Salary In-Hand Calculator India 2025

Q: What is PF (Provident Fund)?

EPF deducts 12% of Basic salary from your paycheck. Employer contributes another 12%. Both go into your retirement savings, earning 8-8.5% interest yearly.

How to Calculate In-Hand Salary from CTC

CTC = your full company cost (annual)
Subtract employer contributions — PF (12% of basic), gratuity (4.81% of basic) — these are part of CTC but don't reach you monthly
This gives Gross Salary
Subtract employee deductions — your PF (12% of basic), professional tax, income tax
Final = In-hand salary ÷ 12 for monthly

Typical Salary Structure in India

Income components

Basic Salary (40-50% of CTC) — base on which PF and other components are calculated
HRA (House Rent Allowance) — usually 40-50% of basic (tax-saving in old regime)
Special Allowance — balancing component to reach CTC target
Bonus / Variable Pay — 10-25% of CTC
LTA, food coupons, fuel reimbursement — optional

Deductions from gross

PF (Employee) — 12% of Basic (₹1800/mo if Basic ≤ ₹15K)
Professional Tax — ₹200/mo (Karnataka, Maharashtra), ₹208/mo (Tamil Nadu), state-specific
Income Tax (TDS) — based on slab + regime
Insurance premium — if company provides paid medical (rare)

New Tax Regime Slabs FY 2025-26 (Default)

Up to ₹4 lakh — 0%
₹4-8 lakh — 5%
₹8-12 lakh — 10%
₹12-16 lakh — 15%
₹16-20 lakh — 20%
₹20-24 lakh — 25%
Above ₹24 lakh — 30%

Plus 4% Health & Education Cess. Standard deduction ₹75,000. Section 87A rebate makes tax ZERO up to ₹12 lakh taxable income.

Frequently Asked Questions

How is in-hand salary calculated from CTC?

In-hand = CTC − Employer PF − Gratuity − Employee PF − Professional Tax − Income Tax. Typically 70-85% of CTC depending on tax regime, city, and bonus structure.

What's the difference between gross and net salary?

Gross salary = CTC − Employer's share of PF and gratuity. Net (in-hand) salary = Gross − Employee PF − Professional Tax − Income Tax. Net is what actually hits your bank account.

What is PF (Provident Fund)?

EPF deducts 12% of your Basic salary from your paycheck. Your employer contributes another 12%. Both go into your retirement savings, earning 8-8.5% interest yearly. You can withdraw after retirement or partial withdrawal under specific cases (medical, marriage, home purchase).

Should I choose old or new tax regime?

New regime is default and works best for most people earning under ₹12 lakh (zero tax with 87A rebate). Old regime is better if you have ₹2L+ in deductions (80C, 80D, HRA exemption, home loan interest). Compare both in the calculator.

Is HRA fully tax-free?

In old regime, HRA exemption = min of: (a) HRA received, (b) Rent paid − 10% of Basic, (c) 50% of Basic for metro / 40% for non-metro. In new regime, HRA is fully taxable.

What is gratuity?

Gratuity is a lump sum paid by your employer when you leave after 5+ years of service. Formula: 15 days basic salary per year of service. Up to ₹20 lakh is tax-free. It's part of CTC but you only receive it when leaving.

Your CTC Details

Detailed Breakdown (Annual)

Old vs New Regime