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 salary for FY 2026-27 with Provident Fund, ESI where it applies, 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. Under the Labour Codes, PF, ESI, gratuity and bonus are all calculated on one uniform "wages" base; only Professional Tax and income tax work on gross salary. 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 contributions (PF, ESI, statutory bonus, gratuity) − employee PF − employee ESI − Professional Tax − income tax
Only CTC 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 contributions — PF, gratuity accrual, and ESI and statutory bonus where your wages are ₹21,000 a month or less — are counted inside your CTC but never paid to you as monthly salary. Remove them and you have gross salary.
- Employee PF, employee ESI (where it applies), Professional Tax and income tax (TDS) are deducted from gross salary on the payslip. What is left is your in-hand, also called take-home or net salary.
- The bases differ: PF, ESI, gratuity and bonus are all calculated on wages under the Labour Codes; only Professional Tax and income tax work on gross salary.
Several of those terms depend on choices your employer makes — the Basic percentage, whether PF is applied to actual wages 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, taxable income moves past the new regime's ₹12 lakh rebate limit and the marginal tax rate climbs. A ₹12 lakh package is close to the largest one whose taxable income still stays inside that rebate.
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 your wages — Basic, DA, retaining allowance and any other pay not on the Code's exclusion list, plus any amount added back under the Labour Code 50% test — 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. If your wages are ₹21,000 a month or less, employer ESI (3.25% of wages) and statutory bonus also sit inside CTC; the bonus is paid once a year, not monthly.
2. Gratuity accrual never reaches you either
Gratuity accrues at 4.81% of wages 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, pro rata, if you are on a fixed-term contract. Until then it is a number on paper.
3. Your own PF and ESI come off the payslip
A further 12% of wages 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. If your wages are ₹21,000 a month or less, ESI of 0.75% of wages is deducted too.
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.
Comparing Two Offers or an Increment
Compare offers on in-hand, not on CTC. Run both packages through the calculator with your own state and regime, then check three things the headline CTC hides: how much is variable pay rather than fixed, whether PF is on actual wages or capped at ₹25,000, and whether gratuity is loaded into CTC. The same applies to an increment — a 10% rise in CTC rarely means a 10% rise in take-home, because PF, gratuity and tax rise with it. Use the salary hike calculator to see what a raise does to your monthly credit.
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.
September 2026 was a split month: PF for 1–16 September was calculated on ₹15,000 and for 17–30 September on ₹25,000. October 2026 is the first full month on the new ceiling — and EPFO allowed employers to recover any September shortfall in the October payroll, so your October PF deduction may be slightly higher than usual for one month. See PF wage ceiling ₹25,000: September split, ECR and examples.
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.
Earning ₹15,000 to ₹25,000? PF now applies to you
Mandatory PF coverage now extends to employees whose wages are up to ₹25,000 a month in covered establishments, subject to the scheme's conditions — the government expects more than 51 lakh additional employees to come under it. If your PF wages are ₹20,000, for example, your own contribution is 12%, or ₹2,400 a month, matched by your employer. Your in-hand falls by that amount, and your retirement savings and pension coverage start growing.
ESI is unchanged at ₹21,000 — but tested on wages
The ESI ceiling has not moved: it is still ₹21,000 a month (₹25,000 for employees with disabilities), with 0.75% of wages deducted from you and 3.25% paid by your employer. What changed is the base. ESI, like PF, gratuity and bonus, is now tested on statutory wages rather than gross salary, so a ₹30,000 gross earner whose wages are below ₹21,000 can still have ESI deducted. Run your own structure in the calculator to see whether it applies to you.
New income-tax law, same slabs
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Slabs are unchanged, but the law now speaks of the "Tax Year" — Tax Year 2026-27 covers April 2026 to March 2027 — and your annual salary TDS certificate for this year will be Form 130 instead of Form 16. In the old regime, Bengaluru, Hyderabad, Pune and Ahmedabad now join Delhi, Mumbai, Kolkata and Chennai at the 50% HRA exemption limit. Section numbers on this page (80C, 87A, 10(13A) and so on) are the familiar ones from the 1961 Act; the 2025 Act renumbers them.
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, ESI where it applies, Professional Tax and income tax. It is what remains of gross salary, and gross salary is what remains of CTC once the employer's contributions — PF, gratuity, and ESI and statutory bonus where they apply — 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.
How much is the in-hand salary for 12 LPA?
About ₹91,451 a month in the new regime and ₹85,959 in the old, on the same standard structure. That is ₹10,97,312 a year — roughly 91.4% of the package, the highest share of any level in the table above.
Why is my in-hand salary so much less than my CTC?
Because CTC includes things you never receive as monthly pay — your employer's PF contribution and the gratuity provision, plus employer ESI and statutory bonus where your wages are ₹21,000 a month or less — and more comes out of your payslip: your own PF, ESI where it applies, 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.
What is my monthly salary without tax?
It is your gross salary minus your own PF, ESI and Professional Tax, before income tax (TDS) is deducted. For ₹50,000 gross with PF on the ₹25,000 ceiling and ₹200 Professional Tax, it is ₹46,800 a month. In the new regime TDS at that salary is nil, so your in-hand is the same ₹46,800; at higher salaries the calculator shows the TDS line separately, so you can read both figures.
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 already applied PF to your full actual wages, nothing changed for you.
Why did my in-hand salary change in October 2026?
October 2026 is the first full month under the ₹25,000 PF ceiling, after a split September (1–16 September on ₹15,000, 17–30 September on ₹25,000). Employers were also allowed to recover any extra September employee PF in the October payroll, so October's deduction can be a little higher for that one month.
I earn ₹22,000 a month. Will PF now be deducted?
If your PF wages are ₹25,000 or less and you work in a covered establishment, PF is now mandatory for you, subject to the scheme's conditions. Your contribution is 12% of your PF wages — at ₹22,000, that is ₹2,640 a month — matched by your employer.
Do I lose ESI if my salary is above ₹21,000?
Not necessarily. The ₹21,000 ESI limit is tested on statutory wages, not gross salary, so you can still be covered if your wages are below it even when your gross pay is higher. Where it applies, 0.75% of wages comes off your in-hand and your employer pays 3.25%.
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. Statutory bonus, payable in establishments with 20 or more employees where wages are ₹21,000 a month or less, is also annual; where the accounting year ends on 31 March, FY 2025-26 bonus is due by 30 November 2026. 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. For Tax Year 2026-27, the annual TDS certificate will be Form 130, which replaces Form 16.
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 wages — 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 uniform wage definition in the Code on Wages, 2019 for PF, ESI, gratuity and bonus, 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 — salary for days worked and LOP deductions
- 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 · Gratuity calculator · Professional Tax calculator · HRA exemption calculator
Legal References and Disclaimer
This in-hand salary calculator applies: Section 2(y), Code on Wages, 2019 (uniform wage definition and the 50% exclusion test); the Code on Wages (Central) Rules and Social Security (Central) Rules, 2026, notified 8 May 2026; Section 16, Code on Social Security, 2020 (Provident Fund at 12% of wages, 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% of wages monthly); Section 2(88), Code on Social Security, 2020 (definition of wages, applied to the ₹21,000 ESI coverage 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: October 2026.