₹1,45,839 a month
If PF is on your full wages of ₹95,833 (the joint option), take-home is ₹14,790 less, and ₹17,000 a month more goes into PF (yours and your employer’s), out of the same CTC.
23 LPA in hand salary
On a ₹23 lakh CTC, take-home is ₹1,60,629 a month (new regime, Tax Year 2026-27) after ₹3,000 PF, ₹200 professional tax (assumed) and ₹20,231 income tax.
- Tax Year 2026-27 · verified 26 September 2026
- Checked against real payslips
- By the Accurio.in team
Take-home a month · new regime · Tax Year 2026-27
₹1,60,629
₹19,27,546 a year after PF and taxes
- Basic
- ₹95,833
- HRA
- ₹47,917
- Special allowance
- ₹40,310
- Gross pay
- ₹1,84,060
- PF, 12% of ₹25,000
- −₹3,000
- Professional tax
- −₹200
- Income tax (TDS)
- −₹20,231
Take-home₹1,60,629
Professional tax: ₹200 a month assumed. Choose your state for the exact amount.
Your employer also pays ₹7,607 a month: PF ₹3,000, gratuity ₹4,607. With your gross pay that makes the CTC, ₹1,91,667 a month.
₹1,64,039 a month
Some employers pay gratuity on top of the CTC instead of setting aside 15 days’ wages a year inside it. Then take-home is ₹3,410 more.
₹18,647 more tax
a month under the old regime, with the standard deduction, your PF under s.123 and professional tax, but no rent or other s.123 payments.
Your salary, a month and a year
A usual month. Income tax a month is the year’s tax ÷ 12, as employers spread it.
| Item | A month | A year |
|---|---|---|
| Basic | ₹95,833 | ₹11,49,996 |
| HRA | ₹47,917 | ₹5,75,004 |
| Special allowance | ₹40,310 | ₹4,83,716 |
| Gross pay | ₹1,84,060 | ₹22,08,716 |
| PF (yours) | −₹3,000 | −₹36,000 |
| Professional tax | −₹200 | −₹2,400 |
| Income tax | −₹20,231 | −₹2,42,770 |
| Take-home | ₹1,60,629 | ₹19,27,546 |
| PF (employer’s) | ₹3,000 | ₹36,000 |
| Gratuity provision | ₹4,607 | ₹55,284 |
| CTC | ₹1,91,667 | ₹23,00,000 |
Why sites show different figures for 23 LPA
Take-home a month at 23 LPA for each choice, the rest at this page’s defaults. Most of the gap between calculators comes from these two choices, which many don’t state.
| PF on | Gratuity | A month |
|---|---|---|
| Up to ₹25,000 This page’s default | In CTC | ₹1,60,629 |
| Up to ₹25,000 | Not in CTC | ₹1,64,039 |
| Full wages | In CTC | ₹1,45,839 |
| Full wages | Not in CTC | ₹1,49,249 |
How this is calculated
From CTC to take-home, step by step
- The CTC holds your gross pay and the employer’s costs: PF, ESI where it applies, and where you choose, a gratuity provision and NPS. Basic is your share of the CTC, HRA your share of basic, and a special allowance takes the rest.
- Wages for PF, ESI and gratuity are basic pay plus any amount by which the other pay is more than 50% of all pay (Code on Social Security, s.2(88), as the Labour Ministry’s FAQ works it in its example, Q7).
- PF: 12% of wages up to ₹25,000 from you, and 12% from your employer, of which 8.33% goes to the pension scheme (EPS). With the joint option, PF is on the full wages, but the EPS part stays on wages up to ₹25,000. Each rounded to the rupee.
- Gratuity provision: 15 days’ wages a year (15/26 of a month’s wages), when it is inside the CTC.
- ESI while your wages are at most ₹21,000 a month, at an employer with 10 people or more in an area where ESI has been notified: 0.75% of the wages from you and 3.25% from your employer, each rounded up to the rupee (Social Security (Central) Rules, 2026, rule 19). Since 21 November 2025 it is on the Code’s wages, not on gross pay.
- Professional tax by your state’s schedule on the gross pay of the month, at most ₹2,500 a year (Constitution, art. 276(2)).
- Income tax for Tax Year 2026-27, the financial year from 1 April 2026 to 31 March 2027, on the gross pay. New regime: the ₹75,000 standard deduction, the s.156 rebate and the employer’s NPS deduction (s.124, up to 14% of basic). Old regime: the ₹50,000 standard deduction, the HRA exemption, your PF and other s.123 payments, professional tax, and the employer’s NPS up to 10% of basic. The employer’s PF and NPS above ₹7.5 lakh a year are taxed as salary. A month’s tax is the year’s ÷ 12.
- Take-home = gross pay − your PF − your ESI − professional tax − income tax.
- Statutory bonus is not included. It is paid once a year, and the wage limits that decide it have been notified so far only for central-sphere employers, such as banks and central public sector undertakings; for others it is the State’s notification, and none was found yet.
A worked example in rupees, take-home across CTCs and professional tax by state: CTC to in-hand salary, line by line.
