Salary Calculator
Calculate in-hand salary from CTC. Includes EPF, gratuity, HRA, bonus, and tax deductions for both old and new tax regimes.
Salary Details
₹
Cost to Company (annual package)% of CTC
Performance bonus (0-50%)Optional if basic salary exceeds ₹15,000
Allows 80C, HRA, etc.
💰
Enter your CTC to calculate in-hand salary
Understanding CTC Components
What is CTC?
CTC (Cost to Company) is the total amount your employer spends on you annually, including salary, benefits, and statutory contributions. Your in-hand salary is typically 65-80% of CTC.
CTC Components
- Basic Salary: 40-50% of CTC (foundation for all calculations)
- HRA (House Rent Allowance): 40-50% of Basic (partially tax-exempt)
- Special Allowance: Remaining amount to reach Gross (fully taxable)
- Bonus / Variable Pay: Performance-based (5-30% of CTC)
- EPF (Employer): 12% of Basic (not in your account, but counted in CTC)
- Gratuity: 4.81% of Basic (paid on leaving after 5 years)
Deductions from Gross Salary
- EPF (Employee): 12% of Basic (locked till retirement/job change)
- Professional Tax: ₹200/month (₹2,400/year) in most states
- Income Tax (TDS): Based on tax regime and total income
EPF Calculation
- Employee Contribution: 12% of Basic (deducted from salary)
- Employer Contribution: 12% of Basic split as:
- 3.67% → EPF Account (retirement corpus)
- 8.33% → EPS (Employee Pension Scheme)
- Opt-Out: Allowed if Basic > ₹15,000 (uncommon, loses retirement benefit)
HRA Tax Exemption
- Least of: (a) Actual HRA received, (b) 50% of Basic (metros) / 40% (non-metros), (c) Rent paid - 10% of Basic
- Only if you're paying rent (owner-occupied = no exemption)
- Rent receipts needed if rent > ₹1L/year
Gratuity
- Paid on leaving the company after 5 years of service
- Formula: (Basic × Years of Service × 15) ÷ 26
- Max: ₹20 lakh (tax-free)
- Included in CTC but received only on exit
Old vs New Tax Regime
| Feature | Old Regime | New Regime |
|---|---|---|
| Deductions (80C, HRA) | ✓ Allowed | ✗ Not Allowed |
| Tax Rates | Higher | Lower |
| Standard Deduction | ₹50,000 | ₹50,000 |
| Best For | Tax planning | Simple filing |
Sample CTC Breakdown
CTC: ₹12,00,000/year
| Basic Salary (40%) | ₹4,80,000 |
| HRA (50% of Basic) | ₹2,40,000 |
| Special Allowance | ₹3,36,400 |
| Bonus (10%) | ₹1,20,000 |
| EPF Employer (3.67%) | ₹17,616 |
| Gratuity (4.81%) | ₹23,088 |
| Total CTC | ₹12,00,000 |
Deductions: EPF ₹57,600 + Tax ~₹1,20,000 + PT ₹2,400 = ~₹1,80,000
In-Hand: ~₹8,40,000/year (₹70,000/month) = 70% of CTC
Why In-Hand > CTC?
- EPF Employer + Gratuity: 8-10% (not liquid, retirement/exit benefit)
- EPF Employee: 12% of Basic (~5% of CTC)
- Income Tax: 10-30% depending on salary
- Professional Tax: ~₹2,400/year
- Total Difference: 20-35% of CTC
Tips to Maximize In-Hand
- Choose new tax regime if no investments (saves 5-10%)
- Claim HRA exemption (if paying rent)
- Maximize 80C deductions (EPF, PPF, ELSS, insurance)
- Submit investment declarations on time
- Keep rent receipts (if HRA claimed)