India salary calculator FY 2026-27: CTC to in hand

Enter a CTC to see the in hand salary a month, what the employer pays into EPF and the income tax under each regime.

The CTC on the offer letter or salary structure: salary plus everything the employer pays on top, such as EPF.

CTC also holds what the employer pays on top of salary: EPF, EPS, EDLI, EPF admin, employer NPS and gratuity.

Both regimes are worked out and shown side by side; this picks the one the breakdown follows. The new regime is section 202 (115BAC).

Changes the old regime slabs for residents only. The new regime has one table for every age.

Used for EPF, HRA, employer NPS and gratuity.

More options

Employee 12% of basic, and the employer's EPF, EPS, EDLI and admin charges.

Off: EPF on basic up to 15,000 a month, the EPFO wage ceiling.

Old regime: employer NPS is deductible under section 124 (80CCD(2)) up to 14% of basic for government employers and 10% for others.

Gratuity is 15 days of wages for each year of service. How a month turns into 15 days is not stated on the official pages checked, so pick the divisor your employer uses.

PPF, ELSS, life insurance and the like. Your EPF counts too; the total is capped.

House rent allowance, part of the salary above. Exempt under Schedule III and Rule 279 (10(13A)) in the old regime only.

The state tax on your payslip. Deductible under section 19 (16(iii)) in the old regime only.

Show pay per

In hand salary

₹96,250

You keep 98.16%.

Income tax a month
₹0
Marginal rate
0.00%
In hand salary a year
₹11,55,000
Income tax a year
₹0
Employer cost a year
₹12,00,000

Side by side

  • New regime

    Highest take home

    ₹96,250 a month

    ₹11,55,000 a year

    Income tax ₹0 a year

    ₹12,480 a month more than Old regime

  • Old regime

    ₹83,770 a month

    ₹10,05,240 a year

    Income tax ₹1,49,760 a year

    ₹12,480 a month less than New regime

Breakdown
ItemA monthA year
Gross pay₹98,050₹11,76,600
Income tax₹4,180₹50,160
Section 156 rebate (87A)-₹4,180-₹50,160
EPF₹1,800₹21,600
Total deductions₹1,800₹21,600
In hand salary₹96,250₹11,55,000
What the employer pays on top
ItemA monthA year
EPF (employer)₹550₹6,600
EPS pension (employer)₹1,250₹15,000
EDLI insurance (employer)₹75₹900
EPF admin charges (employer)₹75₹900
How we calculate

Marginal rate 0.00%, effective rate 1.84%.

Read the method in full

New and old regime side by side
ItemNew regimeOld regime
Gross salary₹11,76,600₹11,76,600
Standard deduction₹75,000₹50,000
Section 123 (80C) including EPF₹0₹21,600
Taxable income₹11,01,600₹11,05,000
Tax on slabs₹50,160₹1,44,000
Section 156 rebate (87A)₹50,160₹0
Cess₹0₹5,760
Total tax₹0₹1,49,760
Take home pay₹11,55,000₹10,05,240

A year. The new regime allows only the standard deduction and employer NPS for salary.

What this does not include

  • Covers salary from one employer for an individual resident in India. Business income, house rent received, capital gains, interest and other income are not included, and the rebate does not cover tax on special rate income such as capital gains.
  • The old regime age bands for 60 to 79 and 80 and over apply to residents only, and this calculator assumes the person is resident.
  • Professional tax is a state tax with its own slabs in each state, so it is not worked out here: enter the yearly amount from a payslip.
  • EPF uses the 12% rate EPFO lists. The Labour Ministry handbook for the labour codes states 10% as the employer rate, and some smaller employers pay 10%, so a payslip may differ.
  • Members who joined EPF on or after 1 September 2014 with basic pay over the wage ceiling have no EPS: the employer share then all goes to EPF. The employer total is the same, only the split differs.
  • Gratuity is shown only as a yearly accrual in the employer cost, not as pay received now, and its tax exemption is not included.
  • Employer contributions to EPF, NPS and superannuation above 7,50,000 a year are taxable as a perquisite; that is not included.
  • Medical spending for an uninsured senior, other Chapter VIII deductions, rent paid without HRA and the 30,000 interest limit for older or unfinished home loans are not included.
  • EPS stops at 58. Age is taken in bands, so from the 60 to 79 band the employer share all goes to EPF, and someone aged 58 or 59 is still shown with EPS.
  • Old section numbers in brackets are the 1961 Act names people still search with; the 2025 Act numbers are the official ones.
  • Tax is worked out for the full year at a steady salary. Monthly TDS may spread it differently, so a payslip can differ a little.

Your data stays in your browser. Nothing is uploaded.

For information only, not financial, tax or legal advice.

Last updated . Method checked . Rates checked 2 November 2026. Methodology

A CTC in an offer letter is not the amount that reaches the bank. It includes the employer's share of EPF and the EPS pension fund, EDLI insurance and EPF admin charges, and sometimes employer NPS or a gratuity accrual. This calculator starts from the yearly CTC, takes those employer parts off to find the gross salary, then deducts employee EPF and income tax for tax year 2026-27 to give the in hand salary a month. It works out the new and the old regime together, so the cards show the in hand pay under each. A CTC of ₹12,00,000 with basic pay at 40% gives ₹96,250 a month in the new regime. Figures use lakh and crore grouping, and the working stays on your device.

