Salary / CTC Calculator

CTC (Cost to Company) is the total amount a company spends on an employee including salary, PF contribution, gratuity, insurance, and other benefits. In-hand salary (take-home) is what you actually receive after deducting employee PF (12% of basic), professional tax (up to ₹200/month), and income tax (TDS). Typically, in-hand salary is 70–80% of CTC.

Employee PF contribution is 12% of the basic salary + DA (Dearness Allowance). The employer also contributes 12%, of which 8.33% goes to EPS (Employee Pension Scheme, capped at ₹1,250/month) and 3.67% to EPF. PF is only applicable if basic salary is up to ₹15,000; beyond that, contribution is optional.

Professional tax is a state-level tax levied on salaried employees. The maximum is ₹2,400 per year (₹200/month). Not all states levy professional tax — Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Tamil Nadu, Gujarat, and Telangana are the major ones. It is deducted by the employer.

Under the New tax regime for FY 2026-27, the standard deduction is ₹75,000. Under the Old regime, it is ₹50,000. This is a flat deduction from gross salary income before calculating tax, available to all salaried individuals without needing any proof or investment.

Gratuity = (Last drawn salary × 15 × Years of service) / 26. 'Last drawn salary' means basic + DA. It is payable after 5 years of continuous service. The maximum tax-exempt gratuity under the Payment of Gratuity Act is ₹20 lakh.