About Contact
💼 Know Exactly What You Take Home

Free Salary Calculator
India 2026

Enter your CTC. See your exact monthly in-hand salary after PF, Professional Tax, and Income Tax deductions. Updated for FY 2025-26.

Salary Details

Monthly In-Hand Salary
85,000
Annual CTC
₹12.0L
– Employee PF
–₹86,400
– Income Tax
–₹0
– Prof. Tax
–₹2,400
Annual Take-Home
₹10.31L
💳
Maximize Your Salary with the Right Credit Card
Get 1–5% cashback on all spends. Best credit cards for salaried professionals:
HDFC Credit Cards → Axis Bank Cards →

How is In-Hand Salary Calculated from CTC?

Your CTC (Cost to Company) is NOT your take-home salary. Many components are deducted before the money reaches your account. Here's what's typically deducted:

DeductionAmountNotes
Employee PF contribution12% of Basic (typically 36% of CTC)Goes to your EPF account
Income Tax (TDS)As per slabDepends on regime & deductions
Professional Tax₹200/month (most states)Varies by state
Health insurance premiumVaries (₹500–₹3,000/month)If employer-provided group insurance requires contribution

Employer PF contribution (another 12% of basic) is part of your CTC but you never see it in hand — it goes directly to your EPF account and is available at retirement/resignation.

Typical CTC vs In-Hand Salary (FY 2025-26, New Regime)

Annual CTCMonthly In-Hand (Approx.)Annual Take-HomeTax Paid
₹5 Lakh₹38,500₹4.62L₹0
₹8 Lakh₹59,500₹7.14L₹0
₹12 Lakh₹85,000₹10.2L₹0
₹15 Lakh₹1,01,000₹12.12L₹45,000
₹20 Lakh₹1,27,000₹15.24L₹1,05,000
₹30 Lakh₹1,77,000₹21.24L₹3,15,000

*Approximate. Assumes basic = 40% of CTC, PF on full basic, professional tax ₹2,400/year, new tax regime with ₹75,000 standard deduction.

PF Explained — Where Does Your PF Money Go?

Both you and your employer contribute 12% of basic salary to your EPF (Employees' Provident Fund) account each month. Your 12% is deducted from your salary; employer's 12% is part of your CTC but an additional cost they bear.

Your EPF earns 8.25% interest (FY 2025-26) — tax-free. This is actually an excellent return for a risk-free instrument. The money is accessible penalty-free after 5 years of service, or upon retirement/resignation after proper cooling period.

💡 Pro Tip: If your employer allows VPF (Voluntary Provident Fund), contributing extra to VPF gives you 8.25% tax-free returns — better than most FDs. Use our Tax Calculator to see how VPF saves you additional tax under 80C.

New vs Old Regime — Impact on Take-Home Salary

For most salaried employees with a CTC below ₹15 lakh and limited deductions, the New Tax Regime typically results in higher take-home salary in FY 2025-26, because income up to ₹12 lakh (after ₹75,000 standard deduction) is effectively tax-free.

The Old Regime is better if you have significant HRA exemption, home loan interest deduction (₹2L under Section 24), and maximum 80C investment (₹1.5L). In such cases, total deductions can reach ₹4–5L, reducing taxable income substantially.

📖 Related Guide: How to Save Maximum Income Tax in India 2026 →

Frequently Asked Questions

What percentage of CTC do I actually take home?
For most salaried employees in the ₹6–15L CTC range with the new tax regime, take-home is 82–88% of CTC after PF and professional tax. As CTC increases and tax kicks in, this ratio can drop to 70–75% for higher earners.
Is employer PF part of CTC?
Yes. In most companies, employer PF contribution (12% of basic) is included in your CTC. This means you should subtract both employee PF and employer PF from CTC to get your gross salary, and then further deduct income tax and professional tax to get take-home.
How does gratuity affect CTC?
Many companies include gratuity in CTC. Gratuity = (basic × 15/26 × years of service). You only receive it after completing 5 years of continuous service with the same employer. Until then, it reduces your effective take-home if included in CTC calculation.
👨‍💼
CalcBharat.com Finance Team
Payroll & HR Finance Experts
Salary calculations are approximate and vary by company, state, and individual components. Actual in-hand salary may differ based on your specific pay structure. Consult your HR or payslip for exact figures. Last updated: April 2026.