How is Employee Provident Fund (EPF) calculated?

Standard EPF contribution is 12% of the Basic Salary (+ Dearness Allowance, if applicable). A matching 12% is contributed by the employer, part of which goes to the Employees’ Pension Scheme (EPS).

What is Professional Tax (PT) in India?

Professional Tax is a state-level statutory tax levied on salaried professionals. It varies by state (up to a statutory cap of ₹2,500 annually) and is deducted monthly by employers (e.g., ₹200/month in most states).

How does tax regime selection (Old vs New Regime) affect take-home salary?

The New Tax Regime offers lower concessional tax slabs but eliminates most exemptions (such as HRA, 80C, 80D). The Old Tax Regime allows extensive deductions if you pay house rent or make specified tax-saving investments.

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Salary & In-Hand Pay Calculator

Estimate monthly net take-home salary from annual Cost to Company (CTC) with standard Indian Basic, HRA, Employee PF, and statutory deductions.

Monthly In-Hand = [Gross Monthly Salary − (Employee PF + Professional Tax + TDS)]

SALARY CONFIGURATION

PAYROLL ESTIMATE

COMPENSATION INPUT TYPE

ANNUAL CTC (₹) *

₹

Basic Salary (% of Gross)

HRA (% of Basic)

Employee PF (% of Basic)

Professional Tax (Monthly ₹)

TAKE-HOME SALARY BREAKDOWN

Estimated in-hand monthly & annual compensation

ESTIMATED MONTHLY IN-HAND SALARY

₹93,800

Estimated Annual In-Hand: ₹11,25,600

Monthly Earnings (Gross: ₹1,00,000)

Basic Salary₹50,000

House Rent Allowance (HRA)₹20,000

Special / Other Allowances₹30,000

Monthly Deductions (Total: ₹6,200)

Employee Provident Fund (PF)-₹6,000

Professional Tax (PT)-₹200

Net In-Hand (Monthly)₹93,800

ESTIMATE ONLY: Actual take-home salary varies based on individual tax regimes (New vs Old), employer NPS contributions, insurance schemes, and state tax rules. This is not official tax or legal advice.

Understanding Salary & In-Hand Pay Calculator

Understanding Indian Compensation Structure (CTC vs In-Hand)

In India, an employment offer letter typically quotes compensation in terms of Cost to Company (CTC). However, the actual monthly amount deposited into an employee’s bank account is notably different due to statutory deductions and mandatory retirement fund contributions.

A standard compensation structure typically allocates 40%–50% of CTC to Basic Pay, 20%–25% to House Rent Allowance (HRA), with the remainder structured into Special Allowances and statutory Employee Provident Fund (EPF) deductions.

This calculator helps both employees evaluating job offers and HR managers structuring compensation packages to compute net take-home pay with transparent component breakdown.

Key Highlights

Instant monthly take-home salary estimate from annual CTC
Breakdown of Basic Pay, HRA, and Special Allowances
Automatic Employee PF (12% of Basic) calculation
Professional Tax (PT) deduction inclusion
Copyable salary slip summary

Mathematical Formula

In-Hand Pay = Gross Monthly Earnings − (EPF 12% + Professional Tax + Monthly TDS)

Gross Monthly Earnings include monthly Basic Pay, HRA, and Special Allowance. Total deductions are subtracted to derive net payable salary.

How to Use the Salary & In-Hand Pay Calculator (Step-by-Step)

01Step 1

Enter the total Annual CTC (Cost to Company) in Indian Rupees (₹).

02Step 2

Review the standard Basic Pay (typically 40%–50%) and HRA allocations.

03Step 3

Verify monthly EPF deduction (12% of Basic) and state Professional Tax.

04Step 4

Review your estimated Monthly In-Hand Salary and annual take-home compensation.

Practical Real-World Calculation Examples

Junior Software Engineer (₹6,00,000 CTC)

Case #1

Scenario: An entry-level developer receives an offer of ₹6 LPA with standard 40% Basic pay.

Gross/mo: ₹50,000 | Basic: ₹20,000 | EPF (12%): ₹2,400 | PT: ₹200

Result: Monthly In-Hand: ~₹47,400 (pre-income tax)

Senior Product Designer (₹15,00,000 CTC)

Case #2

Scenario: A design lead receives ₹15 LPA compensation package.

Gross/mo: ₹1,25,000 | Basic: ₹50,000 | EPF: ₹6,000 | PT: ₹200

Result: Monthly In-Hand: ~₹1,18,800 (pre-income tax)

Marketing Specialist (₹4,50,000 CTC)

Case #3

Scenario: A digital marketing executive receives ₹4.5 LPA offer.

Gross/mo: ₹37,500 | Basic: ₹15,000 | EPF: ₹1,800 | PT: ₹200

Result: Monthly In-Hand: ~₹35,500 (pre-income tax)

Important Notes, Assumptions & Disclaimers

Income tax (TDS) calculations depend on individual tax regime selection (Old vs New), total taxable deductions (80C, 80D), and annual investment declarations.
Gratuity (if part of CTC) is typically retained by employers until completion of 5 years of continuous service.

Notice: Salary computations are realistic estimations based on standard Indian corporate payroll structures. Exact take-home pay is determined by employer payroll policies, tax regime choices, and individual tax declarations.

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Frequently Asked Questions

Salary & In-Hand Pay Calculator FAQs

Cost to Company (CTC) is the total annual expenditure an employer incurs on an employee, including basic pay, allowances, employer PF contribution, gratuity, and insurance. In-Hand Salary is the actual cash deposited into the employee’s bank account after deducting employee PF, professional tax, and income tax (TDS).

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