Take Home Salary Calculator

CTC vs Take-Home: The real difference

A ₹12 LPA CTC sounds impressive, but the monthly in-hand figure can be significantly lower. For a ₹12L CTC with 40% basic, after PF, professional tax, and income tax, the take-home is about ₹93,800/month in this calculator with its default setting (employee and employer PF each capped at the ₹25,000/month wage ceiling, i.e. ₹3,000/month). With PF on the full basic (12% of ₹4.8 lakh) it is about ₹90,200/month, and under the older ₹15,000 ceiling (₹1,800/month PF) it was about ₹96,200. Income tax is nil at this level because of the Section 87A rebate.

Standard salary structure in India

• Basic — 40–50% of CTC; base for PF and gratuity
• HRA — 40–50% of Basic; partially or fully tax-exempt if you pay rent
• Special Allowance — balance amount, fully taxable
• Employer PF — 12% of Basic (capped at ₹3,000/mo by default, or on full basic if you choose); part of CTC, not salary

Negotiation tips

When comparing job offers, always compare take-home, not CTC. Ask for a detailed salary breakup — the ratio of basic to special allowance significantly affects your actual take-home. If your employer calculates PF on the full basic, a lower basic with more special allowance means a lower PF deduction and higher in-hand salary (switch the calculator to "Full basic" to see it). If PF is capped at the ₹25,000/month wage ceiling, the basic percentage changes take-home only while basic is below about ₹3 lakh a year, because PF is already at its ₹3,000/month cap.

New Tax Regime vs Old Tax Regime — which gives more take-home

The New Tax Regime (the default since FY 2023-24, assessment year 2024-25) has lower tax rates but fewer deductions — HRA exemption, 80C, 80D, and LTA are not available. The Old Regime only gives lower tax and higher take-home when your total deductions (HRA exemption, 80C, 80D, home loan interest and so on, beyond the ₹50,000 standard deduction) are large: roughly ₹5.4–8 lakh at CTC levels of ₹12–25 LPA, and about ₹8 lakh at ₹25 LPA and above. Below those levels the New Regime usually wins. This calculator uses the New Regime; if you are on the Old Regime, your actual take-home may be higher or lower depending on your specific deductions.

Understanding the Section 87A zero-tax benefit

Under the New Tax Regime for FY 2026-27 (unchanged from FY 2025-26; Section 156 of the Income-tax Act, 2025 now carries the rebate), the Section 87A tax rebate eliminates income tax entirely for taxable income up to ₹12 lakh (after the ₹75,000 standard deduction, this means gross salary up to ₹12.75 lakh). A salaried employee earning exactly ₹12 LPA CTC will pay zero income tax under the new regime — but will still have EPF and Professional Tax deductions. Just above the limit, marginal relief caps your tax at the income above ₹12 lakh (for example, ₹5,200 including cess at ₹12.05 lakh taxable income), so a raise never leaves you worse off. This is the most impactful change in recent tax history for middle-income salaried employees and dramatically improves take-home for the ₹8–14 LPA CTC band.

EPF contribution — employee vs employer

Employee EPF contribution is 12% of basic pay (plus DA) and is deducted from your gross salary, which reduces take-home but builds the retirement corpus. Contribution is mandatory on wages up to the EPF wage ceiling — ₹25,000 a month since 17 September 2026 (₹15,000 before), so up to ₹3,000/month — and paying 12% on your full basic is a voluntary option that needs the employer's agreement. Many employers still contribute on the full basic, which is why this calculator lets you choose between the two. Employer EPF contribution (3.67% to EPF + 8.33% to EPS) is part of the CTC but never appears in your salary account — it flows directly to EPFO. Employees whose wages are at or below the ceiling are mandatorily covered where the employer has 20 or more employees; a first-time member whose basic is above the ceiling when joining is not required to join and can only do so through a joint option with the employer, without EPS pension membership. Voluntary PF (VPF) allows contribution above 12% for better returns, but further reduces take-home in exchange for retirement savings.