"CTC ₹8 lakh" and "₹52,000 in hand" describe the same job, and the gap is where most salary negotiations go wrong. CTC includes the employer's PF, gratuity provision, insurance and sometimes a variable bonus that arrives in March or never. This calculator converts CTC to a monthly take-home the way an Indian payroll does it: basic and HRA structure, employer and employee PF on the ₹25,000 ceiling or full basic, ESI where applicable, state professional tax, and TDS under the old or new regime. It runs in your browser and nothing is stored.
Where the CTC goes
| Component | Typical share of CTC | Paid monthly? |
|---|---|---|
| Basic | 40–50% | Yes |
| HRA | 40–50% of basic | Yes |
| Special / flexible allowances | Balance | Yes |
| Employer PF | 12% of basic (or of ₹25,000, if the company caps it) | No — goes to your EPF account |
| Gratuity provision | 4.81% of basic | No — paid on exit after 5 years |
| Variable pay / bonus | 0–20% | Annually or quarterly |
| Insurance, meals, transport | Small | In kind |
From gross monthly pay, payroll deducts employee PF (12% of basic up to the ceiling), ESI (0.75% if gross ≤ ₹21,000), professional tax (state slab, ≤ ₹2,500 a year), and TDS on the projected annual income. The step-by-step arithmetic is in CTC to in-hand salary: exactly where the money goes.
How to use the calculator
- Enter annual CTC (or monthly gross if you know it) and how basic and HRA are structured — 40% or 50% basic is common.
- Say whether employer PF and gratuity are inside the CTC (they usually are) and whether PF is capped at the ₹25,000 wage ceiling.
- Choose your state for professional tax and the tax regime; the income tax calculator helps you decide between old and new.
- Read the monthly in-hand and the full breakdown: gross, each deduction, and the annual TDS.
- Test offers side by side by changing CTC and structure — a higher basic raises PF and lowers take-home but grows your retirement corpus.
The 2026 EPF ceiling and your take-home
The statutory EPF wage ceiling rose from ₹15,000 to ₹25,000 on 17 September 2026. If your basic is ₹22,000 and your employer previously capped PF at ₹15,000, both contributions now apply to the full ₹22,000: your deduction rises from ₹1,800 to ₹2,640 a month, and the employer's share rises equally — money that stays yours, but not in hand. The change and who is newly covered are explained in EPF wage ceiling is now ₹25,000.
New regime vs old on the payslip
Under the new regime, salary up to ₹12.75 lakh (₹12 lakh plus the ₹75,000 standard deduction) attracts no tax, so TDS is zero and take-home is simply gross minus PF, ESI and PT. Under the old regime, HRA exemption, 80C and home-loan interest can bring tax down further for higher salaries — the crossover is compared in Old vs new tax regime for FY 2026-27. Tell payroll your regime in April; it can be changed at filing if you have no business income.
Negotiation tips
- Ask for the structure, not just the CTC: fixed vs variable, and whether employer PF and gratuity are inside.
- A ₹1 lakh raise in variable pay is worth much less than ₹1 lakh in fixed.
- Joining mid-year? TDS is computed on the salary for the remaining months, so early-month take-home may look higher than the steady state.
- Reimbursements (fuel, phone, books) paid against bills are tax-free and raise effective take-home.
Related tools
- Income tax calculator — old vs new regime for your salary.
- HRA exemption calculator — the biggest old-regime saver for renters.
- Professional tax calculator — the state deduction line.
- EPF & gratuity calculator — what the "invisible" CTC becomes at retirement.
- Notice period calculator — if the offer is tempting enough to leave.
- Offer letter generator — for employers issuing the offer behind the CTC.