How to use the India Salary Calculator

  1. Type the CTC for the year from the offer letter, and leave The pay entered is on CTC.
  2. Set basic pay plus DA as a percent of the CTC, as the salary structure shows it. Tip: EPF stops rising once basic passes ₹15,000 a month, unless EPF on full basic is ticked under More options.
  3. Open More options for employer NPS, the gratuity accrual, professional tax and the old regime deductions.
  4. Read the in hand salary a month at the top, then the employer lines that sit between the CTC and the gross salary.
  5. Switch Tax regime to Old regime to follow that regime through the breakdown, while the cards keep both in view.
  6. Copy the figures, save the breakdown as a CSV file, or share a link that keeps what you typed.

Worked example

An offer letter gives a CTC of ₹12,00,000 for tax year 2026-27, with basic pay plus DA at 40% of it. The employee is under 60, an EPF member on the wage ceiling, and stays in the new regime. All amounts are Indian rupees (INR).

InputValue
Cost to company (CTC) for the year₹12,00,000
Basic pay plus DA40% of CTC
EPFMember, on basic up to ₹15,000 a month
Tax regimeNew regime
 
Basic pay = 40% x 12,00,000 / 12 = 40,000 a month, so EPF wages stop at the 15,000 ceiling
Employee EPF = 12% x 15,000 = 1,800 a month, or 21,600 a year
Employer: EPS 8.33% x 15,000 = 1,250, EPF 1,800 - 1,250 = 550, EDLI 75 and admin 75, so 1,950 a month or 23,400 a year
Gross salary = 12,00,000 - 23,400 = 11,76,600
New regime taxable income = 11,76,600 - 75,000 = 11,01,600, slab tax 50,160, all of it cleared by the section 156 rebate
In hand salary = 11,76,600 - 21,600 = 11,55,000 a year, or 96,250 a month
In hand salary a month
₹96,250
In hand salary a year
₹11,55,000
Gross salary a year
₹11,76,600
Employee EPF a year
₹21,600
Income tax a year, new regime
₹0
Income tax a year on the same CTC, old regime
₹1,49,760
Employer cost a year, equal to the CTC
₹12,00,000

EPF rates and the wage ceiling from EPFO, tax figures from the Income-tax Act 2025, all in the rates file checked on 2 November 2026.

How it is calculated

Basic pay = basic percent x CTC
Employer lines = EPF + EPS + EDLI + EPF admin + employer NPS + gratuity accrual
Gross salary = CTC - employer lines
In hand salary = gross salary - employee EPF - income tax - professional tax

CTC, cost to company, is the yearly sum an employer budgets for a job. Part of it never reaches the employee's bank account, because it is paid into funds and insurance on the employee's behalf. The calculator starts from the CTC and takes those parts off in the order a salary structure lists them.

EPFO lists 12% from the employee and the same from the employer, on basic pay plus DA up to ₹15,000 a month. Of the employer's share, 8.33% goes to the EPS pension fund and the rest, 3.67% at the ceiling, to the EPF account. EDLI insurance adds 0.5% and admin charges another 0.5%. EPS stops at 58, so from the 60 to 79 band the whole employer share shows as EPF.

Above the ceiling EPF is voluntary on the extra pay. Ticking EPF on full basic applies the rate to the whole of basic on both sides, which raises the employer lines and lowers the gross salary that comes out of the same CTC. Employer NPS works the same way: a percent of basic paid in by the employer and counted in the CTC, then deducted from taxable income up to 14% of basic in the new regime and 10% in the old, or 14% for a government employer.

Gratuity builds up at 15 days of wages for each year of service, with a payment ceiling of ₹20,00,000. It is paid on leaving, so the calculator shows it only as an accrual in the employer cost and only when a divisor is picked.

Income tax then runs on the gross salary under both regimes. In the worked example the ₹12,00,000 CTC gives a gross salary of ₹11,76,600, and new regime taxable income of ₹11,01,600 sits below the rebate line, so no tax is due and ₹96,250 reaches the bank each month. The old regime card, with only EPF counted under section 123 (80C), shows ₹1,49,760 of tax on the same pay.

The month figure is the year divided by 12, as payroll spreads a steady salary. A bonus, arrears or a rise part way through the year change the TDS of the months they fall in.

Frequently asked questions

What is the in hand salary on a CTC of 12 lakh?

With basic pay at 40% and EPF on the ₹15,000 wage ceiling, the employer's EPF, EPS, EDLI and admin charges take ₹23,400 out of the CTC, leaving a gross salary of ₹11,76,600. Employee EPF is ₹21,600 a year. In the new regime the rebate clears the tax on the rest, so the in hand salary is ₹96,250 a month, or ₹11,55,000 a year.

Why is the gross salary lower than the CTC?

CTC counts everything the employer spends on the job, including payments that never reach the bank account: the employer share of EPF and the pension fund, EDLI insurance, EPF admin charges, any employer NPS and, where the employer counts it, a gratuity accrual. The calculator takes those off first, and what is left is the gross salary that tax and employee EPF come out of.

How is EPF worked out each month?

Employee EPF is 12% of basic pay plus DA, on wages up to ₹15,000 a month unless EPF on full basic is ticked. The employer matches it, with 8.33% of capped wages going to the EPS pension fund and the rest to EPF, and pays 0.5% for EDLI and 0.5% in admin charges on top. Each amount is rounded to the nearest rupee a month, as EPFO rounds it.

Is gratuity part of the in hand salary?

No. Gratuity is paid when someone leaves after five years of continuous service, or one year on a fixed term contract, at 15 days of wages for each year. Some employers put an accrual for it inside the CTC. Pick a divisor under More options to show that accrual as an employer cost. The official pages checked do not say which divisor applies, so it follows the employer.

Does professional tax change the in hand salary?

Yes, in both regimes, because the employer deducts it from pay. It lowers taxable income only in the old regime, where section 19 (16(iii)) allows it. Each state sets its own amount and no state table could be confirmed on an official page, so the calculator takes the yearly figure from your payslip instead of looking it up.

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