In-Hand Salary Calculator

Start with the annual CTC and subtract the employee provident fund contribution, ESI where applicable, professional tax, and income tax. What remains, divided by twelve, is the monthly in-hand salary. CTC also includes the employer's PF share and other costs you never receive as cash, which is why in-hand pay is always lower than the CTC figure in the offer letter.

The employee contributes 12 per cent of basic salary plus dearness allowance. Many employers apply this only up to the statutory wage ceiling of Rs 15,000 a month, so the deduction is capped at Rs 1,800 a month. Employers may also contribute on the full basic, which raises the deduction accordingly.

The new regime has lower slab rates and a larger standard deduction but removes most exemptions. The old regime is usually better only if you claim substantial HRA on rent actually paid, along with 80C and 80D deductions. The calculator works out both and shows which leaves you with more each month.

Most Indian employers set basic at 40 to 50 per cent of CTC. The Code on Wages expects basic to be at least 50 per cent of total remuneration. A higher basic increases PF and gratuity but reduces immediate take-home pay.

No. Professional tax is levied by state governments, and states including Delhi, Haryana, Uttar Pradesh and Rajasthan do not charge it. Where it applies, the maximum is Rs 2,500 a year under the Constitution.