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Salary & Retirement · Updated for tax year 2026-27

In-hand Salary Calculator — CTC to Take-home

In-hand salary is your CTC minus the employer’s PF and gratuity, then minus your own PF, professional tax, which is deductible under Section 19 (old sec. 16(iii)), and the income tax deducted under Section 392 (old sec. 192). From 17 September 2026 the EPF wage ceiling is ₹25,000 a month, so PF on the ceiling is ₹3,000 a month each from you and your employer. Select FY / Tax year and enter your CTC to see average monthly take-home pay. FY 2026–27 applies both ceilings using a disclosed September proration estimate.

Enter your details

Values you enterComputed values
Employer PF in CTC?
Employee PF calculated on
PF wage ceiling: FY 2026–27: ₹15,000 up to 16 September 2026; ₹25,000 from 17 September 2026. September uses a calendar-day estimate: 16/30 at the earlier ceiling and 14/30 at the revised ceiling. Actual payroll may use a different wage-period method. Monthly results are annual averages.

Employee PF: ₹2,447 per month on average. Higher employee contributions do not automatically require matching employer contributions. Actual PF wages may include DA and other amounts.

Gratuity in CTC?
Tax regime

Result

Average monthly in-hand salary

₹94,907

Employee PF / month (average)₹2,447Employer PF / month (average)₹2,447Basic salary (annual)₹6,00,000Employer PF included in CTC (annual)₹29,360Gratuity provision₹0Gross salary₹11,70,640Employee PF− ₹29,360Professional tax− ₹2,400Income tax− ₹0In-hand per year₹11,38,880

Disclaimer: Computed to the best of our knowledge, as per the law — including the section changes under the Income-tax Act, 2025 — in force on the date this website was last deployed (12 Nov 2026). Results are estimates for guidance only and are not tax, legal or investment advice. Please verify with the Act, rules and notifications, or a qualified professional, before relying on them. Rates and limits last reviewed on 3 Oct 2026.

How to use the In-hand Salary Calculator

  1. 1

    Enter your annual CTC and basic as a percentage of CTC (default 50%; most structures use 40–50%, so check your offer letter). Select FY / Tax year.

  2. 2

    Tell us whether employer PF and gratuity are included in your CTC — most offer letters include PF.

  3. 3

    Choose employee PF on the applicable wage ceiling or full basic salary. If using full basic, choose the employer contribution basis separately.

  4. 4

    Enter your monthly professional tax and choose your tax regime.

CTC to in-hand formula

Gross salary = CTC − Employer PF − Gratuity provision (if part of CTC)

Employee PF = sum of 12% × min(monthly basic, applicable ceiling) over the year (or 12% of full basic)

Gratuity provision ≈ 4.81% of basic

In-hand = Gross salary − Employee PF − Professional tax − Income tax

Employer PF and gratuity are part of your cost to the company but are not paid out monthly. Reimbursements, bonuses and variable pay are not included — add them separately if they are part of your CTC.

Worked example: FY 2026–27, ₹12 lakh CTC

  • Basic 50% = ₹6,00,000 a year (₹50,000 a month). Employee and employer PF on the applicable ceiling are each ₹29,360 for FY 2026–27, including the September proration estimate.
  • With employer PF in CTC and no gratuity provision, gross salary = ₹12,00,000 − ₹29,360 = ₹11,70,640. New-regime taxable income after ₹75,000 standard deduction = ₹10,95,640; rebate makes income tax nil.
  • After employee PF ₹29,360 and professional tax ₹2,400, annual in-hand = ₹11,38,880; average monthly in-hand ≈ ₹94,907.

What changed in September 2026

The Ministry of Labour raised the EPF statutory wage ceiling from ₹15,000 to ₹25,000 a month with effect from 17 September 2026. If your PF is calculated on the ceiling, your contribution rises from ₹1,800 to ₹3,000 a month, so take-home pay falls slightly while your retirement savings grow. FY 2025–26 uses ₹15,000 throughout. FY 2026–27 uses five months at ₹15,000, September prorated 16/30 at ₹15,000 and 14/30 at ₹25,000, and six months at ₹25,000. This is an estimate for constant monthly wages and full-year employment; actual payroll proration may differ.

Frequently Asked Questions

Subtract the employer’s PF and gratuity from the CTC to get gross salary, then subtract your PF, professional tax and income tax. Divide by 12 for the monthly figure.