Calculate your Take Home salary in a click! Know the detailed salary breakup of your CTC
The term in-hand salary is synonymous with take-home salary or net salary. The sum total of money deposited into your bank account after all the deductions like TDS, PF, professional tax, and others is referred to as in-hand salary. In-hand salary will definitely be less than the Cost to Company (CTC) because CTC contains expenses that will not come to your pocket as money.
Term | What it means |
CTC (Cost to Company) | Everything the employer spends on you in a year: basic, allowances, bonus, employer PF, gratuity provision, insurance. The offer-letter number. |
Gross salary | CTC minus the employer-side costs (employer PF, gratuity provision). What accrues to you before your own deductions. |
In-hand / take-home salary | Gross minus employee PF, professional tax, and income tax (TDS). What actually hits your bank account. |
As a rule of thumb, take-home is roughly 70–85% of CTC – higher at incomes below the tax threshold, lower at senior levels where the 25–30% slabs apply. The gap is not money lost: employer PF and gratuity accrue to you later; tax and your own PF account for the rest.
Zimyo Payroll gives every employee a self-serve salary breakdown – CTC structure, deductions, TDS projection – inside the ESS portal and automates the payroll math behind it.
The full chain from CTC to in-hand salary:
Assumptions: basic = 40% of CTC (₹4,80,000), PF computed on the ₹15,000 statutory wage ceiling (₹1,800/month each side), professional tax ₹2,400/year, no variable pay.
Step | Calculation | Amount |
Employer PF (annual) | ₹1,800 × 12 | ₹21,600 |
Gratuity provision | 4.81% × 4,80,000 | ₹23,088 |
Gross salary | 12,00,000 − 21,600 − 23,088 | ₹11,55,312 |
Taxable income | 11,55,312 − 75,000 (standard deduction) | ₹10,80,312 |
Income tax | Below ₹12 lakh → Section 87A rebate | ₹0 |
Employee PF + professional tax | 21,600 + 2,400 | ₹24,000 |
Annual in-hand salary | 11,55,312 − 24,000 | ₹11,31,312 |
Monthly in-hand salary | 11,31,312 ÷ 12 | ₹94,276 |
If your employer computes PF on full basic instead of the ₹15,000 ceiling, both PF lines rise and take-home falls, which is why two people with identical CTCs can have different in-hand salaries. Zimyo’s calculator lets you enter your actual PF amounts from your payslip.
Taxable income slab | Rate |
Up to ₹4,00,000 | Nil |
₹4,00,001 – ₹8,00,000 | 5% |
₹8,00,001 – ₹12,00,000 | 10% |
₹12,00,001 – ₹16,00,000 | 15% |
₹16,00,001 – ₹20,00,000 | 20% |
₹20,00,001 – ₹24,00,000 | 25% |
Above ₹24,00,000 | 30% |
The old regime keeps the ₹2.5 lakh exemption limit with 5%/20%/30% slabs, a ₹50,000 standard deduction, and the full menu of exemptions – HRA under Section 10(13A), 80C up to ₹1.5 lakh, 80D, and home loan interest. It usually wins only when your total exemptions and deductions are substantial (metro HRA plus full 80C plus home loan interest). With few deductions, the new regime almost always yields a higher in-hand salary. Run both before choosing, you pick a regime each financial year.
