CTC (Cost to Company) is the total amount a company spends on an employee annually. It includes basic salary, HRA, special allowance, PF contribution, gratuity, and other benefits.

What is the difference between CTC and in-hand salary?

CTC is the gross cost to the employer. In-hand salary is what you actually receive after deductions like PF, professional tax, and income tax.

How is PF calculated?

PF is typically 12% of basic salary (employee contribution). Employer also contributes 12%, but only the employee's share is deducted from salary.

CTC to In-Hand Salary Calculator - Take Home Salary

Enter Salary Details

Annual CTC (₹)

Basic Salary (% of CTC)

HRA (% of Basic)

Tax Regime

PF Rate (% of Basic)

Professional Tax (₹/month)

Your Salary Breakdown

Annual CTC-

Basic (Annual)-

HRA (Annual)-

PF Deduction (Annual)-

Professional Tax (Annual)-

Income Tax (Annual)-

Annual In-Hand Salary-

Monthly In-Hand Salary-

About CTC to Salary Calculation

CTC (Cost to Company) includes all components your employer spends on you. This calculator helps you understand what you actually take home by deducting PF, professional tax, and income tax.

📐 How It Works

Formula: In-Hand Salary = CTC - PF Deduction - Professional Tax - Income Tax

PF: 12% of basic salary (employee contribution)
Professional Tax: Varies by state (₹0–₹2,500/year)
Income Tax: Calculated based on chosen regime (old/new)

Frequently Asked Questions

What is a good basic salary percentage?

Basic salary is typically 40-50% of CTC. Higher basic means higher PF and gratuity but also higher take-home in some cases.

Is PF mandatory?

Yes, for organizations with 20+ employees, EPF contribution is mandatory under the EPF Act. Both employee and employer contribute 12% of basic salary.

Which tax regime is better?

New regime has lower rates but no deductions. Old regime allows deductions under 80C, 80D, HRA, etc. Choose based on your total deductions.

Does HRA reduce my taxable income?

Yes, under old regime, HRA exemption is available if you live in rented accommodation. Use the HRA Calculator to compute your exemption.

✅ Do's and ❌ Don'ts

✅ Do's

✅ Do check your salary slip to verify the CTC breakdown.
✅ Do compare old vs new tax regime before choosing.
✅ Do factor in all deductions when negotiating salary.
✅ Do use this calculator before accepting a job offer.

❌ Don'ts

❌ Don't confuse CTC with in-hand salary.
❌ Don't ignore PF and gratuity in your take-home calculation.
❌ Don't assume all allowances are fully taxable.
❌ Don't forget professional tax which varies by state.