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IN-HAND SALARY / 2026-27 / INDIA

CTC to in-hand salary calculator

Turn your CTC into monthly in-hand salary: basic, HRA and allowances, employer and employee PF, gratuity, ESIC, professional tax and income tax for 2026-27.

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Your details

01Salary

Tax regime

Sets professional tax. Kerala is not included yet.

Maharashtra exempts women earning up to ₹25,000 a month.

02Salary structure

From your offer letter. 40–50% is common.

Many employers count about 4.81% of basic as gratuity in CTC. It is paid only when you leave after five years.

In-hand salary per month

₹91,388

from ₹12,00,000 CTC, new regime, 2026-27

In-hand salary per year
₹10,96,654
Gross salary per year
₹11,35,154
Income tax per year
₹0
Your PF per year
₹36,000
Professional tax per year
₹2,500
Employer PF (in CTC)
₹36,000
Gratuity accrual (in CTC)
₹28,846
In-hand per month under the other regime
₹80,425
  • Income tax for 2026-27 under the new regime, deducted evenly over 12 months. Under the old regime your in-hand pay would be ₹80,425 a month (choose Old to add rent and investments, which only that regime allows).
  • Employer PF and gratuity are part of CTC but not paid to you each month: PF builds your provident fund and gratuity is paid when you leave after five years (one for fixed-term staff). Of the employer's 12%, ₹2,083 a month goes to the pension scheme (EPS).
  • PF uses the ₹25,000 monthly wage ceiling that applies from 17 September 2026. EDLI and PF admin charges paid by the employer, bonuses, variable pay and reimbursements are not included.

In-hand salary per month: ₹91,388 from ₹12,00,000 CTC, new regime, 2026-27

From CTC to in-hand pay
Show the breakdownPer monthPer year
CTC₹1,00,000₹12,00,000
Employer PF (12%)−₹3,000−₹36,000
Gratuity accrual−₹2,404−₹28,846
Gross salary₹94,596₹11,35,154
Basic + DApart of gross₹50,000₹6,00,000
HRApart of gross₹25,000₹3,00,000
Special allowancepart of gross₹19,596₹2,35,154
Your PF (12%)−₹3,000−₹36,000
Professional taxFebruary amount differs−₹200−₹2,500
Income tax (TDS)₹0₹0
In-hand salary₹91,388₹10,96,654
Where your CTC goes (per year)
91%TAKE-HOME
  • In-hand pay₹10,96,65491%
  • PF (yours + employer's)₹72,0006%
  • Gratuity accrual₹28,8463%
  • Professional tax and ESIC₹2,500<1%

₹91,388

from ₹12,00,000 CTC, new regime, 2026-27

How it's calculated

Your CTC (cost to company) is everything your employer spends on you in a year, including money that never reaches your bank account each month. The calculator takes those parts out first to find your gross salary, then deducts what is taken from your pay, and divides by 12.

  1. Basic + DA = CTC × the basic percentage from your offer letter.
  2. Employer PF = 12% of basic, on basic up to ₹25,000 a month (the EPF wage ceiling from 17 September 2026) or on your full basic if your employer contributes on it.EPFO
  3. Gratuity accrual (if your CTC includes it) = basic × 15 ÷ 26 ÷ 12, about 4.81% of basic: the yearly share of the gratuity you receive when you leave.
  4. Gross salary = CTC − employer PF − gratuity − employer ESIC (3.25%, only if gross pay is up to ₹21,000 a month). Gross = basic + HRA + special allowance.
  5. In-hand pay = gross − your PF (12%) − ESIC (0.75%, if covered) − professional tax − income tax.

The formula

In-hand per month = (CTC − employer PF − gratuity − employer ESIC − employee PF − employee ESIC − professional tax − income tax) ÷ 12.

Income tax is worked out on gross salary for 2026-27 under the regime you choose. Under the new regime only the ₹75,000 standard deduction applies. Under the old regime the calculator adds your HRA exemption (from the rent you pay), your PF and other 80C investments, health insurance and professional tax.Gazette of India Professional tax follows your state's slabs: for example, Maharashtra charges ₹200 a month and ₹300 in February.Maharashtra GST Department

Worked example

A ₹12 lakh CTC in Maharashtra, with basic at 50% of CTC, PF on basic up to ₹25,000 and gratuity in CTC, gives a gross salary of ₹11,35,154 and an in-hand salary of ₹91,388 a month under the new regime. Income tax is ₹0, because taxable salary stays under ₹12 lakh.

