Salary structure · FY 2025-26 (AY 2026-27)
In-hand salary calculator
CTC is what you cost your employer. In-hand is what reaches your bank account. Between the two sit employer PF, gratuity, your own PF, professional tax and income tax — this shows every one of them.
Rates reviewed 10 November 2026 · Estimates only, not tax advice. Verify against the current Finance Act before you rely on a figure.
Most Indian employers set basic at 40–50% of CTC. A higher basic means more PF and gratuity — a smaller take-home now, a larger retirement corpus.
Widens the exempt slab in the old regime only.
Old-regime deductions
Ignored under the new regime, which allows almost none of these. Fill them in to see whether the old regime still wins for you.
Drives the HRA exemption u/s 10(13A)
Your PF is counted automatically
Over and above the ₹1.5L 80C cap
Monthly in-hand
₹1,00,309
₹12,03,707 a year · new regime
The new regime saves you ₹1,11,406 of tax at this CTC.
Where the CTC goes
Cost to company
₹15,00,000
Employer PF
Goes to your EPF account, not your bank
− ₹90,000
Gratuity accrual
Payable only after 5 years of service
− ₹36,058
Gross salary
₹13,73,942
Employee PF
− ₹90,000
Professional tax
− ₹2,400
Income tax + cess
Effective 5.7% of gross
− ₹77,835
Annual in-hand
₹12,03,707
How the tax is built
Taxable income
₹12,98,942
Tax at slab rates
₹74,841
Health & education cess (4%)
₹2,994
Total tax
₹77,835
FY 2025-26 (AY 2026-27). Estimates only — your actual payslip depends on how your employer structures allowances, your state's professional tax, and any perquisites. It is not tax advice.
Where the money goes
The five deductions between CTC and your bank account
Employer PF — 12% of basic
Paid by the company into your EPF account. It is yours, but it is not pay. Of this, 8.33% of wages up to ₹15,000 goes to the pension scheme (EPS) and the rest to EPF.
Gratuity accrual — about 4.81% of basic
Set aside annually against a future obligation. Payable only after five years of continuous service; forfeited entirely if you leave sooner.
Employee PF — another 12% of basic
Deducted from your gross salary. In the old regime it counts toward the ₹1.5L Section 80C ceiling, which is why declaring 80C investments on top rarely adds the full amount.
Professional tax — up to ₹2,500 a year
A state levy, not a central one. Some states do not charge it. Deductible from taxable income under Section 16(iii) in the old regime only.
Income tax + 4% cess
Computed on taxable income after the standard deduction and, in the old regime, HRA and Chapter VI-A deductions. Health and education cess of 4% sits on top of tax and surcharge.
What CTC also hides
Variable pay, joining bonuses and retention bonuses are often quoted inside CTC but paid conditionally. Insurance premiums and meal cards may appear as CTC without reaching your pay at all.
Questions people actually search
Answered
Why is my in-hand salary so much lower than my CTC?
Because CTC is what you cost the company, not what you are paid. Three things never reach your bank account: the employer's 12% PF contribution, the gratuity the company sets aside each year, and in some structures an employer NPS contribution. What remains is gross salary. From that your own 12% PF, professional tax and income tax are deducted. For a typical structure, monthly in-hand lands around 65-75% of CTC.
How is in-hand salary calculated from CTC?
Start with CTC. Subtract the employer-side retirals — employer PF, gratuity accrual, employer NPS — to get gross salary. From gross, subtract employee PF (12% of basic), professional tax (state-wise, up to ₹2,500 a year) and income tax including cess. Divide by twelve for the monthly figure. The calculator above does each step and shows the arithmetic.
Does a higher basic salary increase or reduce take-home?
It reduces immediate take-home and increases long-term savings. Basic drives both PF contributions and gratuity, so raising basic from 40% to 50% of CTC moves more money into your EPF account and out of your monthly pay. It also raises your HRA entitlement, which can cut tax in the old regime if you pay rent. There is no universally right answer — it depends on whether you want the cash now or the corpus later.
What is the ₹15,000 PF wage ceiling?
The EPF Act requires contributions on wages up to ₹15,000 a month. Many employers contribute on actual basic instead, which is more generous but reduces take-home. If your employer restricts PF to the ceiling, your contribution is capped at ₹1,800 a month regardless of how high your basic is. The toggle in the calculator shows the difference.
Which tax regime gives higher in-hand salary?
For most salaried people with few deductions, the new regime does — it has a ₹75,000 standard deduction, wider slabs, and makes income up to ₹12,00,000 effectively tax-free through the Section 87A rebate. The old regime only wins when you genuinely claim large deductions: full 80C, HRA on substantial rent, 80D, and home-loan interest. The calculator computes both and tells you which is cheaper at your numbers.
Is professional tax the same everywhere in India?
No. It is a state levy, so it varies, and some states and union territories do not charge it at all. The constitutional maximum is ₹2,500 a year. Maharashtra, Karnataka, West Bengal, Tamil Nadu and Telangana all levy it on slightly different slabs. The calculator assumes ₹2,400 a year, which is the common ₹200-a-month pattern.
Does the calculator include variable pay or bonus?
No — it treats the CTC you enter as fixed pay. If your offer includes a performance bonus or variable component, exclude it to see your guaranteed monthly in-hand, then treat the bonus separately. Bonus is taxed as salary in the year it is paid, usually with TDS deducted at the time of payment.
Is gratuity part of my salary?
It is part of CTC but not part of your pay. The company sets aside roughly 4.81% of annual basic each year, and it becomes payable only after five years of continuous service. If you leave before five years you forfeit it entirely — which is why counting it as salary in year one is misleading.
Paying contractors and consultants too?
Dyopact handles the other side of the payroll line — contractor invoices, TDS under 194J and 194C, GST, and payment tracking on one record.