In-hand salary calculator: CTC to take-home
How much of my CTC will I actually get every month?
90.2% of the CTC reaches your account · ₹1.15 L a year goes to your EPF
From CTC to take-home, for the year
- CTC
- ₹12,00,000
- Employer's PF (incl. EPS)
- ₹57,600
- Gross salary
- ₹11,42,400
- Your PF
- ₹57,600
- Professional tax
- ₹2,400
- Income tax (new regime)
- ₹0
- In hand for the year
- ₹10,82,400
How this is calculated
Rules checked against their sources on 29 September 2026. Tax year FY2026-27.
CTC is not salary
Cost to company is what the employer spends on you. It includes their share of provident fund, sometimes a gratuity provision, sometimes their NPS contribution, insurance premiums, and occasionally the canteen. None of that reaches your bank account. What does is gross salary less your own PF, professional tax and income tax. On a ₹12 lakh CTC the take-home is typically ₹80,000 to ₹85,000 a month, not ₹1 lakh.
The four deductions
Employer's PF. 12% of basic and DA, of which 8.33% of wages up to ₹25,000 goes to the pension scheme. If the offer letter counts it in CTC, it comes off first.
Your PF. Another 12% of basic and DA. It is your money, but it goes to EPF, not to your account. Both shares are exempt from tax within limits.
Professional tax. A state levy of up to ₹2,500 a year in most large states, deducted monthly and deductible in the old regime.
Income tax. On the gross salary, after the standard deduction, under whichever regime is cheaper for you. For FY2026-27 a salary of ₹12.75 lakh pays nothing under the new regime; above that the slabs climb in ₹4 lakh steps to 30% at ₹24 lakh.
Why basic matters
Everything statutory keys off basic and DA: both PF shares, gratuity, HRA limits and the employer's NPS deduction. A structure with a low basic and high allowances raises take-home a little and lowers retirement contributions a lot. When comparing offers, compare the basic as well as the CTC.
Negotiating what counts
The employer's NPS contribution under 80CCD(2) is the one component that is tax-free to you in both regimes, up to 14% of basic in the new regime. If a company offers it, taking it in place of taxable allowance raises your total pay after tax even though it lowers the monthly credit.
How this fits a retirement plan
Take-home is what funds your life today; PF and NPS fund the life after work. A retirement plan needs both, and the Eazyretire setup asks for salary the way your payslip shows it so the split is right.
Questions people ask
- Why is my take-home so much lower than CTC ÷ 12?
- Because the employer's PF (and sometimes gratuity and insurance) is inside the CTC figure, your own PF is deducted, and then professional tax and income tax. On a ₹12 lakh CTC with a 40% basic, PF alone removes about ₹1.15 lakh a year across both shares before tax.
- Is the employer's PF part of CTC?
- Usually, in the private sector. Check the offer letter: if 'Employer PF' or 'Retirals' appears as a line, it is inside the CTC and this calculator should have that switch on. Government and many PSU offers quote gross pay instead.
- Which regime does the calculator use?
- The cheaper one for your numbers, unless you pick one. With only PF and the standard deduction the new regime wins for almost everyone; add HRA, home-loan interest or 80C beyond PF in the 'other deductions' box to see whether the old regime catches up.
- What about variable pay and bonus?
- They are paid when earned, often once a year, and taxed as salary. Enter the fixed CTC for a monthly figure you can rely on, or the whole CTC for the annual average.
- Is gratuity really deducted from CTC?
- Some employers show 4.81% of basic as a gratuity provision inside CTC. It is not deducted from your pay; it is money they set aside, payable only if you complete five years. Switch it on if your offer letter lists it.
Want the whole picture?
A free Eazyretire plan puts this number next to your income, savings and spending and tells you whether your money lasts to the age you plan for, and what to change if it will not.