Home›India Tools›Salary / CTC Calculator

💼 Salary / CTC Calculator

Salary Calculator India — Calculate take-home salary from CTC free. Full breakup with Basic, HRA, PF, gratuity, income tax. New and Old tax regime. Accurate 2024-25.

🔒 100% Free · No Login · Works in Browser

About Salary / CTC Calculator

Cost to Company (CTC) is the total annual expense a company incurs for an employee. However your actual take-home or in-hand salary is significantly less than CTC because it excludes employer PF contribution, gratuity provision, and income tax deductions. Understanding the difference helps you negotiate better and plan your finances accurately.

A typical Rs 12 lakh CTC in India breaks down roughly as: Rs 40,000 basic salary per month, Rs 20,000 HRA, Rs 20,000 special allowance, minus Rs 4,800 employee PF, minus tax deductions — resulting in approximately Rs 85,000 to Rs 90,000 in-hand per month. Our calculator shows the exact breakup based on your specific CTC.

Components of Indian Salary Structure

Every Indian salary has fixed components like basic salary (usually 40-50% of CTC) and variable components like performance bonuses. Employer contributions to PF (12% of basic) and gratuity (4.81% of basic) are part of CTC but not your take-home. Understanding each component helps with income tax planning and investment decisions.

📖 How to Use
1
Enter Values
Fill in the required numbers in the input fields
2
Calculate
Click Calculate to get instant results
3
Use Results
Copy or use the calculated values for your needs
❓ Frequently Asked Questions
Why is my take-home salary less than my CTC?+
CTC includes employer PF contribution (12% of basic), gratuity provision (4.81% of basic), and sometimes medical insurance premium. These are costs to the company but not direct cash in your hand. Income tax further reduces your take-home.
What percentage of CTC is basic salary typically?+
In most Indian companies basic salary is 40-50% of CTC. Government and PSU jobs often have 60-70% basic. Basic salary is important as PF, gratuity, and HRA are calculated as percentages of basic.
How is employer PF calculated?+
Employer contributes 12% of basic salary to your PF account. This is part of your CTC but you can only access it after leaving the job or at retirement. It is invested in EPFO and earns 8.15% interest (2023-24 rate).
What is the gratuity component in CTC?+
Gratuity is 4.81% of basic salary per year. It is paid to you as a lump sum when you leave after completing 5 years of service. Many companies include this in CTC even though you receive it only after 5 years.
Should I negotiate salary on CTC or in-hand basis?+
Always negotiate on CTC basis as it is the standard in India. Ask for the detailed breakup to understand your actual in-hand amount. Some companies inflate CTC by including benefits like meal vouchers, medical insurance, and variable pay.