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Take-home salary calculator

From CTC to the amount that reaches your bank each month — after employer PF, gratuity, your own PF, professional tax and FY 2026-27 income tax.

Fixed pay. Leave out variable pay you cannot count on.
Check your offer letter. Under the wage definition in the labour codes (in force since 21 November 2025), allowances above half of total pay are counted as wages, so many employers keep basic near 50%.
Telangana: ₹200 a month on salary above ₹20,000 (₹150 from ₹15,001). Enter 0 if your state has none.
Monthly in-hand salary—
Income tax for the year, incl. cess—
Effective tax rate—
Gross salary per year—
Taxable income—
Other regime, same inputs—
Per yearPer month
CTC——
Employer PF——
Gratuity provision——
Gross salary——
Your PF——
Professional tax——
Income tax (TDS)——
In-hand——

Employer PF goes into your PF account; the gratuity provision is paid only when you leave after five years. Neither reaches your bank each month.

Educational tool with simplified assumptions. Returns are not guaranteed; actual results will differ. This is not investment, tax or legal advice.

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How it works

The maths, in plain English.

Step 1 — CTC to gross salary. CTC includes money that never appears in your bank account: the employer's PF contribution (12% of the PF wage) and, in many offers, a gratuity provision of 4.81% of basic — 15 days' pay for every 26 working days, spread over 12 months. Remove both and you have gross salary.

Step 2 — payslip deductions. Your own PF contribution (equal to the employer's), professional tax, and income tax deducted at source.

Step 3 — income tax, FY 2026-27. New regime: gross salary less the ₹75,000 standard deduction; nil up to ₹4 lakh, then 5, 10, 15, 20 and 25% on each further ₹4 lakh and 30% above ₹24 lakh; no tax when taxable income is ₹12 lakh or less, with marginal relief just above. Old regime: ₹50,000 standard deduction, professional tax, Section 80C up to ₹1.5 lakh (your PF counts first), the HRA exemption and other deductions you enter; slabs of 5, 20 and 30%. Surcharge above ₹50 lakh and the 4% cess are included. It is the same tested engine as our old vs new regime calculator.

The PF wage ceiling. PF is compulsory on wages up to a ceiling; above it, employers may contribute on full basic or restrict PF to the ceiling. The Union Cabinet approved raising the ceiling from ₹15,000 to ₹25,000 a month on 16 September 2026, and the Labour Ministry is reported to have notified it from 17 September 2026 (S.O. 5109(E)). An employer that restricts PF to the ceiling would then contribute ₹3,000 a month instead of ₹1,800. [VERIFY] EPFO's operating circulars, and how employers will treat staff already above the ceiling, were not available when this page was written — which is why the ceiling is an editable field.

Assumptions. Age below 60. All CTC is fixed salary: no variable pay, meal cards, group-insurance premiums, employer NPS or perquisites. Employer contributions to PF, NPS and superannuation above ₹7.5 lakh a year are taxable and are not modelled. Professional tax reduces taxable salary only in the old regime. Tax is spread evenly over twelve months; your employer's monthly TDS may differ.

Sources (checked 19 Sep 2026). Cabinet release on the EPFO wage ceiling, 16 Sep 2026 · Upstox report of Gazette notification S.O. 5109(E), 17 Sep 2026 · Tax slabs, standard deduction, rebate, surcharge and cess: unchanged by Budget 2026 (see the regime calculator) · factoHR, Telangana professional tax slabs 2026

Questions

FAQ

How is in-hand salary calculated from CTC?
Take CTC, remove the employer's PF contribution and any gratuity provision to get gross salary, then subtract your own PF contribution, professional tax and income tax. What is left, divided by twelve, is the monthly in-hand figure.
Why is my take-home lower than CTC divided by 12?
Because CTC is the employer's total cost, not your pay. Employer PF and gratuity sit inside CTC but are not paid out monthly, and your own PF, professional tax and TDS come out of the payslip. On a ₹12 lakh CTC with 50% basic, roughly ₹1 lakh a year is employer PF and gratuity alone.
What changed with the PF wage ceiling in September 2026?
The Union Cabinet approved an increase in the EPF wage ceiling from ₹15,000 to ₹25,000 a month on 16 September 2026, reported as notified with effect from 17 September 2026. For employees whose PF is restricted to the ceiling, the contribution rises from ₹1,800 to ₹3,000 a month on each side, which lowers take-home and raises retirement savings. Employees already contributing on full basic see no change.
Which tax regime gives a higher take-home?
It depends on your deductions. The calculator shows the in-hand figure under the regime you pick and, beside it, under the other regime with the same inputs. For a full comparison with the break-even level of deductions, use the old vs new regime calculator.
Is professional tax the same in every state?
No. It is a state levy capped at ₹2,500 a year. Telangana charges ₹200 a month on monthly salary above ₹20,000 and ₹150 between ₹15,001 and ₹20,000; some states, such as Delhi and Haryana, charge none. It can be deducted from salary income only under the old regime.
Is gratuity deducted from my salary every month?
No. Gratuity is paid by the employer when you leave after at least five years. Many employers show a yearly provision of 4.81% of basic inside CTC, which is why it reduces the cash part of your package.
Does this calculator give tax advice?
No. It is arithmetic on the numbers you enter, using published FY 2026-27 rules. Your payslip can differ because of allowances, perquisites, variable pay and your employer's TDS method.

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