Take-Home Salary Calculator
Turn your annual CTC into your real monthly in-hand salary. This calculator subtracts EPF, professional tax, gratuity and income tax (TDS) under the new regime to show exactly what lands in your bank account — with a full breakdown.
How take-home salary is calculated
Your CTC (Cost to Company) includes amounts the employer spends that never reach your bank account — such as its EPF contribution and the gratuity provision. Your in-hand salary is what remains after these and your own statutory deductions:
| Step | What happens |
|---|---|
| Gross salary | CTC − employer EPF (12% of basic) − gratuity (4.81% of basic) |
| Less: Employee EPF | 12% of basic pay |
| Less: Professional tax | State levy, up to about ₹2,500 a year |
| Less: Income tax (TDS) | On gross salary minus the ₹75,000 standard deduction (new regime) |
| = In-hand salary | Your net annual / monthly take-home |
Worked example
On a CTC of ₹12,00,000 with basic at 50%: basic is ₹6,00,000. Employer EPF (₹72,000) and gratuity (₹28,860) come out of CTC, leaving a gross of about ₹10,99,140. After employee EPF (₹72,000), professional tax (₹2,400) and income tax, the in-hand works out to roughly ₹85,000 per month — try your own figures above.
Good to know
Why basic % matters
A higher basic raises EPF and gratuity (long-term savings) but lowers immediate in-hand pay. The new wage code requires basic to be at least 50% of CTC.
EPF ceiling
EPF is mandatory on basic up to ₹15,000 a month. Many employers contribute 12% on full basic; use the capped option if yours limits it to the ceiling.
Professional tax
This is a state tax, around ₹2,400–₹2,500 a year in states that levy it. States such as Delhi, Haryana and UP do not charge it — set it to 0.
Related tools
See our HRA Calculator, Gratuity Calculator and Advance Tax Calculator.
Frequently asked questions
What is the difference between CTC and in-hand salary?
CTC is the total annual cost to the employer, including its EPF contribution and gratuity provision. In-hand salary is what reaches your bank account after employer contributions, your own EPF, professional tax and income tax are removed.
How much is deducted from salary for EPF?
Employees contribute 12% of basic pay to EPF, matched by the employer. EPF is mandatory on basic up to the wage ceiling of ₹15,000 per month.
Which tax regime does this calculator use?
It uses the new regime with a ₹75,000 standard deduction and full rebate up to ₹12 lakh taxable income. For old-regime planning with HRA and 80C, use our regime and HRA calculators.
Is professional tax the same everywhere?
No. It is a state tax of up to about ₹2,500 a year and is not levied at all in several states such as Delhi, Haryana and Uttar Pradesh.
Does a higher basic salary reduce my take-home?
Yes, slightly. A higher basic increases EPF and gratuity, which are savings, so a little less reaches your bank account each month while your long-term corpus grows.
Is gratuity deducted from my salary?
No. Gratuity is an employer cost included in CTC, not a deduction from your salary, but it is not paid out monthly, so it does not form part of in-hand pay.
Disclaimer: This calculator is for general information and educational purposes only and does not constitute tax or financial advice. It uses the new-regime slabs and standard assumptions for EPF, gratuity and professional tax; your actual payslip may differ. Verify with your employer or a qualified professional. © ClearTax Advisors.