Salary calculator India: CTC to in-hand salary
This salary calculator converts your annual CTC (cost to company) into the monthly in-hand salary that reaches your bank account. It deducts employer and employee provident fund, gratuity, professional tax and income tax under the new tax regime or the old regime, using the slabs for FY 2026-27 (valid as of 2026). Use it to check an offer letter, compare two job offers, or see what a salary hike means in hand.
What is salary, CTC and in-hand pay?
- CTC is everything the employer spends on you in a year: basic, allowances, bonus, the employer's PF contribution, gratuity and sometimes insurance.
- Gross salary is CTC minus the employer's PF and gratuity. It is the "salary" defined in Section 17(1) of the income tax law and appears on your salary slip.
- In-hand (take-home) salary is gross salary minus your own PF, professional tax and income tax (TDS).
How to use this salary calculator online
- Annual CTC – from your offer letter, for example ₹12 LPA (lakh per annum).
- Basic % – usually 40–50% of CTC. Since the new labour codes took effect in November 2025, "wages" (basic + DA) must be at least 50% of total pay, so many employers now use 50%.
- PF option – most private employers cap PF at 12% of ₹15,000 (₹1,800 a month). Some deduct 12% of the full basic.
- Gratuity – many companies show gratuity (4.81% of basic) inside CTC even though you receive it only after five years.
- Bonus, professional tax and tax regime – enter what applies to you. For the old regime, add rent and investments to get the HRA exemption and deductions.
How to calculate salary from CTC: formula
In-hand salary = CTC − employer PF − gratuity − bonus − employee PF − professional tax − income tax
- Employer PF = 12% of basic (or of ₹15,000 when capped)
- Gratuity = 4.81% of basic (15 ÷ 26 days ÷ 12 months)
- Employee PF = same as employer PF
- Income tax = slab tax on gross salary minus standard deduction, plus 4% cess
Salary calculation example: ₹12 LPA in the new tax regime
CTC ₹12,00,000 with 50% basic (₹6,00,000, i.e. ₹50,000 a month), PF capped at ₹1,800 a month, gratuity in CTC and ₹2,400 professional tax.
- Employer PF = ₹21,600; gratuity = 4.81% × 6,00,000 = ₹28,860.
- Gross salary = 12,00,000 − 21,600 − 28,860 = ₹11,49,540.
- Taxable income = 11,49,540 − 75,000 = ₹10,74,540. This is below ₹12 lakh, so the 87A rebate makes income tax zero.
- In-hand = 11,49,540 − 21,600 (employee PF) − 2,400 (PT) = ₹11,25,540 a year, or about ₹93,795 a month.
The default values in the calculator above give this exact result.
Salary calculator with new tax regime (FY 2026-27)
The new regime is the default. It gives a ₹75,000 standard deduction and a rebate that makes tax nil up to ₹12 lakh of taxable income, so a salaried person with gross salary up to ₹12.75 lakh pays no income tax. Above that, the slabs are 15% (₹12–16 lakh), 20% (₹16–20 lakh), 25% (₹20–24 lakh) and 30% above ₹24 lakh. Details and a side-by-side comparison are in the income tax calculator.
The old regime can give a higher in-hand salary if you pay high rent and invest the full ₹1.5 lakh under 80C. The HRA exemption is the least of HRA received, rent minus 10% of basic, and 50% of basic (metro) or 40% (other cities). From FY 2026-27 the 50% list covers eight cities: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. The HRA calculator shows the exemption in detail.
Salary calculator with PF
Both you and your employer put 12% of basic + DA into the Employees' Provident Fund. From the employer's share, 8.33% of wages up to ₹15,000 (₹1,250 a month) goes to the pension scheme (EPS) and the rest to your EPF account. PF reduces take-home pay but builds a tax-free retirement fund earning 8.25% (FY 2025-26 rate). See how it grows with the EPF calculator.
How to calculate salary per month and per day
- Yearly to monthly: divide annual gross salary by 12. ₹6,00,000 a year is ₹50,000 a month gross.
- Monthly to annual: multiply by 12 (add yearly bonus separately).
- Salary per day: monthly salary ÷ days in the month (or ÷ 26 working days, as many employers use for leave deduction). ₹30,000 ÷ 30 = ₹1,000 a day.
- Hourly rate: daily rate ÷ working hours per day.
How to calculate salary hike and increment percentage
Hike % = (New salary − Old salary) ÷ Old salary × 100
Moving from ₹8 LPA to ₹10 LPA is a 25% hike. Remember that a hike in CTC does not raise in-hand salary by the same percentage, because tax and PF rise too. Run both CTC figures through this calculator to compare the real increase, or use the percentage change calculator.
Tips to increase your take-home salary
- Ask for the PF to be calculated on the ₹15,000 wage ceiling if you prefer cash now over retirement savings.
- In the new regime, ask your employer to route part of CTC to NPS: up to 14% of basic is tax-free under Section 80CCD(2).
- Claim reimbursements (fuel, phone, meals) where your company's policy allows.
- Compare regimes every April – your best choice changes as your salary and rent change.
Salary calculator formula in one line
The salary calculator formula is: monthly in-hand = (CTC − employer PF − gratuity − bonus − employee PF − professional tax − income tax) ÷ 12. The after-tax result above follows exactly this order for India, and the income tax step uses the new tax regime slabs unless you switch to the old regime.
Salary calculator with tax deductions
Choose the old regime to use it as a salary calculator with tax deductions: enter rent (for the HRA exemption) and 80C/80D investments, and the result shows how much tax, and therefore how much in-hand pay, those deductions change. In the new regime, only the standard deduction and employer NPS reduce tax.
