Salary Calculator
Calculate in-hand salary with FY 2025-26 deductions
Salary Details
Enter your CTC and click Calculate Salary to see detailed breakdown
Frequently Asked Questions
What's the difference between CTC, Gross Salary, and Net Salary?
CTC (Cost to Company) includes all benefits: salary, bonuses, PF contribution, insurance, perks. Gross Salary is the in-hand component before deductions (Basic + HRA + Allowances). Net Salary (take-home) is what you receive after deducting PF, ESI, tax, and professional tax.
How is my in-hand salary calculated from CTC?
In-hand = Gross Salary - (Employee PF + ESI + Professional Tax + Income Tax). Generally, monthly in-hand is 70-80% of monthly CTC. The exact percentage depends on your salary structure, tax regime chosen, and deductions like PF/insurance.
What is Employee PF and is it mandatory?
EPF (Employee Provident Fund) is a retirement savings scheme where both employer and employee contribute 12% of basic salary (capped at ₹15,000 basic, so max ₹1,800/month). It's mandatory for companies with 20+ employees. Interest rate is ~8.25% per year (2025-26), and it's tax-free.
What is ESI deduction?
ESI (Employee State Insurance) provides medical benefits. Applicable if gross salary is ≤₹21,000/month. Employee contributes 0.75% and employer contributes 3.25% of gross salary. It covers medical expenses for employee and family.
How can I increase my in-hand salary?
Opt for new tax regime if you don't claim many deductions. Structure your salary to include tax-free components like meal allowances, leave travel allowance. Invest in tax-saving instruments (₹1.5L under 80C) if using old regime. Consider flexi-benefits offered by your employer.
What is Professional Tax?
Professional Tax is a state-level tax on employment/profession. Rates vary by state (Maharashtra, Karnataka, West Bengal, etc.). Maximum is ₹2,500/year (₹200-250/month). Your employer deducts and pays it. Not all states levy this tax.
How to Use This Calculator
- 1
Enter your Annual CTC (Cost to Company) as mentioned in your offer letter or salary slip.
- 2
Optionally customize your Basic Pay, HRA, and Special Allowance. If left blank, standard ratios are used (40%-50%-remaining).
- 3
Select whether PF (Provident Fund) applies to you. Most salaried employees in organizations with 20+ employees have PF.
- 4
Click 'Calculate Salary' to see detailed breakdown: gross salary, all deductions, and your net take-home salary.
Key Terms & Definitions
- CTC (Cost to Company)
- Total cost incurred by company for an employee including salary, benefits, bonuses, and employer's contributions to PF/insurance.
- Basic Salary
- Core component of salary, typically 40-50% of CTC. PF, gratuity, and other benefits are calculated based on basic salary.
- HRA (House Rent Allowance)
- Component for housing expenses, typically 40-50% of basic salary. Partly tax-exempt if you pay rent.
- Special Allowance
- Flexible salary component to make up the remaining CTC after basic and HRA. Fully taxable.
- Gross Salary
- Total of Basic + HRA + Allowances before any deductions. This is the monthly CTC equivalent.
- Net Salary / Take-home
- Amount credited to your bank account after all deductions (PF, ESI, tax, professional tax).
Formulas & Calculations
Standard Salary Structure
Example: ₹10L CTC = ₹33,333/month. Basic ₹13,333, HRA ₹6,667, Special ₹13,333. Companies may vary this structure.
Take-home Calculation
Deductions: PF = 12% of basic (max ₹1,800), ESI = 0.75% if gross ≤ ₹21K, PT = ₹200-250/month, Tax as per slabs.
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