CTC to In-Hand Salary Calculator
Break down your CTC into monthly in-hand salary
About CTC Breakup Calculator
The CTC Breakup Calculator breaks down your Cost to Company (CTC) into its components — basic salary, HRA, special allowance, PF, gratuity, and deductions — to show your actual in-hand salary. Many employees are confused between CTC, gross salary, and net salary because CTC includes employer contributions (PF, gratuity, insurance) that you never receive in hand. Our calculator provides a clear month-by-month and annual breakdown showing exactly what you take home.
Understanding your CTC breakup is essential when evaluating job offers or negotiating salary. A ₹15 lakh CTC might translate to only ₹10-11 lakh in-hand annually after accounting for employer PF contribution (12% of basic), gratuity (4.81% of basic), professional tax, and income tax. Our calculator handles all standard salary structures including variable pay, performance bonuses, and retirement benefits, giving you complete transparency for FY 2026-27.
Key Features
- CTC to in-hand salary conversion
- Complete component breakup (Basic, HRA, PF, Gratuity)
- Monthly and annual salary computation
- Income tax deduction under both regimes
- Variable pay and bonus structure handling
Frequently Asked Questions
What is the difference between CTC and in-hand salary?
CTC (Cost to Company) includes all employer costs — basic salary, HRA, allowances, employer PF contribution (12% of basic), gratuity, medical insurance, and variable pay. In-hand salary is what you actually receive after deducting employee PF, professional tax, TDS, and other deductions. Typically, in-hand salary is 70-75% of CTC due to employer contributions and tax deductions.
How is gratuity calculated from CTC?
Gratuity is calculated as 4.81% of basic salary per month (15 days of basic per year of service / 12 months). It is part of CTC but not paid monthly — it accumulates and is payable on leaving the company after 5 years of service. For a basic salary of ₹50,000, monthly gratuity would be ₹2,405 (4.81% of ₹50,000), which is included in CTC but deducted from gross to arrive at in-hand salary.
Is employer PF contribution part of CTC?
Yes, employer PF contribution (12% of basic salary) is included in CTC. Of this, 3.67% goes to EPF and 8.33% goes to EPS (Employee Pension Scheme). While this is a cost to the company, it is not directly received by the employee monthly. However, the EPF portion accumulates with interest and the EPS provides pension after retirement, making it a valuable retirement benefit.
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