See how your annual CTC turns into a monthly salary credit – what goes to PF, gratuity, professional tax and income tax, and what reaches your bank account.
TDS is the year’s tax spread evenly over 12 months; employers recalculate it when you declare investments or receive a bonus.
Employers may also include EDLI and PF admin charges (about 1% of PF wages) or insurance premiums in CTC; subtract them from CTC first if yours does.
Gratuity is paid only when you leave after five years (one year for fixed-term contracts), so it is not part of monthly pay.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.
How CTC becomes in-hand salary
Take out what you never receive monthly: employer PF (12% of basic) and the gratuity provision (15/26 of a month’s basic per year, about 4.81% of basic).
What is left is gross salary – basic + DA, HRA and special allowances (plus any variable pay, paid separately).
Deduct your own PF (12% of basic, or 12% of ₹15,000 if your employer caps it), professional tax (state-set, at most ₹2,500 a year) and TDS – the year’s income tax spread over 12 months.
Worked example: ₹12 lakh CTC
CTC ₹12,00,000, basic 50%, full PF, new regime
Employer PF is ₹72,000 and the gratuity provision about ₹28,850, leaving a gross salary of about ₹10.99 lakh. Taxable income after the ₹75,000 standard deduction is under ₹12 lakh, so TDS is nil and the monthly in-hand salary is ₹85,396.
In-hand salary per month₹85,396new tax regime
In-hand per year
₹10,24,754
Income tax for the year
₹0₹0 TDS a month
Employee PF per month
₹6,000
Item
Per month
Per year
Annual CTC
₹1,00,000
₹12,00,000
Employer PF (12%)
₹6,000
₹72,000
Gratuity provision
₹2,404
₹28,846
Basic + DA
₹50,000
₹6,00,000
HRA
₹20,000
₹2,40,000
Special and other allowances
₹21,596
₹2,59,154
Gross monthly salary
₹91,596
₹10,99,154
Employee PF (12%)
−₹6,000
−₹72,000
Professional tax
−₹200
−₹2,400
Income tax (TDS)
₹0
₹0
In-hand salary
₹85,396
₹10,24,754
At a CTC of ₹20 lakh the in-hand pay is about ₹1,29,340 a month, after ₹1,57,439 of income tax for the year.
In-hand salary by CTC (new regime)
Annual CTC
In-hand per month
Income tax per year
₹6 lakh
₹42,600
nil
₹10 lakh
₹71,130
nil
₹12 lakh
₹85,400
nil
₹15 lakh
₹1,00,300
₹77,835
₹20 lakh
₹1,29,340
₹1,57,439
₹30 lakh
₹1,80,700
₹3,97,139
Assumes basic at 50% of CTC, PF on full basic, gratuity included and ₹200 a month professional tax. Change any of these in the calculator.
Questions people ask
What is the in-hand salary for ₹12 lakh CTC?
About ₹85,400 a month, assuming 50% basic, 12% PF on full basic, gratuity in the CTC and ₹200 professional tax. Income tax is nil in the new regime because the taxable salary stays under ₹12 lakh.
What is the in-hand salary for ₹20 lakh CTC?
About ₹1,29,300 a month in the new regime with the same assumptions – income tax is roughly ₹1,57,400 for the year, or ₹13,100 a month.
Why is my in-hand pay so much lower than CTC ÷ 12?
CTC includes the employer's PF and the gratuity provision, which never reach your monthly salary, and your own 12% PF, professional tax and TDS come out of the gross.
Did the new labour codes change my salary?
Since 21 November 2025, allowances above 50% of total pay count as wages for PF and gratuity. Many employers raised basic to about 50% of pay, which increases PF and gratuity but can reduce monthly take-home.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.
