How the Salary Calculator Works
Enter your annual CTC, indicate whether it includes a variable bonus, and select your preferred tax regime. This calculator applies common simplifying assumptions used across the industry to estimate your in-hand salary.
Basic salary is assumed to be roughly 50% of your fixed CTC — a widely used industry approximation. Your actual basic salary depends on your employer's specific salary structure.
The calculator deducts employer PF contribution (part of CTC but not part of your gross salary), employee PF contribution, professional tax, and estimated income tax to arrive at your take-home salary.
Formula Used
Take-home salary is estimated using this sequence of deductions:
Take-Home = Gross Salary − Employee PF − Professional Tax − Income Tax- Gross SalaryFixed CTC minus employer PF contribution, plus bonus if applicable
- Employee PF12% of Basic Salary, deducted from gross pay
- Professional TaxA flat state-level annual deduction (commonly ₹2,400)
Example Calculation
Suppose your annual CTC is ₹12,00,000 with no separate bonus, under the new tax regime.
- Annual CTC₹12,00,000
- RegimeNew Regime
- Monthly Take-Home ≈ ₹87,800
Important Assumptions
- Basic salary is assumed to be 50% of fixed CTC — actual salary structures vary significantly between employers.
- Employer and employee PF contributions are both assumed at 12% of basic salary, the statutory default under EPF rules.
- Professional tax is assumed at a flat ₹2,400 per year, though the actual amount varies by state and is capped at ₹2,500 annually under Indian law.
- Other common salary components, such as HRA, LTA, meal allowances or gratuity, aren't separately modelled in this calculator.
- PF is calculated as 12% of your full basic salary with no upper limit applied. Some employers instead cap PF contributions at 12% of a ₹15,000/month basic wage, regardless of your actual basic — if yours does, your real PF deduction (and take-home) may be higher than this estimate.
- Income tax is estimated using the same engine as the Income Tax Calculator, applying standard deduction but no additional deductions.