Salary Breakup
Salary Calculator
Convert your CTC (Cost to Company) to actual in-hand monthly salary — with a full breakdown of basic pay, HRA, PF, professional tax, and net take-home. CTC and in-hand salary differ by 25–35%: a ₹12L CTC typically yields ₹79,000–₹85,000 per month before income tax TDS.
Our calculator follows standard Indian salary structure norms — 40% basic, 50% HRA of basic, 12% employee PF, and ₹200/month professional tax — giving you the most realistic breakdown for salaried employees across India.
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CTC vs Gross vs In-Hand — What's the Difference?
CTC (Cost to Company) is the total amount the employer spends on an employee annually — including PF contributions, gratuity, insurance, and all allowances. Gross salary is the sum of basic, HRA, and allowances before deductions. In-hand (net) salary is what you receive after deducting employee PF, professional tax, and income tax TDS.
Typical CTC-to-in-hand ratio ranges from 65–75%. A ₹12L CTC package usually means ₹7–8.5L in annual in-hand salary.
Standard Salary Structure in India
- Basic salary: 40–50% of CTC. Basis for PF, gratuity, and HRA calculations.
- HRA: 40–50% of basic (50% for metro cities). Exempt from tax up to a limit.
- Special allowance: Fully taxable. The residual component after other allocations.
- Employee PF: 12% of basic, deducted from salary. Employer also contributes 12%.
- Professional tax: State-levied, max ₹2,500/year. Deductible under the old tax regime.
Frequently Asked Questions
How is in-hand salary calculated from CTC?▼
In-hand = Gross salary − Employee PF − Professional tax − Income tax TDS. Gross salary = Basic + HRA + Special allowance. For a ₹12L CTC: basic ≈ ₹4.8L, HRA ≈ ₹2.4L, special ≈ ₹2.4L = ₹9.6L gross. Deduct PF (₹57,600) + PT (₹2,400) = ₹9.54L net annual = ₹79,500/month (before TDS).
Is HRA fully exempt from tax?▼
HRA is partially exempt under Section 10(13A). The exempt amount is the minimum of: (1) actual HRA received, (2) rent paid minus 10% of basic salary, and (3) 50% of basic for metro cities (40% for non-metro). Under the new tax regime, HRA exemption is NOT available.
What is the PF contribution limit?▼
Both employee and employer contribute 12% of basic salary to PF. However, the employer's PF contribution above ₹7,500/month (₹90,000/year) is taxable in the employee's hands. Employees can voluntarily contribute more through VPF (same rate of interest as EPF).
How is gratuity calculated?▼
Gratuity = (last drawn salary × 15 × years of service) ÷ 26. 'Salary' here means basic + DA. Gratuity is payable after 5 years of continuous service and is exempt from tax up to ₹20 lakh. It is not part of monthly in-hand salary but is included in CTC.
What is the difference between EPF and NPS?▼
EPF (Employees' Provident Fund) is mandatory for companies with 20+ employees, offers ~8.25% interest, and allows tax-free withdrawal after retirement. NPS (National Pension System) is market-linked, offers higher returns potential, but has partial lock-in till age 60. Employer NPS contribution (up to 10% of salary) is a tax-free perk under Section 80CCD(2) in both old and new regimes.
CTC vs In-Hand Salary: Understanding the Difference
CTC (Cost to Company) is the total amount an employer spends on an employee annually. It includes your in-hand salary, employer's contribution to Provident Fund, gratuity accrual, and sometimes benefits like health insurance. In-hand (take-home) salary is what actually gets credited to your bank account — typically 70–80% of CTC.
The gap between CTC and take-home is primarily explained by three deductions: employee PF contribution (12% of basic salary, capped at ₹1,800/month for basic ≤ ₹15,000), Professional Tax (state-specific, ₹200/month in most states), and income tax TDS (which varies with your annual income and regime).
Typical CTC to Take-Home Comparison
| Annual CTC | Monthly gross | Monthly in-hand (approx) | Take-home % |
|---|---|---|---|
| ₹3.6L (₹30K/mo) | ₹30,000 | ₹25,500–₹27,000 | 85–90% |
| ₹6L (₹50K/mo) | ₹50,000 | ₹42,000–₹45,000 | 84–90% |
| ₹10L (₹83K/mo) | ₹83,333 | ₹66,000–₹72,000 | 79–86% |
| ₹12L (₹1L/mo) | ₹1,00,000 | ₹79,000–₹85,000 | 79–85% |
| ₹20L (₹1.67L/mo) | ₹1,66,667 | ₹1,22,000–₹1,32,000 | 73–79% |
| ₹30L (₹2.5L/mo) | ₹2,50,000 | ₹1,70,000–₹1,88,000 | 68–75% |
Range reflects variation in HRA city tier (metro vs non-metro) and whether TDS is deducted (depends on annual income and regime). No other income or deductions assumed.
Typical CTC Salary Structure in India
Most Indian employers structure salaries with similar components, though the exact ratios vary:
| Component | Typical % of CTC | Tax treatment |
|---|---|---|
| Basic salary | 35–50% | Fully taxable |
| HRA (House Rent Allowance) | 40–50% of basic | Exempt (formula-based) in old regime |
| Special allowance | Remaining amount | Fully taxable |
| LTA (Leave Travel Allowance) | 5–10% of basic | Exempt 2 times in 4-year block (old regime) |
| Employee PF contribution | 12% of basic (employer matches) | Deductible under 80C (old regime) |
| Employer PF contribution | 12% of basic | Part of CTC, not in-hand |
| Gratuity | 4.81% of basic | Part of CTC, paid on exit after 5 years |
| Professional tax (deducted) | Up to ₹2,400/year | Deductible from income |
Salary structure norms based on typical Indian IT and services sector practices. PF rates as per EPFO circular. Professional tax rates by state (Maharashtra: ₹200/month, Karnataka: ₹200/month; some states ₹0). Last reviewed: October 2025.