Framework Updated
| Salary | Monthly (₹) | Annual (₹) |
|---|---|---|
| CTC | 45,000 | 5,40,000 |
| Gross | 41,306 | 4,95,672 |
| Net | 38,669 | 4,64,028 |
| Lowest Tax - New Regime | ||
| Taxable Income | — | 4,20,672 |
| TDS | 0 | 0 |
| Post Tax Net | 38,669 | 4,64,028 |
| Component | Monthly (₹) | Annual (₹) |
|---|---|---|
| CASH EARNING COMPONENTS | ||
| Basic + DA | 21,972 | 2,63,664 |
| HRA | 10,985 | 1,31,820 |
| Conveyance All. | 8,349 | 1,00,188 |
| Total Cash Remuneration | 41,306 | 4,95,672 |
| TOTAL STATUTORY WAGES | 21,972 | 2,63,664 |
| EMPLOYER CONTRIBUTIONS & RETIRAL BENEFITS | ||
| Employer PF | 2,637 | 31,644 |
| Gratuity | 1,057 | 12,684 |
| Total Contributions | 3,694 | 44,328 |
| CTC | 45,000 | 5,40,000 |
| Total Remuneration | 43,943 | 5,27,316 |
| EMPLOYEE DEDUCTIONS | ||
| Employee PF | 2,637 | 31,644 |
| Total Deductions | 2,637 | 31,644 |
| Net Pay | 38,669 | 4,64,028 |
What This In-Hand Salary Calculator Does
You have a CTC figure. You want one number back: what actually reaches your bank account each month. That is what this in-hand salary calculator gives you — type your CTC, pick your state, choose a tax regime, and read your take-home pay for FY 2026-27 with Provident Fund, Professional Tax and TDS already taken out.
It uses the wage rules in force today: the Code on Wages, 2019, the Code on Social Security, 2020 — including the EPF wage ceiling of ₹25,000 that took effect on 17 September 2026 — and the FY 2026-27 slabs under the Income-tax Act, 2025. Both tax regimes are calculated together, so you see which one leaves more in your hand rather than guessing.
It also runs backwards. If you know the take-home you need, switch the pay base to Net, type that figure, and the calculator solves for the CTC that delivers it. That is the number to ask for in a negotiation.
If you want the full component-by-component structure behind these figures — Basic, HRA, allowances, employer contributions — use the salary breakup calculator instead. This page is about the final figure.
In-Hand Salary Formula
In-hand salary = CTC − employer PF − gratuity accrual − employee PF − Professional Tax − income tax
Six terms, and only the first is on your offer letter. The rest is why the number on that letter and the number in your account are so far apart.
- Employer PF and gratuity accrual are counted inside your CTC but are never paid to you. Remove them and you have gross salary.
- Employee PF, Professional Tax and income tax (TDS) come out of gross salary on the payslip. What is left is your in-hand, also called take-home or net salary.
Three of those six terms depend on choices your employer makes — the Basic percentage, whether PF is applied to actual Basic or the statutory ceiling, whether gratuity is loaded into CTC at all. Two identical CTC offers can pay noticeably different amounts because of them.
In-Hand Salary by CTC — ₹5 Lakh to ₹30 Lakh
These figures come straight from the calculator above. Its default structure is used throughout: Basic at 50%, HRA at 50% of Basic, a metro city, Karnataka for Professional Tax, PF applied on the ₹25,000 statutory ceiling, gratuity included in CTC, and no investment declarations. Enter the same CTC and you will see the same numbers.
| Annual CTC | Gross (₹/mo) | In-Hand — New Regime (₹/mo) | In-Hand — Old Regime (₹/mo) |
|---|---|---|---|
| ₹5,00,000 | 36,897 | 34,195 | 34,195 |
| ₹8,00,000 | 62,101 | 58,901 | 58,901 |
| ₹10,00,000 | 78,376 | 75,176 | 72,223 |
| ₹12,00,000 | 94,651 | 91,451 | 85,959 |
| ₹15,00,000 | 1,19,064 | 1,08,665 | 1,06,563 |
| ₹20,00,000 | 1,59,753 | 1,41,958 | 1,37,956 |
| ₹25,00,000 | 2,00,440 | 1,72,751 | 1,69,122 |
| ₹30,00,000 | 2,41,129 | 2,01,047 | 2,00,290 |
Read the first two rows carefully. At ₹5 lakh and ₹8 lakh CTC both regimes pay the same, because the Section 87A rebate wipes out the tax either way. The regimes only start to separate once taxable income clears the rebate thresholds.
