Convert your CTC into monthly and annual take-home pay, with the full employer-side and employee-side deduction breakdown.
Based on FY2026-27 rules · Last updated
Your CTC and your take-home salary are rarely the same number, and the gap between them is made up of specific, calculable components — not a mystery deduction. This calculator breaks down exactly where your CTC goes: employer contributions that never reach your bank account, and employee-side deductions that come out before you're paid.
Enter your annual CTC and a few assumptions about your salary structure and tax situation, and you'll get a full monthly and annual breakdown — the same components a real payslip shows.
Your In-Hand Salary
₹88,277 / month
Annual take-home: ₹10,59,323
CTC to In-Hand
88.3%
Monthly TDS
₹0
Employer-Side Deductions (Part of CTC, Not in Gross)
Gross Salary
Employee-Side Deductions
Net Salary (Take-Home)
Take-home is what's left after employer-side costs (PF, gratuity provision) are removed from CTC to get Gross Salary, and then employee-side deductions (your PF share, Professional Tax, and estimated TDS) are removed from Gross Salary.
Note: This calculator provides an estimate based on standard assumptions and FY2026-27 rules. Actual take-home pay depends on your employer's specific salary structure, applicable state Professional Tax, and your final tax declaration — use it for planning, not as a substitute for your payslip.
Example: on a ₹12,00,000 CTC with Basic at 40% under the new regime, monthly CTC is ₹1,00,000 and Basic is ₹40,000. Employer PF (₹4,800) and the gratuity provision (about ₹1,923) come out first, leaving gross salary of about ₹93,277. After employee PF (₹4,800) and Professional Tax (₹200), and no TDS because taxable income is within the ₹12 lakh rebate limit, in-hand salary is about ₹88,277 a month.
| Component | How it is calculated |
|---|---|
| Basic salary | CTC × Basic % (default 40%) |
| Employer PF | 12% of Basic (part of CTC, not paid out) |
| Gratuity provision | 15 × Basic ÷ 26 ÷ 12 per month |
| Employee PF | 12% of Basic |
| Professional Tax | ₹200 a month assumed (varies by state) |
| TDS | Annual tax for your chosen regime ÷ 12 |
CTC includes employer-side costs you never receive directly in hand — the employer's PF contribution, gratuity provision, and insurance premiums. Take-home salary is only the cash credited to your bank account after both employer-side amounts and your own deductions (PF, Professional Tax, TDS) are removed from CTC.
It assumes your Basic Salary is a percentage of CTC (adjustable, default 40%), that employer PF and gratuity provisioning follow the standard statutory formulas, and that TDS is calculated using current income tax slabs for your chosen regime. Your actual salary structure may differ — check your offer letter or payslip for the exact breakup your employer uses.
Learn more: Basic Salary
CTC (Cost to Company) is the total amount your employer spends on you in a year: gross salary plus employer PF, gratuity provision, insurance and other benefits. In-hand salary is what is credited to your bank account each month after employer-side costs and your own deductions (employee PF, Professional Tax and TDS) are removed. The in-hand figure is typically well below CTC, and the gap depends mainly on your Basic share, tax regime and state.
Start with monthly CTC (annual CTC ÷ 12). Subtract the employer-side items that are part of CTC but never paid out — employer PF and the gratuity provision — to get gross salary. From gross salary, subtract employee PF (12% of Basic), Professional Tax and monthly TDS. What remains is your in-hand salary. This calculator does each step for you and shows the full breakdown.
Professional Tax is levied by state governments, not the Centre, and the cap is ₹2,500 per year. Many employers deduct a flat ₹200 a month, with a higher amount in one month to reach the annual limit, but slabs and exemptions differ by state, and a few states do not levy it at all. This calculator assumes ₹200 a month; check your payslip for your state's actual amount.
MedleyHR calculates all of this automatically for your whole team — free for up to 10 employees. Start free →
We use cookies to understand how visitors use MedleyHR.com — page views, feature interest, and drop-off points. No personal data is sold. Privacy policy