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In-hand salary calculator

Turn the CTC in your offer letter into the salary that actually reaches your bank each month, after PF, professional tax and income tax. Updated for FY 2026-27. Free, with no sign-up.

Updated

Your offer

Rupees Twelve Lakh Only

Yearly amount, paid separately. Leave blank if none.

Usually 40% to 50%. Since the 2025 labour codes, it's generally at least half of pay.

Your in-hand salary

₹85,396 a month

₹10,24,754 a year

Gross salary
₹91,596
Your PF
−₹6,000
Professional tax
−₹200
Income tax (TDS)
₹0
In-hand, per month
₹85,396

Where your ₹12,00,000 CTC goes

  • In your bank85%
  • PF and gratuity (yours later)14%
  • Otherunder 1%

The new regime is the better choice here, by about ₹9,313 a month.

Deductions from your pay

Provident fund (PF)

Many employers only pay PF on the first ₹25,000 of basic a month, the limit since 17 September 2026. Your salary slip or offer letter shows which.

Usually ₹2,400 to ₹2,500. None in some states, such as Delhi.

Insurance, meal cards and so on, per year. Not paid as cash.

Income tax

Tax regime

Want the full picture? The income tax calculator compares both regimes line by line.

Your salary structure

Part of your CTCPer monthPer year
Basic pay₹50,000₹6,00,000
House rent allowance (HRA)₹25,000₹3,00,000
Special allowance₹16,596₹1,99,154
Gross salary₹91,596₹10,99,154
Employer's PF₹6,000₹72,000
Gratuity₹2,404₹28,846
CTC₹1,00,000₹12,00,000

A typical structure. Your employer may split the allowances differently, which mostly changes tax under the old regime. Figures are estimates for FY 2026-27.

Next steps

How CTC becomes in-hand salary

  1. Start with your CTC. It's everything your employer spends on you in a year.
  2. Take out what isn't paid monthly: your employer's PF, gratuity, insurance and any variable pay. What's left is your gross salary.
  3. Take out deductions: your own PF (12% of basic), professional tax, and income tax (TDS) spread over the year. What's left is your in-hand salary.

In-hand salary for common CTCs

For FY 2026-27 under the new tax regime, with a typical salary structure:

CTCIn-hand per monthIncome tax per year
₹3 lakh₹21,199₹0
₹5 lakh₹35,465₹0
₹8 lakh₹56,864₹0
₹10 lakh₹71,130₹0
₹12 lakh₹85,396₹0
₹15 lakh₹1,00,309₹77,830
₹20 lakh₹1,29,340₹1,57,440
₹25 lakh₹1,56,136₹2,63,870
₹30 lakh₹1,80,695₹3,97,140

Assumes basic pay is half the CTC, PF is 12% of basic, gratuity is part of the CTC, professional tax is ₹2,400 a year and there's no variable pay. Change any of these in the calculator above to match your offer letter.

What changed in 2025 and 2026

  • Labour codes, from 21 November 2025: basic pay and similar wages generally have to be at least 50% of total pay, which raises PF and gratuity.
  • PF wage ceiling, from 17 September 2026: up from ₹15,000 to ₹25,000 a month, so capped PF is now up to ₹3,000 a month from each side.
  • Income tax: salaries up to ₹12.75 lakh pay no tax under the new regime, and the slabs are the same as last year.

Comparing two job offers?

Compare the in-hand salary, not the CTC. Two offers with the same CTC can pay quite different amounts each month depending on variable pay, PF and benefits. Then check the tax both ways with the income tax calculator, and read what each line on a payslip means.

These are estimates. Your employer's payroll can differ slightly in how it splits allowances and spreads tax over the year.

Questions

What is the in-hand salary for 10 LPA?
About ₹71,130 a month for FY 2026-27 under the new regime, if basic pay is half your CTC, PF is 12% of basic and gratuity is part of the CTC. There's no income tax at this level under the new regime. If your employer caps PF at ₹3,000 a month, it's about ₹75,130, because less goes into PF from both sides.
What is the in-hand salary for 12 LPA?
About ₹85,396 a month under the new regime, with the same assumptions. A ₹12 lakh CTC leaves a gross salary of about ₹11 lakh once the employer's PF and gratuity are taken out, which is under the ₹12.75 lakh tax-free limit for salaried people.
Why is my in-hand salary so much lower than my CTC divided by 12?
Because CTC includes money that never reaches your bank each month: your employer's PF contribution, gratuity, insurance and any variable pay. Then your own PF, professional tax and income tax are deducted from the salary that's left.
Is the PF deducted from my salary lost?
No. Both your share and your employer's share go into your PF account and earn interest. It's savings you get later, when you retire or leave a job and withdraw it, not money you lose.
How much PF is deducted from my salary?
12% of your basic pay each month, and your employer adds another 12%. Many employers only contribute on basic pay up to the PF wage ceiling, which is ₹25,000 a month since 17 September 2026, so at most ₹3,000 a month each.
Do the new labour codes reduce take-home pay?
They can. Since 21 November 2025, basic pay and similar wages generally have to be at least half of total pay. A higher basic means more PF and gratuity from the same CTC, so take-home can dip slightly, while your savings grow.
Is variable pay part of my monthly salary?
Usually not. Variable pay or a bonus is paid separately, often once or twice a year, and depends on performance. This calculator shows your monthly pay without it, and what the variable part is worth after tax.

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