Enter your CTC and get a complete salary breakup - Basic, HRA, PF, Professional Tax, TDS and monthly in-hand pay.
Cost To Company includes your gross pay + employer PF (12%) + gratuity (4.81%) + any other employer contributions. Take-home is always lower than CTC.
Both you and employer contribute 12% of Basic toward PF (capped at ₹15,000 basic for mandatory PF). Employee PF is deducted from your take-home.
After Basic, HRA, LTA and other fixed components - the remaining CTC is typically paid as "Special Allowance" which is fully taxable.
A state-level tax deducted monthly, ranging ₹0–₹2,500/year depending on state. Delhi, UP, Rajasthan levy no professional tax.
Understanding the difference between Cost to Company (CTC) and actual in-hand salary is essential for every Indian employee. CTC includes components that are never directly received - employer PF contribution, gratuity, and insurance premiums. The gap between CTC and take-home can range from 20% to 40% depending on the salary band, making this calculator indispensable for job offer comparisons and financial planning.
Employees' Provident Fund (EPF) was introduced through the EPF Act 1952. Both employer and employee contribute 12% of basic salary each month. Professional Tax, levied by state governments, ranges from Rs 200 to Rs 2,500 per year depending on the state - Maharashtra, Karnataka, and West Bengal are notable examples. Income tax is computed under either the old or new regime introduced in Budget 2020, with further changes in Budget 2023 making the new regime the default for salaried individuals.
House Rent Allowance (HRA) is typically 40% of basic for non-metro cities and 50% for metros like Mumbai, Delhi, Kolkata, and Chennai as per Section 10(13A) of the Income Tax Act. CBSE-affiliated school teachers, central government employees on 7th Pay Commission, and private sector workers all use similar salary structures. This calculator helps decode complex payslips instantly, supporting better decisions on tax-saving investments under Section 80C.