Salary Calculator

Cost to company includes items you never see in your bank account — the employer’s provident fund contribution and the gratuity accrual. This calculator separates them, applies the statutory employee deductions and shows the monthly in-hand figure.

Where the tax rule set for the current financial year is available, an estimated income tax under the default new regime is also deducted. Use the Income Tax Calculator for a full old-versus-new comparison.

Your details

Annual CTC

₹

Total cost to company as stated in your offer letter.

Basic salary as % of CTC %

%

Annual bonus / variable pay included in CTC

₹

Enter 0 if your CTC has no variable component.

Provident fund

PF is computed on

Gratuity accrual included in CTC

Professional tax

₹

State-specific; ₹200 a month is typical. Enter 0 for States that do not levy it.

How it is calculated

From CTC to gross

Gross salary = CTC − employer PF − gratuity accrual

Deductions from gross

Employee PF = 12% of PF wages (basic, or ₹15,000 a month if the ceiling is applied)
Professional tax = as levied by your State, capped at ₹2,500 a year
Income tax = estimated on gross salary under the default new regime

Take-home

Net annual pay = gross salary − employee PF − professional tax − income tax
Monthly take-home = (net annual pay − annual bonus) ÷ 12

Things to keep in mind

Salary structures differ between employers. Treat this as an estimate and check your own offer letter or payslip.
Employee State Insurance, NPS, food coupons, insurance recoveries and reimbursements are not modelled.

Frequently asked questions

CTC includes the employer’s PF contribution and the gratuity accrual, which are paid into your retirement funds rather than to you, and your salary is then reduced by your own PF, professional tax and income tax.

The statutory ceiling under the EPF & MP Act, 1952 is ₹15,000 of monthly wages. Many employers voluntarily contribute 12% of the full basic salary instead — choose whichever matches your payslip.

Employers commonly accrue 4.81% of annual basic salary, which is 15/26 of one month’s pay spread over a year. You receive it only when you become eligible — normally after five years of continuous service.

Sources & official references

Rates, thresholds and limits used by this calculator were verified on 7 September 2026 and may change with a Finance Act, GST Council decision or other official notification. This page is general information, not tax or investment advice — please confirm your specific position with us before acting.

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