Then look at the last column as CTC rises. The old regime trails at every level here, but the gap closes — ₹5,492 a month at ₹12 lakh, ₹757 a month at ₹30 lakh. That is the crossover approaching. These rows carry no 80C, no 80D, no home loan interest and no NPS. Add your real declarations in the calculator and the old regime catches up, then passes.
Annual In-Hand at a Glance
| Annual CTC | Annual In-Hand (New Regime) | You Keep |
|---|---|---|
| ₹5,00,000 | ₹4,10,240 | 82.0% |
| ₹8,00,000 | ₹7,06,712 | 88.3% |
| ₹10,00,000 | ₹9,02,012 | 90.2% |
| ₹12,00,000 | ₹10,97,312 | 91.4% |
| ₹15,00,000 | ₹13,03,880 | 86.9% |
| ₹20,00,000 | ₹17,03,396 | 85.2% |
| ₹25,00,000 | ₹20,72,912 | 82.9% |
| ₹30,00,000 | ₹24,12,464 | 80.4% |
The share you keep peaks around ₹12 lakh and falls away on either side. Below that, fixed deductions like PF and Professional Tax eat a larger slice of a smaller salary. Above it, the rebate is gone and the marginal tax rate climbs. ₹12 lakh is the sweet spot of the current structure, not a coincidence — it is exactly where the new regime's rebate ceiling sits.
Why Your In-Hand Is Lower Than You Expected
The gap between CTC and take-home is typically 10% to 20%. Four things create it, and only two of them are tax.
1. Employer PF never reaches you
Your employer contributes 12% of Basic to your Provident Fund. It sits inside CTC as a cost, but it goes into your PF account, not your bank account. Where the statutory ceiling is applied, that is ₹3,000 a month — ₹36,000 a year removed from CTC before anything else happens.
2. Gratuity accrual never reaches you either
Gratuity accrues at 4.81% of Basic per month under Section 53 of the Code on Social Security, 2020. Most employers load it into CTC. You receive it only when you leave, and only after five years of continuous service — one year if you are on a fixed-term contract. Until then it is a number on paper.
3. Your own PF comes off the payslip
A further 12% of Basic is deducted from you and matched into the same fund. This is your money and it is saved, not lost — but it is not spendable this month. With PF on the ceiling, that is another ₹3,000 gone from what you can actually use.
4. Professional Tax and TDS
Professional Tax is small — at most ₹2,500 a year anywhere in India, capped by Article 276 of the Constitution. TDS is the large one, and it is the only part of this list you can change through your own decisions, by choosing the regime and the deductions that suit you.
Put together: at ₹10 lakh CTC, ₹59,484 a year disappears into employer PF and gratuity before your payslip is even drawn, and a further ₹38,500 comes off it. Nothing has gone wrong — your CTC was simply never the same thing as your salary.
Old vs New Regime — Which Leaves More In Hand
For FY 2026-27 the new regime is the default. You may opt into the old regime each year, and for salaried employees that choice can be changed annually.
| Feature | New Regime | Old Regime |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| Zero-tax threshold (Section 87A) | ₹12,00,000 taxable | ₹5,00,000 taxable |
| Maximum rebate | ₹60,000 | ₹12,500 |
| HRA exemption | Not available | Section 10(13A) |
| Section 80C | Not available | Up to ₹1,50,000 |
| Home loan interest | Not available | Section 24(b) |
| Employer NPS | Section 80CCD(2) | Section 80CCD(2) |
The practical test is simple. Add up what you can actually claim in the old regime — HRA exemption, 80C, 80D, home loan interest. If that total is below roughly ₹4 lakh, the new regime almost certainly pays you more. Above ₹5 lakh, the old regime starts to win. In between, it depends on your exact numbers, which is what the calculator is for.
One trap worth knowing. The new regime's rebate tapers through marginal relief just past ₹12,00,000, so crossing it costs a little rather than a lot. The old regime's ₹5,00,000 threshold has no such relief — exceed it by one rupee and tax applies from ₹2,50,000 upward. For the full slab tables and a deeper comparison, use the income tax calculator.
