations, standard deductions, and choice of Tax Regime.

Estimated In-Hand Salary

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Per Month

Gross Monthly

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Total Deductions

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Understanding Your CTC vs In-Hand Salary

Cost to Company (CTC) is the total amount a company spends on an employee, but it rarely matches the money that hits your bank account exactly. The difference results from statutory deductions like Provident Fund (PF), Gratuity, Professional Tax, and Income Tax (TDS).

In-Hand Salary Formula: Gross Salary - (Employee PF + Professional Tax + Income Tax/TDS)

Components of Salary

  • Basic Salary: By law, it comprises around 40-50% of your CTC. PF and Gratuity are calculated on this base.
  • HRA & Allowances: House Rent Allowance and standard/special allowances make up the rest of your Gross Pay.
  • Employer PF: This is a 12% contribution matching your Employee PF. Companies generally subtract this entirely from your CTC before arriving at your Gross Pay.
  • Employee PF: 12% of your Basic pay is deducted straight from your Gross Pay and deposited into your EPF account alongside the employer's share.

Common FAQs

Why don't I get my full CTC divided by 12?

CTC includes non-cash benefits or long-term savings components. The Employer PF (which goes to a government fund) and sometimes Gratuity or Insurance premiums are listed on the CTC document but deducted before your Gross Salary is calculated.

What is Professional Tax?

It is a small state-level tax levied by the municipal/state government on salaried individuals. It ranges typically from ₹150 to ₹250 per month depending on what state you work in.