CTC to In-Hand Calculator
Annual CTC + bonus split → component breakdown (basic, HRA, special allowance), statutory deductions and monthly take-home. New regime FY 2026-27, PF on the ₹25,000 wage ceiling.
- Basic (50% of fixed)
- ₹ 6,75,000
- HRA (50% of basic)
- ₹ 3,37,500
- Special allowance
- ₹ 3,01,500
- Variable / bonus
- ₹ 1,50,000
- Employer PF
- ₹ 36,000
- Gratuity provision
- ₹ 32,467
- Gross salary (annual)
- ₹ 14,64,000
- Employee PF (12% of basic, capped)
- − ₹ 36,000
- Professional tax (annual)
- − ₹ 2,400
- Income tax (incl. 4% cess)
- − ₹ 91,884
- In-hand annual
- ₹ 13,33,716
- In-hand monthly
- ₹ 1,11,143
Indicative breakdown using a typical structure. Actual structures vary by employer; PT rate shown is Karnataka. PF uses the ₹25,000 wage ceiling in force from 17 September 2026.
A worked example, end to end.
Software engineer in Bengaluru. CTC ₹24,00,000 per year, of which ₹3,00,000 (12.5%) is bonus. PF capped at the wage ceiling. New regime, FY 2026-27.
- Fixed CTC. ₹24L − ₹3L = ₹21L annually.
- Basic (50% of fixed). ₹10,50,000. Monthly: ₹87,500.
- HRA (50% of basic). ₹5,25,000. Monthly: ₹43,750.
- Employer PF (12% of ₹25,000 ceiling). ₹3,000 × 12 = ₹36,000. Inside CTC.
- Special allowance. ₹21L − ₹10.5L − ₹5.25L − ₹36,000 = ₹4,89,000. Monthly: ₹40,750.
- Gross salary. ₹10,50,000 + ₹5,25,000 + ₹4,89,000 + ₹3,00,000 bonus = ₹23,64,000.
- Employee PF. ₹3,000/month, ₹36,000/year.
- PT (Karnataka). ₹200/month, ₹2,400/year.
- Tax. ₹23,64,000 − ₹75,000 standard deduction = ₹22,89,000 taxable. Slab tax ₹2,72,250 plus 4% cess = ₹2,83,140.
- Annual in-hand. ₹23,64,000 − ₹36,000 − ₹2,400 − ₹2,83,140 = ₹20,42,460, about ₹1,70,205 a month with the bonus spread across the year.
- Against the old ₹15,000 ceiling. PF was ₹1,800 a month each side. The extra ₹1,200 of employer PF comes out of special allowance, and the extra ₹1,200 of employee PF comes out of pay, partly offset by lower tax. In-hand falls by ₹25,056 a year, about ₹2,088 a month, while the PF balance grows by ₹28,800 a year.
Offer letter CTC breakdown template (Excel).
Pre-built CTC decomposer: paste the annual CTC and bonus, see basic, HRA, special, retirals, statutory deductions and the monthly in-hand. Side-by-side new and old regime computation. Useful for evaluating multiple offers.
How CTC translates to in-hand.
CTC (Cost to Company) is the total annual outlay your employer commits to. It is split into a fixed component (paid every month) and a variable / bonus component (paid quarterly, half-yearly or annually based on performance).
Typical structure
- Basic salary, usually 40-50% of CTC (excluding bonus). Forms the base for PF, gratuity, HRA exemption.
- HRA, typically 50% of basic (40% in non-metro). Tax-exempt under Section 10(13A) on the lowest of: HRA received, rent paid minus 10% of basic, or 50%/40% of basic.
- Special allowance, fully taxable, fills the gap to the fixed amount.
- Variable / bonus, paid based on performance.
- Employer PF, 12% of basic (capped at ₹3,000/month if basic is above the ₹25,000 wage ceiling, ₹1,800 before 17 September 2026). Part of CTC, not paid to you.
- Gratuity provision, 4.81% of basic (1/26 × 15 × annual basic / 12). Part of CTC, paid only on exit after 5 years.
Monthly deductions from gross
- Employee PF, 12% of basic (capped same as above).
- Professional Tax, varies by state. ₹200/month for most months in Karnataka, Maharashtra, Tamil Nadu and several others (₹2,400/year here).
- Income Tax (TDS), per slabs, computed on gross salary less the ₹75,000 standard deduction and distributed monthly. Under the new regime, employee PF and professional tax do not reduce taxable income.
CTC = total cost to company (includes employer PF + gratuity + group medical). Gross = sum of components actually paid (basic + HRA + special + bonus). In-hand = Gross − employee PF − PT − TDS. The gap between CTC and in-hand is usually 30-40%.
Common questions.
Why is my in-hand much lower than my CTC?
CTC includes the employer PF contribution, gratuity provision and any group medical insurance, all of which the company pays on your behalf but you do not see in your bank account. Add monthly TDS (income tax), employee PF and ESI contributions where applicable, and PT, and the in-hand can be 30-40% lower than the CTC. The gap is normal; it just looks bigger when CTC is presented as one big number.
How is HRA exemption calculated?
Section 10(13A) exempts the lowest of: (a) actual HRA received, (b) 50% of basic for metros / 40% non-metros, (c) actual rent paid minus 10% of basic. To claim, you need rent receipts (and PAN of landlord if rent > ₹1L/year). Under the new regime, HRA exemption is not allowed.
What about the variable / bonus component?
Bonus is fully taxable when paid. Tax is deducted at the time of payout. Many employers pre-deduct estimated tax monthly even before bonus is paid, then true-up at year-end based on actual performance ratings.
What is the difference between gross and net?
Gross = basic + HRA + special + bonus + other allowances paid to you. Net (in-hand) = gross minus employee PF, professional tax and TDS. Employer PF and gratuity are part of CTC but not part of gross.
Why does PF cap at ₹3,000/month?
Mandatory PF is 12% of basic up to the wage ceiling. The ceiling rose from ₹15,000 to ₹25,000 a month on 17 September 2026, so the cap went from ₹1,800 to ₹3,000 a month (₹36,000 a year). Many employers deduct 12% of full basic voluntarily; some cap at the statutory limit. The calculator caps by default and has a toggle for full basic; check your offer letter for which approach your employer follows. Employers reconcile these amounts every month through PF ECR filing.
Does this work for senior management with high-CTC structures?
The structure is broadly correct but specific items (RSU/ESOP perquisites, LTA exemption, NPS contribution, leased car, voluntary PF, retirals, deferred bonus) need manual modelling. The calculator is an indicative reference for typical structures; for senior packages, work with HR and your tax advisor. Employers tracking the recurring deduction and remittance dates can follow the payroll statutory calendar.
More payroll and tax tools.
Run payroll compliance on OneFinOps.
PF (ECR), ESI, Professional Tax (multi-state), TDS auto-deduction, Form 16/16A in bulk, salary disbursement and bank reconciliation.