What CTC Do You Need for the Take-Home You Want
This is the question that matters in a salary negotiation, and it is the one almost no calculator answers. Switch the pay base from CTC to Net, type the monthly take-home you want, and the calculator solves backwards for the package required.
| Target In-Hand (₹/mo) | CTC Required (₹/mo) | CTC Required (₹/yr) |
|---|---|---|
| ₹50,000 | ₹57,552 | ₹6,90,624 |
| ₹75,000 | ₹83,153 | ₹9,97,836 |
| ₹1,00,000 | ₹1,08,754 | ₹13,05,048 |
| ₹1,50,000 | ₹1,77,065 | ₹21,24,780 |
| ₹2,00,000 | ₹2,48,443 | ₹29,81,316 |
New regime, same default structure as above. Notice how the multiplier grows: ₹50,000 in hand needs about 1.15× that in CTC, while ₹2,00,000 needs about 1.24×. Every rupee of extra CTC at the top is taxed harder, so a target take-home costs progressively more to reach.
What Changed for FY 2026-27
The EPF wage ceiling rose to ₹25,000
On 17 September 2026, notification S.O. 5109(E) raised the EPF wage ceiling from ₹15,000 to ₹25,000 — the first increase since 2014, approved by the Union Cabinet the day before.
If your employer applies PF on the ceiling, your deduction rose from ₹1,800 to ₹3,000 a month, with a matching increase from your employer. Your take-home fell by ₹1,200 a month and ₹2,400 a month more now goes into your retirement corpus. Nothing was lost — it moved. But if your salary dropped this month and nobody explained why, this is why. Any calculator still showing ₹1,800 is working from the old ceiling.
The employer's ₹3,000 splits between the Employees' Pension Scheme (8.33%, ₹2,083) and your EPF account (3.67%, ₹917). For interest and maturity projections, use the PF / EPF calculator.
Your state still changes the answer
Professional Tax is a state levy, and the differences are real. Karnataka and Maharashtra charge ₹200 monthly with ₹300 in February — ₹2,500 for the year, not ₹2,400. Tamil Nadu and Kerala bill half-yearly. Odisha repealed the tax from 1 April 2026; Chhattisgarh has exempted salaried employees since 2011; Goa has never levied it. Maharashtra exempts women earning up to ₹25,000 a month.
The swing between the most and least expensive state is about ₹208 a month. Small, but it is the difference between an estimate and your actual payslip — which is why the calculator asks for your state before it gives you a figure. Full slabs are in the state-wise Professional Tax calculator.
How to Use This Calculator
- Enter your CTC. Use the Monthly / Yearly toggle to match whichever figure your offer letter states.
- Select your state — Professional Tax is wrong without it.
- Choose your tax regime. Switch between New and Old and watch the in-hand figure move.
- Read the summary: CTC, Gross, Net, taxable income, TDS and your post-tax take-home, monthly and annually.
- Open View Full Breakup if you want to see the components behind the figure.
- To work backwards, switch the pay base from CTC to Net and type the take-home you are aiming for.
- Export with Copy, Excel or PDF when you need to compare two offers side by side.
Frequently Asked Questions
What is in-hand salary?
In-hand salary is the amount credited to your bank account after every deduction — your Provident Fund contribution, Professional Tax and income tax. It is what remains of gross salary, and gross salary is what remains of CTC once the employer's PF contribution and gratuity accrual are removed.
How much is the in-hand salary for 10 LPA in India?
About ₹75,176 a month in the new regime and ₹72,223 in the old, on a standard structure with Basic at 50%, PF on the statutory ceiling and Karnataka Professional Tax. That is ₹9,02,012 a year against a ₹10,00,000 package — you keep roughly 90%. Your own figure will differ with your state, your employer's PF policy and your declared investments.
Why is my in-hand salary so much less than my CTC?
Because CTC includes two things you never receive — your employer's PF contribution and the gratuity provision — and three more come out of your payslip: your own PF, Professional Tax and TDS. Together they take 10% to 20% of CTC. At ₹10 lakh, about ₹59,484 a year never reaches your payslip at all, and a further ₹38,500 is deducted from it.
Is in-hand salary the same as take-home salary?
Yes. In-hand salary, take-home salary and net salary all mean the same thing — the amount credited after all deductions. Gross salary is different: it is the figure before your own deductions, and it is always higher.
Which tax regime gives a higher in-hand salary in FY 2026-27?
