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Calculate your net monthly salary (in-hand pay) from CTC. Understand your salary structure, deductions, and tax impact with visual breakdowns.
Total annual package including all components
Basic is typically 40-50% of CTC. PF and gratuity are calculated on Basic.
HRA is typically 20-30% of CTC for metro cities.
Gross Salary
₹12,00,000
Annual
Total Deductions
₹1,56,720
PF + PT + TDS
Net Annual
₹10,43,280
After all deductions
Net Monthly
₹86,940
Take home per month
In India, a typical salary is structured into multiple components to optimize taxes and benefits. Understanding these components helps you negotiate better and plan your finances effectively. Employers design salary packages considering tax efficiency, retirement benefits, and compliance with labour laws.
Input your annual Cost to Company (CTC), adjust Basic and HRA percentages, and select your tax regime.
See how your salary is split into Basic, HRA, Allowances, and how much goes to deductions.
Get your exact net monthly salary after PF, Professional Tax, and Income Tax (TDS) deductions.
The total amount a company spends on an employee annually. It includes all salary components, employer PF contribution, gratuity, insurance, and other benefits. This is NOT your take-home salary.
Includes:
The total earnings before any deductions. It is derived from CTC minus employer-specific contributions like employer PF, gratuity, and insurance premiums.
Formula:
Gross = Basic + HRA + Allowances + Bonuses
This is the amount on which your income tax is calculated.
The actual amount credited to your bank account after all deductions. This is what you can spend, save, or invest.
Formula:
Net = Gross - PF - PT - TDS - Other Deductions
Typically 75-85% of your CTC depending on your tax bracket.
Typically 40-50% of CTC. Foundation for PF, gratuity, and HRA calculations. Fully taxable.
Typically 20-30% of CTC. Tax exemption available under Old Regime based on rent paid and city type.
Common in government jobs. Adjusted for inflation. Fully taxable. Added to Basic for PF calculation in some cases.
Balance amount to make up the CTC. Includes conveyance, medical, and other allowances. Mostly taxable.
Tax exempt for domestic travel twice in a block of 4 years. Available only under Old Regime.
Variable component based on individual or company performance. Fully taxable when paid out.
12% of (Basic + DA) contributed by employer. Part of CTC but not part of your gross salary.
Statutory benefit after 5 years of service. Exempt up to ₹20 Lakhs under Section 10(10).
Employer-provided group health insurance. Premium paid by employer is a taxable perquisite.
Both employee and employer contribute 12% of (Basic + DA) to the Employees' Provident Fund (EPF). The employee contribution (12%) is deducted from your salary. This amount earns tax-free interest and is eligible for tax deduction under Section 80C. PF is a key retirement savings tool for salaried employees.
A state-level tax deducted from salary. The amount varies by state, typically ranging from ₹200 to ₹2,500 per year. Not applicable in all states (e.g., Delhi, Haryana, Punjab do not levy PT). It is deductible from taxable income under Section 16(iii) in the Old Regime.
Income tax deducted by your employer based on your estimated annual tax liability. The rate depends on your taxable income, tax regime (Old vs New), and eligible deductions. Your employer issues Form 16 which summarizes the TDS deducted during the financial year.
Applicable if your monthly gross salary is ₹21,000 or less. Employee contributes 0.75% and employer contributes 3.25% of the gross salary. It provides medical, sickness, maternity, and disability benefits to employees and their families. Common in manufacturing and certain service sectors.
The New Regime is now the default. If your annual investments and deductions (80C + 80D + HRA + home loan) are less than approximately ₹3.5-4 Lakhs, the New Regime will likely give you a higher take-home salary. Use our calculator above to compare the impact on your net pay.
A: CTC (Cost to Company) is the total amount your employer spends on you, including employer PF, insurance, and other benefits. Take-home (net) salary is what you actually receive after deducting employee PF, professional tax, and income tax (TDS). Typically, take-home is 75-85% of your CTC.
A: Most companies keep Basic at 40-50% of CTC because PF (12%), gratuity, and sometimes HRA are calculated on Basic. A higher Basic means higher retirement benefits but also higher tax liability since Basic is fully taxable. Companies balance this to optimize both employee benefits and tax efficiency.
A: You can increase take-home by: (1) Opting for the New Tax Regime if you have few deductions, (2) Utilizing tax-free allowances like LTA, (3) Claiming HRA exemption by paying rent (Old Regime), (4) Investing in 80C instruments like PPF, ELSS, or NPS (Old Regime), (5) Claiming health insurance under 80D (Old Regime).
A: Gratuity is not deducted monthly like PF. Employers typically show a notional gratuity component in your CTC, but it is only paid when you leave the company after completing 5 years of continuous service. The amount is calculated as (Basic + DA) × 15 × Years of Service / 26.
A: Under the New Tax Regime, income up to ₹12 Lakhs is effectively tax-free due to the ₹75,000 standard deduction and ₹60,000 Section 87A rebate. Under the Old Regime, income up to ₹5 Lakhs is tax-free with the ₹12,500 rebate, but you can earn more tax-free by utilizing deductions like 80C, 80D, and HRA.
A: Yes, if your monthly gross salary is ₹21,000 or below, 0.75% of your gross salary is deducted as employee ESIC contribution. This is in addition to PF, PT, and TDS. However, ESIC provides valuable medical and cash benefits during sickness, maternity, and disability.
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