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.