CTC to In-Hand Salary Calculator
Accurate monthly and annual take-home salary estimates for Indian tech professionals under FY 2026-27 statutory rules.
How CTC is Converted to Monthly In-Hand Salary
Cost to Company (CTC) represents the total annual expenditure an employer incurs on an employee. It differs substantially from monthly bank credit because of three statutory layers:
Deducted before Gross Pay. Includes 12% Employer EPF contribution and 4.81% Gratuity accrual calculated on your Basic wage.
Subtracted from your Gross Pay. Includes 12% Employee EPF and State-level Professional Tax (typically ₹200/month).
Withheld monthly by payroll based on your chosen regime (Old vs New), applicable tax slabs, and declared deductions.
Frequently Asked Questions
Everything you need to know about salary structures, tax rules, and deductions.
Annual CTC includes employer retirement provisions (Employer EPF at 12% and statutory Gratuity accrual at ~4.81% of basic), compulsory employee deductions (Employee EPF and State Professional Tax), and Income Tax TDS, which are all deducted before the net sum reaches your bank account.
Under the New Tax Regime for FY 2026-27, the standard deduction is ₹75,000. Under the Old Tax Regime, it remains ₹50,000.
Yes. Under Section 87A of the New Tax Regime, resident individuals with net taxable income up to ₹12,00,000 receive a full tax rebate, bringing final income tax liability to zero.
The new labour codes mandate that basic wages must constitute at least 50% of total CTC. If an employer previously kept basic low (30% to 40%) to maximize take-home, raising basic to 50% increases monthly PF and gratuity allocations, which slightly reduces immediate take-home pay while significantly boosting retirement savings.