Salary calculator LPA: yearly to monthly, daily and hourly
LPA means lakh per annum, so 12 LPA is ₹12,00,000 a year of CTC – about ₹1 lakh a month before deductions. Handy conversions for a salary calculator yearly to monthly and beyond:
| Conversion | How | Example (₹12 LPA gross) |
|---|---|---|
| Yearly to monthly | ÷ 12 | ₹1,00,000 |
| Monthly to daily | ÷ 30 (or ÷ 26 working days) | ₹3,333 (₹3,846) |
| Yearly to hourly | ÷ 2,080 hours (52 weeks × 40 hours) | about ₹577 |
The salary calculator monthly to daily figure is what employers use to deduct unpaid leave; for a partial month, work it out day wise by multiplying that daily rate by the days worked. For a yearly to hourly figure at 48 hours a week, divide by 2,496 instead.
Salary calculator: how to calculate monthly salary
If you only know the yearly package, enter it as CTC here and read the monthly in-hand figure. If you know the monthly gross, multiply by 12 and add the employer PF and gratuity to get CTC first.
Salary calculator with hike and yearly increase
To use the salary calculator with a hike, run it twice – once with your current CTC and once with the new CTC – and compare the monthly in-hand figures. A 10% hike on ₹12 LPA makes CTC ₹13.2 lakh, but because taxable income crosses ₹12 lakh, part of the increase goes in tax. The salary calculator hike percentage is (new − old) ÷ old × 100; with a yearly increase of 10%, pay doubles in about 7.3 years. For government employees, an increment works differently: a 3% annual increment on basic pay, moving you one cell up the pay matrix level.
Salary calculator for central government employees (7th pay commission)
Central government pay under the 7th CPC (7th Pay Commission) is not based on CTC. Salary = basic pay from the pay matrix + Dearness Allowance (DA) + House Rent Allowance (HRA) + Transport Allowance. From 1 January 2026, DA is 60% of basic, and HRA is 30%, 20% or 10% of basic for X, Y and Z class cities. A salary calculator 7th pay example at Level 1 (basic ₹18,000): DA ₹10,800 + HRA ₹5,400 (X city) = ₹34,200 a month plus transport allowance. Deductions are NPS or UPS (10% of basic + DA), CGHS and income tax. The same pay matrix applies to railway employees, and this salary calculator page is useful for comparing a government offer with a private CTC.
Salary calculator for 8th pay commission and fitment factor
The 8th Pay Commission was constituted in November 2025 and has not yet made its recommendations, so any salary calculator after 8th pay commission is an estimate. The key number is the fitment factor: new basic = current basic × fitment factor. The 7th CPC used 2.57 (which took the minimum basic from ₹7,000 to ₹18,000). Estimates for the 8th CPC range from about 1.92 to 2.86; a salary calculator with fitment factor 2.28 turns an ₹18,000 basic into ₹41,040. DA usually restarts from zero when the new pay matrix begins, so compare total pay, not basic alone.
Salary calculator for state government employees
State governments set their own pay matrix, DA and HRA rates through state pay commissions, although most follow the 7th CPC structure. For a salary calculator for Rajasthan, Madhya Pradesh or any other state government, take the basic from your state's pay matrix, add the state DA rate and your city's HRA rate, and subtract NPS/GPF, professional tax where applicable, and income tax. Income tax is the same in every state and follows the central slabs.
Salary calculator kaise kare?
Salary calculator ka use karne ke liye apna saalana CTC daalein, basic ka pratishat (aam taur par 50%) chunein, PF aur gratuity ka option chunein, professional tax aur tax regime chunein. Calculator PF, gratuity, professional tax aur income tax ghatakar aapki mahine ki in-hand salary dikhata hai.
Frequently asked questions
How is in-hand salary calculated from CTC?
Subtract employer PF, gratuity and any bonus from CTC to get fixed gross pay, then subtract employee PF, professional tax and income tax. Divide by 12 for the monthly take-home salary.
What is the in-hand salary for 12 LPA?
With 50% basic, capped PF, gratuity in CTC and the new tax regime, ₹12 LPA gives about ₹93,800 a month in hand for FY 2026-27, because income tax is nil up to ₹12 lakh taxable income.
How do I calculate salary increment percentage?
Divide the increase by the old salary and multiply by 100. A rise from ₹50,000 to ₹56,000 a month is (6,000 ÷ 50,000) × 100 = 12%.
What is a salary slip?
A salary slip (payslip) is the monthly statement from your employer listing earnings such as basic, HRA and allowances, and deductions such as PF, professional tax and TDS.
How much PF is deducted from salary?
12% of basic + DA. Many employers cap it at 12% of ₹15,000, which is ₹1,800 a month. Your employer adds an equal amount.
Is gratuity part of CTC?
Many companies include gratuity (about 4.81% of basic) in CTC, but it is paid only when you leave after five years of service, so it is not part of monthly in-hand pay.
How is salary calculated per day?
Divide the monthly salary by the number of days in the month, or by 26 if your employer counts only working days.
What is the formula for in-hand salary?
In-hand salary = CTC − employer PF − gratuity − bonus − employee PF − professional tax − income tax. Divide by 12 for the monthly amount.
How is salary calculated under the 8th Pay Commission?
New basic = current basic × fitment factor, plus DA and HRA at the new rates. The fitment factor has not been announced yet; estimates range from about 1.92 to 2.86.
What does 12 LPA mean per month?
12 LPA is ₹12 lakh CTC a year, or ₹1 lakh a month before deductions. With default settings in this salary calculator, in-hand pay is about ₹93,800 a month in the new regime.
Last updated 2026-09-18