₹12 lakh CTC, Maharashtra, new regimeIN-HAND / NEW REGIME / 2026-27
LinePer monthPer year
CTC₹1,00,000₹12,00,000
Employer PF (12%)-₹3,000-₹36,000
Gratuity accrual-₹2,404-₹28,846
Gross salary₹94,596₹11,35,154
Basic + DA₹50,000₹6,00,000
HRA₹25,000₹3,00,000
Special allowance₹19,596₹2,35,154
Your PF (12%)-₹3,000-₹36,000
Professional tax-₹200-₹2,500
Income tax (TDS)₹0₹0
In-hand salary₹91,388₹10,96,654

A ₹25 lakh CTC in Karnataka gives ₹1,72,657 a month under the new regime, after ₹2,93,515 of income tax for the year.

Assumptions and limitations

  • Fixed pay only. Bonuses, variable pay, joining bonuses, reimbursements and meal cards in your CTC are not included.
  • The Code on Wages 50% rule. Since 21 November 2025, if allowances are more than half of your total pay, the excess counts as wages for PF and gratuity.Ministry of Labour and Employment The calculator warns when basic is below half of gross pay but keeps PF on basic.
  • EDLI and PF administration charges paid by the employer are usually outside CTC and are not deducted.
  • ESIC is applied when gross pay is within ₹21,000 a month.ESIC
  • Professional tax covers Maharashtra, Karnataka, West Bengal, Tamil Nadu (Chennai rates), Telangana, Andhra Pradesh, Gujarat, Madhya Pradesh and Assam. Kerala is not included yet. Odisha abolished professional tax from April 2026.
FAQ

Questions people ask

How do I calculate in-hand salary from CTC?

Start from CTC and take out what the employer pays on your behalf but never reaches your account each month: the employer's PF, any gratuity accrual and the employer's ESIC. That leaves gross salary. From gross salary, deduct your own PF, ESIC if you are covered, professional tax and income tax. What remains, divided by 12, is your monthly in-hand pay.

Why is my in-hand salary so much lower than my CTC?

CTC counts everything the job costs the employer, including the employer's 12% PF contribution and often a gratuity accrual of about 4.8% of basic, which you only receive later. Your own 12% PF, professional tax and income tax are then deducted from gross pay. Variable pay and bonuses in the CTC are paid only if earned, so they are not part of monthly in-hand pay.

How much PF is deducted from my salary?

Employees contribute 12% of basic pay plus dearness allowance, and the employer contributes another 12%. Many employers limit both to 12% of the statutory wage ceiling, which rose from ₹15,000 to ₹25,000 a month from 17 September 2026, so the maximum deduction on that basis is ₹3,000 a month. Some employers contribute on the full basic instead.

What is professional tax and who pays it?

Professional tax is a state tax on employment, deducted by the employer from your salary. Each state sets its own slabs, and the Constitution caps it at ₹2,500 a year. States such as Maharashtra, Karnataka, West Bengal, Tamil Nadu and Telangana levy it; Delhi, Haryana and Uttar Pradesh do not, and Odisha abolished it from April 2026.

Does the new labour code change my in-hand salary?

The Labour Codes in force from 21 November 2025 say that if allowances make up more than half of your total pay, the excess counts as wages for PF and gratuity. If your basic is low, your employer may have to compute PF and gratuity on a higher amount, which can lower in-hand pay but raise your savings. The calculator warns when basic is below half of gross pay.

Sources

  1. Gazette of IndiaIncome-tax Act, 2025 (No. 30 of 2025) · retrieved 2026-10-20
  2. Gazette of IndiaFinance Act, 2026 (No. 4 of 2026), section 3 and First Schedule Part I-B · retrieved 2026-10-20
  3. EPFOFAQs on enhancement of EPF wage ceiling to ₹25,000 (September 2026) · retrieved 2026-10-20
  4. ESICESIC contribution rates · retrieved 2026-10-20
  5. Ministry of Labour and EmploymentCode on Social Security, 2020 (section 53: gratuity) · retrieved 2026-10-20
  6. Ministry of Labour and EmploymentFAQs on the Labour Codes (30 December 2025) · retrieved 2026-10-20
  7. Income Tax DepartmentIncome-tax Rules, 2026 (Notification 22/2026), Rule 279: house rent allowance · retrieved 2026-10-20

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How every figure is checked: methodology.