Salary Calculator
Convert your CTC into in hand monthly and annual take home pay.
Inputs
Most Indian companies set basic at 40 to 50 percent of CTC.
Typically 50 percent in metros and 40 percent in non metros.
Capped at ₹2,500 per year in most states.
Monthly in hand
Salary structure
CTC composition
Cost to Company (CTC) is the total annual cost an employer incurs to keep you on the payroll. It includes your basic salary, HRA, special allowance, both employer and employee provident fund contributions, gratuity, insurance premiums, and any other benefits. In hand salary is what actually lands in your bank account each month after statutory deductions and income tax.
Common salary components
Basic salary is usually 40 to 50 percent of CTC. House Rent Allowance (HRA) is 40 to 50 percent of basic, depending on whether you live in a metro. Special allowance is the remaining cushion that balances out the structure.
Provident fund contributions are 12 percent of basic from both the employee and the employer. Gratuity is around 4.81 percent of basic. Both PF and gratuity are part of CTC but are not paid out monthly, they accumulate for retirement and exit benefits.
How in hand salary is calculated
Start with gross salary, which is basic plus HRA plus special allowance. Subtract employee PF, professional tax, and the monthly TDS on income tax. The result is your in hand salary. Note that employer PF and gratuity reduce your CTC but not your in hand pay, since you do not actually receive them every month.
Worked example
On a ₹12 Lakh CTC, with 40 percent basic and 50 percent HRA, you would have a basic of ₹4,80,000, HRA of ₹2,40,000, and a special allowance making up the rest. After 12 percent PF, ₹2,400 annual professional tax, and income tax under the new regime, the monthly in hand typically lands around ₹85,000 to ₹90,000. The exact figure depends on rent claimed under HRA, employer contributions, and other deductions.
Frequently asked questions
CTC includes provident fund (both sides), gratuity, insurance, and other benefits that you never see in your bank account each month. Subtract these and the income tax to arrive at your in hand pay.
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