CTC to In-Hand Salary Calculator — What You Actually Get Per Month
Securing a campus placement offer is a major milestone for college students, but the annual Cost to Company (CTC) figure mentioned in offer letters often differs significantly from your actual monthly bank deposit. CTC includes employer retirement benefits, variable performance pay, insurance premiums, and statutory tax deductions. Our CTC to In-Hand Salary Calculator breaks down Indian compensation structures to compute your exact monthly take-home salary. Enter your annual CTC package, variable pay percentage, and city tier to generate an itemized breakdown of Basic Salary, HRA, EPF, Gratuity, Special Allowance, and estimated TDS tax.
❓ Frequently Asked Questions (FAQs)
Why is in-hand salary much lower than annual CTC package?
Cost to Company (CTC) represents the total amount an employer spends on an employee per year. It includes non-cash components like employer Provident Fund (EPF), annual Gratuity, performance variable bonuses, and statutory income tax (TDS) deductions that do not reach your monthly paycheck directly.
How is basic salary and HRA calculated in Indian CTC structure?
In standard Indian payroll structures, Basic Salary is set to 40% of fixed annual CTC. House Rent Allowance (HRA) is calculated as 50% of Basic for metro cities (Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad) and 40% of Basic for non-metro cities.
What is the Provident Fund (PF) monthly deduction cap?
Standard EPF rules mandate a 12% deduction from Basic salary. However, EPFO allows capping statutory monthly PF at ₹1,800 per month (₹21,600 per year) for employees whose Basic salary exceeds ₹15,000/month.
What is the in-hand salary for 6 LPA CTC in India?
For a 6 LPA package with a 10% variable bonus and standard EPF deductions under the New Tax Regime, estimated monthly in-hand take-home salary comes to approximately ₹40,500 – ₹43,000 / month.