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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. Enter your CTC to see your monthly take-home pay.

Enter your details

Values you enterComputed values
Employer PF in CTC?
PF calculated on
Gratuity in CTC?
Tax regime

Result

Monthly in-hand salary

₹93,800

Basic salary₹6,00,000Employer PF₹36,000Gratuity provision₹0Gross salary₹11,64,000Employee PF− ₹36,000Professional tax− ₹2,400Income tax− ₹0In-hand per year₹11,25,600

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 (28 Sep 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 28 Sep 2026.

How to use the In-hand Salary Calculator

  1. 1

    Enter your annual CTC and the share of it that is basic salary (the labour codes expect basic to be at least 50% of wages).

  2. 2

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

  3. 3

    Choose PF on the ₹25,000 ceiling (the default for most employers) or on your full basic.

  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 = 12% × min(Basic, ₹25,000) a month (or 12% of full basic if opted)

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: ₹12 lakh CTC

  • Basic 50% = ₹6,00,000 a year (₹50,000 a month). PF on the ₹25,000 ceiling = ₹3,000 a month, or ₹36,000 a year, from both employer and employee.
  • Gross salary = ₹12,00,000 − ₹36,000 = ₹11,64,000. Taxable in the new regime = ₹10,89,000, which is covered by the rebate, so income tax is nil.
  • In-hand = ₹11,64,000 − ₹36,000 PF − ₹2,400 professional tax = ₹11,25,600 a year, or ₹93,800 a month.

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.

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.