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Salary / Take-Home Calculator

Ever wondered why your in-hand salary is much lower than your offered CTC (Cost to Company)? Use this calculator to decode your salary structure and find out exactly how much will hit your bank account every month.

Salary Parameters
₹
50%
0%

Standard practice for most companies

Monthly In-Hand Salary

₹85,596

Pre-tax estimated take-home pay

Monthly Salary Breakdown

Earnings

Basic Salary₹50,000
HRA (House Rent Allowance)₹25,000
Special Allowance₹16,596
Gross Salary₹91,596

Deductions

Employee PF Contribution-₹6,000
Net Salary (Pre-Tax)₹85,596

Hidden CTC Components

Employer PF Contribution₹6,000
Gratuity Accrual₹2,404

CTC vs Gross vs Net Salary

• CTC (Cost to Company) is the total amount the company spends on you, including hidden components like Employer PF contributions and Gratuity. • Gross Salary is your CTC minus the employer's contributions. This is the amount shown on your payslip before deductions. • Net Salary (Take-Home) is the Gross Salary minus your deductions (like Employee PF, Professional Tax, and Income Tax).

Common Deductions

The most significant deduction from your CTC is usually the Provident Fund (PF). Both you and your employer typically contribute 12% of your Basic Salary to the PF account. Gratuity (usually 4.81% of basic) is another component kept by the company and paid out only if you leave after 5 years of continuous service.

Frequently Asked Questions

Why is my take-home salary so low compared to my CTC?

Your CTC includes the Employer's contribution to PF and Gratuity, which are not paid to you monthly. Additionally, your own PF contribution and Income Tax (TDS) are deducted from your Gross Salary, resulting in a lower take-home pay.

What is a good Basic Salary percentage?

A Basic Salary of 40% to 50% of your CTC is considered standard in India. A higher Basic Salary means higher PF deductions (lowering in-hand pay but increasing retirement savings), while a lower Basic Salary might reduce your tax-saving capacity under HRA.

Does this calculator deduct Income Tax?

This calculator focuses on the structural breakdown from CTC to Pre-Tax Take-Home pay. Income tax (TDS) depends entirely on your chosen tax regime and total investments, which can vary wildly. To calculate your exact income tax, please use our dedicated Income Tax Calculator.