Salary / CTC Calculator

Break down CTC into in-hand monthly salary.

Overview

Breaks down annual Cost to Company (CTC) packages into monthly gross earnings, statutory PF/ESI/PT deductions, and net in-hand bank deposits.

Formula & Calculation Method

In-Hand Salary = Gross Monthly Salary - (Employee EPF + Professional Tax + Monthly TDS)

Gross salary equals CTC minus employer PF, gratuity, and insurance. In-hand is gross salary minus employee deductions.

Worked Example: ₹12 Lakh Annual CTC In-Hand Breakdown

Inputs: CTC = ₹12,00,000 per annum | Metro Location | New Tax Regime

  • Employer EPF & Gratuity component = ₹48,000/year; Gross Salary = ₹11,52,000 (₹96,000/month)
  • Employee EPF deduction = ₹3,600/month | Professional Tax = ₹200/month
  • Estimated monthly income tax TDS under New Regime = ₹5,958/month
  • Net in-hand take-home = ₹96,000 - (₹3,600 + ₹200 + ₹5,958) = ₹86,242

Summary: Annual CTC = ₹12,00,000 | Monthly Gross = ₹96,000 | Monthly In-Hand = ₹86,242

Common Use Cases

  • Job Offer Evaluation: Compare true monthly bank credit across multiple corporate job offers.
  • Budgeting & Rent Planning: Base household budgeting on verified monthly in-hand credit rather than CTC.
  • Salary Negotiation: Negotiate for higher fixed basic salary versus volatile annual performance bonuses.

Frequently Asked Questions

What is the difference between CTC and Gross Salary?

CTC includes employer contributions (EPF, gratuity, insurance); Gross Salary is what is credited before employee deductions.

Why is my in-hand salary lower than my gross salary?

Because employee deductions like 12% EPF, Professional Tax, and Income Tax (TDS) are deducted at source.

What is Professional Tax (PT)?

A state-level tax levied on salaried professionals, capped by constitutional mandate at ₹2,500 per year.

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