Enter your annual CTC and get your exact monthly in-hand salary after all deductions — PF, HRA, Professional Tax.
Your CTC (Cost to Company) is NOT what you take home. Understanding the difference between CTC, Gross Salary and Net/In-Hand Salary is essential for salary negotiations.
Since FY 2023-24 the new regime is the default, and for most salaried people earning up to ~₹15-16 LPA it now wins unless you have large deductions. Under the new regime, income up to ₹12 lakh is effectively tax-free after the Section 87A rebate, and the ₹75,000 standard deduction applies automatically. The old regime only makes sense if your combined deductions — HRA exemption, 80C (₹1.5L), NPS 80CCD(1B) (₹50K), home-loan interest — cross roughly ₹4-4.5 lakh a year.
Practical rule: if you live in rented accommodation in a metro with high rent AND max out 80C and NPS, compare both regimes before your investment-declaration deadline. If you have few deductions, take the new regime and stop doing tax-saving investments you don't otherwise want.
Say your CTC is ₹12,00,000. A typical structure: Basic ₹4,80,000 (40%), HRA ₹2,40,000, Special Allowance ₹3,28,000, Employer PF ₹57,600, Gratuity ₹23,088, insurance and other benefits making up the rest. Your gross salary (what's actually payable to you) is about ₹10.5 lakh — the employer PF, gratuity and insurance never hit your bank account.
From gross, subtract Employee PF (₹1,800/month if capped), Professional Tax (~₹200/month) and income tax. Under the new regime at this level, tax is roughly ₹60-70K for the year after standard deduction. Net effect: a "₹12 LPA" offer lands around ₹80,000-84,000 per month in hand — which is why comparing offers on CTC alone is a mistake. Always ask for the salary structure annexure and compare in-hand to in-hand.
CTC includes costs the employer bears on your behalf — Employer PF (12% of basic), Gratuity (4.81% of basic), health insurance premium, and other benefits. These never appear in your bank account but are part of your CTC.
Ask for higher special allowance and lower basic (reduces PF deduction). Claim all eligible tax exemptions — HRA, LTA, food coupons. Opt for National Pension Scheme (NPS) Section 80CCD(1B) for additional ₹50,000 deduction.
No — variable pay is paid out quarterly or annually based on company and individual performance, often at 80-100% of the stated amount but sometimes much lower. When comparing offers, calculate in-hand from fixed CTC only, and treat variable as upside. A ₹15 LPA offer with ₹3L variable is really a ₹12 LPA fixed offer.
Professional tax is a state-level tax on employment, capped at ₹2,500 per year. Karnataka, Maharashtra, West Bengal and most southern states charge it (typically ₹200/month); Delhi, Haryana and UP don't. It's deducted by your employer and is fully deductible from taxable income.
Yes — if your basic salary is ₹15,000 or below, PF is mandatory. If basic exceeds ₹15,000, you can opt out of PF at the time of joining (some companies allow this for new employees).