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CTC to in-hand salary calculator for FY 2026-27

Turn an annual CTC into monthly take-home pay: employer PF and gratuity inside CTC, the Labour Code 50% wage rule, professional tax by state, and income tax under the new or old regime.

Last updated · FY 2026-27

Calculate in-hand salaryINR · ₹

Salary

Fixed annual CTC only; leave out bonus, variable pay and ESOPs.

Basic + DA as % of CTC50%
Under the Labour Codes, allowances above 50% of pay are added back to PF and gratuity wages.

Income tax

Regime and year decide the slabs, rebate and standard deduction.

Tax regime
Financial year

State & statutory

Professional tax by state, and how PF and gratuity sit inside CTC.

State for professional tax

Estimates only, computed in your browser. Nothing you type is sent to or stored by wHRMS. Confirm figures with your CA or the statutory portal before filing.

Worked example

Santhosh works at Aplenix Technologies in Tamil Nadu on a CTC of ₹12,00,000, with basic at 50% (₹6,00,000), the new tax regime and gratuity inside CTC. Employer PF is ₹36,000 a year (12% of the ₹25,000 monthly ceiling; the calculator assumes that ceiling, which applies from 17 September 2026, for the whole year) and the gratuity provision is about ₹28,846, so gross salary is about ₹11,35,154. Taxable income after the ₹75,000 standard deduction is about ₹10.6 lakh, under the ₹12 lakh rebate limit, so TDS is nil. Employee PF of ₹36,000 and professional tax of ₹2,500 leave Santhosh with in-hand pay of about ₹91,388 a month.

What CTC includes and what reaches your bank

Gross salary is basic + DA plus allowances such as HRA and special allowance. CTC is larger: it also counts what the employer pays on your behalf, mainly employer PF (12% of PF wages), employer ESI where gross pay is within the ESI limit, and a gratuity provision of about 4.81% of wages.

None of the employer contributions reach your bank each month. From gross salary, the employer then deducts employee PF (12%), employee ESI if covered, professional tax set by your state, and income tax (TDS). What is left is your in-hand salary.

The Labour Code 50% wage rule

From 21 November 2025, the Labour Codes define wages as basic + DA + retaining allowance. If the other allowances are more than 50% of total pay, the excess is added back to wages for PF and gratuity. So a structure with basic at 40% of CTC pays PF and gratuity on half of gross pay, not on the 40%. This calculator applies the rule and tells you when an amount has been added back.

For employers

Offer letters, salary structures and payslips all need the same CTC split, and the 50% wage test has to be checked every time a structure changes. The wHRMS payroll module builds components from CTC, applies PF, ESI, professional tax and TDS each month, and keeps every employee's structure in one record.

Frequently asked questions

CTC is the total yearly cost of employing you: gross salary plus the employer's PF, ESI (if you are covered) and gratuity provision. In-hand salary is what reaches your bank each month after employee PF, ESI, professional tax and income tax (TDS) are deducted from gross salary.

From 21 November 2025, wages for PF and gratuity must be at least half of total pay. If basic + DA was set low and allowances were high, the excess allowances are added back to wages, so PF and gratuity go up. Inside a fixed CTC, a higher employer PF and gratuity leaves less gross salary, and a higher employee PF takes more out of it.

The new regime has lower rates, a ₹75,000 standard deduction and no tax up to ₹12 lakh of taxable income after the rebate, but almost no deductions. The old regime only helps if your HRA, 80C, 80D and home loan deductions are large. Compare both in the income tax calculator with your actual deductions.

Many employers include a gratuity provision of about 4.81% of basic + DA in CTC, but it is not paid monthly. It is paid when you leave after five years of service (one year for fixed-term employees under the Labour Codes). Turn off "Gratuity is part of CTC" if your offer letter shows it separately.

The EPF wage ceiling is ₹25,000 a month from 17 September 2026, up from ₹15,000. By default PF is 12% of wages up to the ceiling, so ₹3,000 a month each from employer and employee. Some employers contribute on full basic; switch on "PF on full basic" if yours does.

No. Enter only the fixed part of your CTC. Performance bonus, variable pay, joining bonus and ESOPs depend on targets or vesting and are taxed when paid, so they are left out of the monthly in-hand figure.