With no investment declarations, the new regime pays more at every CTC level — ₹2,953 a month more at ₹10 lakh, ₹5,492 at ₹12 lakh, narrowing to ₹757 at ₹30 lakh. The old regime overtakes once your HRA exemption, Section 80C, 80D and home loan interest together exceed roughly ₹4 to ₹5 lakh. Enter your actual deductions in the calculator rather than relying on a rule of thumb.
How much CTC do I need for ₹1 lakh in hand per month?
About ₹13,05,048 a year, or ₹1,08,754 a month, in the new regime on a standard structure. For ₹50,000 in hand you need roughly ₹6,90,624; for ₹2,00,000 you need about ₹29,81,316. The ratio worsens as the figure rises, because the top of your package is taxed hardest.
Did the new ₹25,000 PF ceiling reduce my in-hand salary?
If your employer applies PF on the ceiling, yes — by ₹1,200 a month. The deduction rose from ₹1,800 to ₹3,000 when the ceiling moved from ₹15,000 to ₹25,000 on 17 September 2026. Your employer's matching contribution rose by the same amount, so ₹2,400 a month more is now going into your retirement savings. If your employer applies PF to actual Basic instead, nothing changed for you.
Does in-hand salary include bonus and variable pay?
No. In-hand salary is your regular monthly credit. A performance bonus or variable pay component is paid separately — quarterly or annually — and is taxed when paid. Counting an annual variable inside a monthly take-home figure is the single most common reason an offer feels smaller than expected once you start.
Is TDS deducted from salary every month?
Yes. Your employer estimates your annual tax liability and deducts it in twelve parts under Section 192. If you declare investments late in the year, the earlier months are over-deducted and the later months correct for it — which is why take-home can change mid-year without any change in salary.
Does in-hand salary change from state to state?
Only through Professional Tax, and only by about ₹208 a month between the highest and lowest states. Income tax and PF are national. But Professional Tax rules vary a great deal in form — Karnataka and Maharashtra bill monthly with a higher February, Tamil Nadu and Kerala bill half-yearly, and Odisha, Chhattisgarh and Goa do not levy it on salaried employees at all.
How can I increase my in-hand salary without a raise?
Three levers exist. Choose the tax regime that fits your actual deductions. Ask whether your employer applies PF to the statutory ceiling rather than actual Basic — the ceiling option leaves more in hand each month, though less in your retirement corpus. And declare your investments early in the financial year so TDS is spread evenly instead of concentrated in the final quarter. Whether more take-home now is worth less saving later is a decision only you can make.
Is this in-hand salary calculator accurate for FY 2026-27?
It applies the wage definition in the Code on Wages, 2019, the PF and gratuity rules in the Code on Social Security, 2020 including the ₹25,000 ceiling effective 17 September 2026, the FY 2026-27 slabs and Section 87A rebate under the Income-tax Act, 2025, and current state Professional Tax schedules. It is an estimate for planning: your payslip also depends on your employer's structure and your declared investments.
Related Salary Calculators
- Salary breakup calculator — the full component structure behind this figure
- Monthly salary calculator — monthly figures from an annual package
- Income tax calculator — old vs new regime slab by slab
- Salary hike calculator — what a percentage increase does to your take-home
- Salary slip generator — turn these figures into a payslip
- PF / EPF calculator · Professional Tax calculator · HRA exemption calculator
Legal References and Disclaimer
This in-hand salary calculator applies: Section 2(y), Code on Wages, 2019 (wage definition and the 50% floor); Section 16, Code on Social Security, 2020 (Provident Fund at 12%, wage ceiling ₹25,000 per S.O. 5109(E) effective 17 September 2026); Section 53, Code on Social Security, 2020 (gratuity accrual at 4.81% monthly); Section 2(88), Code on Social Security, 2020 (ESI, ₹21,000 wage ceiling); Section 192, Income-tax Act (TDS on salary); Section 10(13A) (HRA exemption, old regime); the Income-tax Act, 2025 slabs, Section 87A rebate and surcharge tables for FY 2026-27; Article 276 of the Constitution and state Professional Tax Acts as notified.
This tool provides an estimate for planning purposes only and does not constitute tax, legal or financial advice. Your actual in-hand salary depends on your employer's salary structure, your declared investments, and the rules in force on your payslip date. Consult a qualified tax professional or your payroll team for exact figures.
Last verified for FY 2026-27 slabs and rates: September 2026.