Salary Calculator (CTC to In-Hand)
Convert your annual CTC into a monthly in-hand estimate, with the basic, PF, gratuity and professional tax breakup. Then generate a matching salary slip.
Excludes income tax (TDS), which depends on your tax regime, declarations and investments.
Generate my salary slip →How in-hand salary is calculated from CTC
Your in-hand salary is what reaches your account each month after statutory deductions. It is always lower than CTC divided by twelve, because CTC includes amounts you never receive directly. The calculation works in three steps: start with CTC, remove the employer contributions (employer PF and gratuity) to arrive at gross salary, then subtract employee deductions (employee PF and professional tax). What remains is your in-hand pay before income tax.
CTC vs gross vs in-hand salary
These three numbers are often confused, but they are different points in the same calculation.
| Term | What it means |
|---|---|
| CTC | Total cost to the company, including employer PF, gratuity and benefits |
| Gross salary | CTC minus employer contributions, before your own deductions |
| In-hand salary | Gross minus employee PF, professional tax and income tax |
The components of your salary
- Basic pay: usually 40% to 50% of CTC. Most other components are calculated from it.
- HRA: house rent allowance, often a percentage of basic, partly exempt if you pay rent.
- Employer PF: the company's provident fund contribution, part of CTC but not paid to you.
- Gratuity: a retirement benefit accrued each year, again inside CTC.
- Employee PF: 12% of basic, deducted from your salary into your PF account.
- Professional tax: a small state levy, up to Rs 200 per month in most states.
A note on income tax
The calculator shows in-hand pay before income tax, because tax deducted at source (TDS) depends on your chosen tax regime, your declared investments and exemptions such as HRA. To reduce your taxable salary, employees on the old regime commonly claim HRA. Work out that exemption with the HRA calculator and keep rent receipts as proof.
Generate a matching salary slip
Once you know the breakup, generate a salary slip with the same basic, HRA, PF and professional tax figures. To understand every line on a payslip, read the salary slip format guide.
Frequently asked questions
How do I calculate in-hand salary from CTC?
Start with CTC, remove the employer's contributions (employer PF and gratuity) to get gross salary, then subtract the employee's PF and professional tax. The result is your in-hand salary before income tax. The calculator does this from your CTC and basic percentage.
What is the difference between CTC and in-hand salary?
CTC is the total cost to the company, including employer PF, gratuity and other benefits you never see in your account. In-hand salary is what actually reaches you each month after statutory deductions, and is always lower than CTC divided by 12.
Why is my in-hand salary lower than CTC divided by 12?
Because CTC includes employer contributions (PF and gratuity) that are not paid to you, plus your own deductions like employee PF, professional tax and income tax are taken out of the gross.
Does this include income tax?
No. The calculator shows in-hand before income tax, because TDS depends on your chosen tax regime, declared investments and exemptions. Treat the figure as your salary before tax is deducted.
This is a general estimate, not tax or payroll advice. Actual figures depend on your salary structure and employer policy.