Salary Calculator: CTC to In-Hand Salary FY 2026-27
Enter your CTC to see your monthly take-home pay after PF and income tax, with the new ₹25,000 PF wage ceiling.
Rules applicable for FY 2026-27, last updated 28 Oct 2026
Your take-home pay
See the full breakdown
| Component | Monthly | Yearly |
|---|---|---|
| Employer PF | ₹3,000 | ₹36,000 |
| Gratuity | ₹2,404 | ₹28,846 |
| Gross salary paid | ₹94,596 | ₹11,35,154 |
| − Your PF | ₹3,000 | ₹36,000 |
| In-hand for the year | ₹91,596 | ₹10,99,154 |
Your result explained
The monthly figure is your fixed take-home pay after your PF contribution and income tax (TDS). Variable pay and the extra tax it causes are shown separately because they are usually paid once or twice a year.
Worked example
Suppose your CTC is ₹12,00,000, basic pay is 50% of CTC and you choose the new tax regime.
- Basic pay is ₹6,00,000 a year (₹50,000 a month). PF is capped at the ₹25,000 wage ceiling, so your employer adds ₹36,000 a year.
- Gratuity accrues at 15/26 of a month's basic per year: ₹28,846.
- Gross salary paid is ₹11,35,154. After the ₹75,000 standard deduction your taxable income is within ₹12 lakh, so the rebate brings income tax to ₹0.
- After your own PF of ₹36,000, you take home ₹10,99,154 a year, or ₹91,596 a month.
How it is calculated
- Basic pay = CTC × basic %. PF wages are basic + DA, capped at ₹25,000 a month (Gazette notification S.O. 5109(E) under section 2(89) of the Code on Social Security, 2020, in force from 17 Sep 2026; earlier ₹15,000).
- Employer PF = 12% of PF wages (8.33% to the pension scheme, 3.67% to your PF account). Your PF = 12% of PF wages.
- Gratuity = basic × 15 ÷ 26 per year ≈ 4.81% of basic (15 days' wages per year of service, section 53 of the Code on Social Security, 2020).
- Gross salary = CTC − employer PF − gratuity − employer NPS.
- Income tax is worked out with the same rules as our income tax calculator for FY 2026-27: standard deduction, employer NPS up to 14% (new) or 10% (old) of basic, and in the old regime your PF counts towards the ₹1,50,000 limit under section 123. Employer PF and NPS above ₹7.5 lakh a year are added back as a taxable perquisite.
- In-hand = gross salary − your PF − income tax. Monthly in-hand uses fixed pay only.
Professional tax, ESIC, EDLI and PF admin charges, meal cards and other reimbursements are not included. Your payslip may also differ month to month as your employer adjusts TDS.
Frequently asked questions
How is in-hand salary calculated from CTC?
Start with your CTC and remove the parts your employer pays but you never receive as salary: the employer's PF contribution, gratuity and any employer NPS contribution. What is left is your gross salary. From that, subtract your own PF contribution and income tax (and professional tax, if your state levies it) to get your take-home pay. Divide the fixed part by 12 for the monthly figure.
Why is my monthly in-hand salary much lower than CTC divided by 12?
CTC includes money that is not paid to you every month: the employer's PF share, gratuity (paid only when you leave after qualifying service), employer NPS and variable pay or bonus. Your own PF contribution and TDS are then deducted from what remains.
How much PF is deducted from my salary?
You contribute 12% of your PF wages (basic pay plus DA), and your employer adds another 12%. From 17 September 2026 the statutory wage ceiling is ₹25,000 a month (it was ₹15,000), so the usual maximum is ₹3,000 a month each, unless your employer contributes on your full basic pay.
Is gratuity part of my CTC?
Many employers include gratuity in CTC at about 4.81% of basic pay, which is 15 days' basic for each year of service. It is not paid monthly; you receive it when you leave after qualifying service. Check your offer letter to see whether your CTC includes it.
Do the new labour codes reduce take-home pay?
They can. Under the Code on Social Security, 2020, in force from 21 November 2025, allowances above half of your total pay are added back to 'wages', which can raise the base for PF and gratuity when basic pay is low. Because PF is usually capped at the ₹25,000 wage ceiling, the effect on monthly take-home is often small, but gratuity can increase.
Is the employer's PF contribution taxable?
No, up to a limit. Employer contributions to PF, NPS and approved superannuation funds are tax-free up to ₹7.5 lakh a year in total; anything above that is taxed as a perquisite. Employer NPS is also deductible up to 14% of basic plus DA in the new regime.
Which tax regime gives higher take-home pay?
For most salaried people with few deductions, the new regime gives higher take-home pay. If you claim large HRA, home loan interest and full section 80C investments, the old regime can be better. Use our income tax calculator to compare both regimes with all your deductions.
Does this calculator include ESIC and professional tax?
No. ESIC applies only to employees earning up to about ₹21,000 a month, and professional tax depends on your state (up to ₹2,500 a year). If either applies to you, your take-home pay will be slightly lower than shown.
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Disclaimer: This calculator gives an estimate for general information only. It is not professional tax, legal or financial advice, and your actual liability may differ. Please consult a qualified professional before acting on these figures.