Stax

Take Home Salary Calculator

Calculate monthly in-hand salary from CTC with PF and tax breakdown.

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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 typically around ₹80,000–85,000/month.

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 (up to ₹1,800/mo); 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. A lower basic with more special allowance means lower PF deduction and higher in-hand salary.

Frequently asked questions

What is CTC?
CTC (Cost to Company) is the total annual expense an employer bears for an employee. It includes your gross salary plus employer contributions (PF, gratuity provision, insurance). Your actual take-home salary is significantly lower than CTC.
Why is my take-home lower than CTC?
CTC includes the employer's PF contribution (12% of Basic), which never reaches your bank account. From the remaining gross salary, your own PF contribution (12% of Basic), professional tax (≈₹2,400/year), and income tax are deducted to arrive at your take-home.
What is the typical Basic salary percentage?
Basic salary is usually 40–50% of CTC. A higher basic means higher PF deductions and higher gratuity, but also more HRA exemption (if you pay rent). Most companies set basic at 40% of CTC.
Does this account for all deductions?
This is an estimate based on a standard salary structure. Actual deductions depend on your employer's specific structure, ESIC contribution (if applicable), health insurance premium, NPS contribution, and other company-specific benefits.
How is income tax calculated here?
Tax is calculated under the New Tax Regime for FY 2025-26 with a ₹75,000 standard deduction for salaried employees. If your taxable income is ₹12 lakh or less, the Section 87A rebate makes your tax zero.

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