CTC to In-Hand Salary Calculator FY 2026-27

Got a job offer? Enter the CTC to estimate what actually reaches your bank account each month, after PF, gratuity, variable pay and tax.

Why in-hand salary is lower than CTC

Cost to Company (CTC) is everything the employer spends on you, including items you never receive monthly:

Employer PF: 12% of basic, deposited into your EPF account.
Gratuity: about 4.81% of basic, paid only when you leave after five or more years of service.
Variable pay or bonus: paid yearly or quarterly, often depending on performance.
Benefits: group insurance, meal cards and similar perks.

From the remaining fixed gross, your own PF contribution, professional tax and income tax are deducted before you get your salary.

Fixed gross = CTC − Employer PF − Gratuity − Variable pay − Benefits In-hand (monthly) = (Fixed gross − Employee PF − Professional tax − Income tax) ÷ 12

Example

A CTC of ₹12 lakh with basic at 40% (₹4.8 lakh) and full PF: employer PF ₹57,600 and gratuity ₹23,088 leave a fixed gross of ₹11.19 lakh. After ₹57,600 employee PF, ₹2,400 PT and no tax under the new regime (taxable ₹10.44 lakh is below the ₹12 lakh rebate limit), the in-hand is about ₹88,276 a month.

How salary structure changes your in-hand pay

A higher basic means more PF (a larger retirement corpus, but less cash now) and a higher gratuity. Capping PF at ₹1,800 a month increases in-hand pay. Under the old regime, a higher HRA helps only if you pay rent.

Frequently asked questions

What percentage of CTC is in-hand salary?

Typically 70–85% of CTC, depending on the PF structure, variable pay and your tax bracket. The calculator shows the exact share for your numbers.

Is gratuity always part of CTC?

Many companies include it, some do not. Check your offer letter. If gratuity is not in the CTC breakdown, untick the box.

How is variable pay taxed?

It is added to your salary in the year it is paid and taxed at your marginal slab rate. The calculator shows it separately, after the extra tax.

Results are estimates for information only and are not financial, tax or investment advice. Rates and rules change, so confirm figures with your bank, employer or a qualified professional before making decisions.