Why CTC and in-hand differ
Cost to company includes the employer's PF contribution, gratuity and sometimes insurance, none of which is paid out monthly. From the remaining gross, your own PF (12% of basic, capped by most employers at ₹1,800 a month), professional tax (about ₹200 a month) and income tax are deducted. On a ₹12 lakh CTC with 40% basic, take-home is roughly ₹85,000–90,000 a month.
How this estimate works
The calculator assumes PF on basic salary, the new tax regime for FY 2026-27 with the ₹75,000 standard deduction and ₹12 lakh rebate, and ₹2,400 a year of professional tax. Enter any extra deductions such as NPS, insurance or meal cards in the last box. Actual payslips vary with company structure, so treat this as a close estimate rather than an exact figure.
Frequently asked questions
Is employer PF part of CTC?
Yes. Both employer and employee PF are usually inside the CTC figure, which is why in-hand is lower than CTC ÷ 12.
Which tax regime does this use?
The new regime, which is the default and better for most salaries up to about ₹15 lakh without large deductions.
Does gratuity reduce my monthly salary?
Gratuity is accrued, not deducted monthly, but companies often count it inside CTC.