Deduction | Rate / amount | Notes |
Employee Provident Fund (EPF) | 12% of Basic + DA | Statutory computation on a ₹15,000/month wage ceiling = ₹1,800/month; many employers deduct 12% of full basic instead — check your payslip |
Employer PF (inside CTC) | 12% of Basic + DA | Part of CTC but never paid as monthly cash; 8.33% goes to EPS (pension), 3.67% to EPF |
Gratuity provision (inside CTC) | ≈4.81% of basic | Provisioned in CTC; paid only on exit after 5 years of eligible service |
Professional tax | State-specific | Maharashtra ₹2,500/yr; Karnataka and West Bengal ₹2,400/yr; Delhi, UP, Haryana and Rajasthan levy none |
ESI | 0.75% of gross (employee) | Applies only if gross salary is ₹21,000/month or less; employer pays 3.25% |
Income tax (TDS) | Per regime slabs | Deducted monthly by the employer against your projected annual tax |
Other recoveries | Actuals | Loan EMIs routed via payroll, insurance premiums, advances, LWF |
Variable pay and bonuses sit inside your CTC but are paid quarterly or annually, if at all. A 15% variable component means your fixed monthly salary is built on only 85% of CTC. Enter the variable portion in the calculator’s bonus field to see your true fixed monthly take-home, and treat payouts as a bonus when they arrive, not as budgetable income.
Let’s break down the components used in an in hand salary calculator to help you understand the figures:
Your basic salary is the fundamental pay you receive for your work. It typically accounts for 50% of your CTC. For example, if your CTC is ₹5,00,000, your basic salary might be ₹2,50,000 annually.
HRA or House Rent Allowance is an allowance given to employees to help with living expenses. It’s usually calculated as 40% or 50% of your basic salary, depending on your company’s policies.
Some companies provide incentives and bonuses based on performance. These payments can be added to your salary, though they might not be guaranteed every month.
Employee benefits may include health insurance, life insurance, or other perks offered by the company. These are deducted from your CTC and contribute to your overall compensation.
Provident Fund (PF) contributions are part of your retirement benefits. Employees contribute 12% of their basic salary to the PF, which is matched by the employer.
Perquisites are additional benefits provided by the company, such as company cars, phone bills, or housing.
Annual CTC | Approx. monthly in-hand | Effective tax |
₹6 lakh | ₹44,000 – 45,000 | Nil (87A rebate) |
₹10 lakh | ₹71,000 – 78,000 | Nil (87A rebate) |
₹12 lakh | ₹85,000 – 94,000 | Nil to negligible |
₹16 lakh | ₹1,06,000 – 1,18,000 | ≈₹90,000 – 1,05,000/yr |
₹20 lakh | ₹1,34,000 – 1,45,000 | ≈₹1,64,000 – 1,80,000/yr |
Ranges reflect the two common PF conventions (statutory ₹15,000 ceiling vs full basic) and a 40–50% basic split; no variable pay assumed. Your exact figure depends on your salary structure; use the calculator above with your payslip values.
An in hand salary calculator is an essential tool for both employees and employers. It helps to understand salary breakdowns and estimate take-home pay, while also ensuring compliance with tax laws.
By using a salary and take home salary calculator, you can make informed decisions—whether it’s about your finances, salary negotiations, or budgeting. So, next time you wonder about your in-hand salary, simply use a CTC to in hand salary calculator to get a clearer picture of your take-home amount!
Now that you know how an in hand salary calculator works, have you tried using a take home salary calculator to calculate your salary yet?
Gross Salary = CTC – Employer’s PF – Gratuity Provision. In-hand Salary = Gross Salary – Employee’s PF – Professional Tax – Income Tax. Based on a ₹12 lakh CTC in the new system, this will come out to approximately ₹85,000 to ₹94,000 per month.
Yes. In-hand salary, take-home salary, and net salary all mean the same figure, the amount credited to your account after deductions. The tools differ only in name.
About ₹71,000 to ₹78,000 per month in the new system for the financial year 2026-27, without considering any variable pay. The income tax in this case will be zero as there is a Section 87A rebate applicable at this level. This is based on how your company calculates PF contribution.
Yes, approximately, a salary calculator from take-home works the chain in reverse. Divide annual take-home by roughly 0.70–0.85 for a CTC estimate, then refine with your actual PF, professional tax, and tax slab. Recruiters use the same reverse math to compare offers.
Under the new regime, yes – the Section 87A rebate reduces tax to zero for taxable income up to ₹12 lakh, which means up to ₹12.75 lakh of gross salary with the standard deduction. PF and professional tax still apply, so in-hand stays below gross.