Professional tax by state
- Maharashtra: ₹200 a month from ₹10,001 of pay a month (₹300 in February); less or nothing below that. Women have their own, higher threshold (schedule).
- Karnataka: ₹200 a month from ₹25,000 of pay a month (₹300 in February); less or nothing below that (schedule).
- Telangana: ₹200 a month from ₹20,001 of pay a month; less or nothing below that (schedule).
- Andhra Pradesh: ₹200 a month from ₹20,001 of pay a month; less or nothing below that (schedule).
- Gujarat: ₹200 a month from ₹12,001 of pay a month; less or nothing below that (schedule).
- Other states: not covered yet. Choose “No professional tax” only if your state has none; if it isn’t chosen, ₹200 a month is assumed.
Assumptions
- A fixed CTC, the same every month: no bonus, variable pay, ESOPs or reimbursements, which the Labour Ministry’s FAQ also keeps out of wages.
- Gross pay is basic, HRA and one special allowance. Payslips often split that allowance into heads such as conveyance or LTA: the total is the same, but in the old regime some heads can be exempt, which this page doesn’t count.
- The CTC holds no EDLI, PF admin charges, insurance or meal cards. You are a member of the pension scheme (EPS).
- In the 50% test, the employer’s PF and ESI count with the allowances, as the Labour Ministry’s FAQ counts every component other than basic and DA; the Code’s list does not name ESI, so that part is our reading. The employer’s ESI is not added to your taxable salary; where ESI applies, no income tax is due in either regime.
- Your employer is covered by ESI when your wages fall within its limit: an establishment with 10 people or more, in an area where the Central Government has notified that ESI benefits are provided. How long ESI coverage carries on after wages pass the limit is not modelled.
- Income tax for a resident below 60 with no other income, the same salary all year.
- The year’s figures take PF on wages up to ₹25,000 for all twelve months. That ceiling applies from 17 September 2026 and was lower before it, so for wages above the earlier ceiling this year’s actual PF is a little lower than shown, and in the old regime so is the s.123 deduction for it.
- Professional tax for a usual month; the year counts the February amount.
From the Code on Social Security, 2020 and the Labour Ministry’s FAQ on the Labour Codes, the EPF Scheme, 2026 and the ₹25,000 wage ceiling, the Income-tax Act, 2025, the ESIC circular on wages and the Social Security (Central) Rules, 2026, and each state’s schedule above. Checked against two real payslips, to the rupee. Rules checked 26 September 2026.
Why do calculators show different take-home for the same CTC?
Because they assume different things and rarely say so. The biggest two: whether PF is on wages up to ₹25,000 (the law’s default) or on the full wages, and whether the CTC holds a gratuity provision. The share of basic matters too. This page states every assumption and shows the take-home under each, so you can match your offer letter.
What is the 50% wage rule?
Since the Labour Codes took effect on 21 November 2025, any pay other than basic and DA above 50% of all pay counts as wages, so PF, ESI and gratuity are worked out on more than the basic. With basic at 50% of the CTC or more, nothing is added. The calculator shows when the rule adds to your wages.
Is ESI worked out on my gross pay?
Not since 21 November 2025. Under the Code on Social Security, ESI uses the Code’s wages: basic pay and DA, plus the allowances above 50% of your pay. ESIC’s own circular says many employees who were left out on gross pay are likely to be covered now. You pay 0.75% and your employer 3.25% of those wages while they are at most ₹21,000 a month.
Is the employer’s PF above 12% of basic taxed?
Not on its own since 1 April 2026: the Finance Act, 2026 removed that rule for a recognised provident fund, which includes EPF (Income-tax Act, 2025, Schedule XI Part A para 6). What still counts is the ₹7.5 lakh a year limit on the employer’s PF, NPS and superannuation contributions together; above it, the excess is taxed as salary.
Which regime applies if I don’t choose?
The new regime (s.202) is the default. To be taxed under the old regime you opt out of it under s.202(4). The calculator shows the other regime’s tax under the result.
What changed (latest: 17 September 2026)
The rules this page uses, by the date each took effect, newest first. Each was last checked against its official source between 26 September 2026 and 5 October 2026.
-
- EPF wage ceiling: ₹15,000 per month → ₹25,000 per month
-
- Method for September 2026 (month containing the ceiling change)
-
- ESI contribution rates
-
25 changes
- Employer PF + NPS + superannuation contributions: amount above which the excess is a taxable perquisite
- Employer's contribution to a recognised provident fund above 12% of salary: no longer taxed by itself (Schedule XI Part A para 6, from TY 2026-27)
- New-regime slab rates on taxable income
- Old-regime slab rates: individuals below 60, and non-residents of any age
- Old-regime slab rates: resident individuals aged 60 to 79
- Old-regime slab rates: resident individuals aged 80 or more
- Standard deduction on salary
- Rebate, new regime
- Rebate, old regime
- Surcharge rates
- Health and education cess
- Rounding of total income and of tax payable/refund
- Deduction for life insurance premia, provident fund and the other Schedule XV payments (s.123, formerly 80C)
- Deduction for the individual's own NPS contribution (s.124(3), formerly 80CCD(1B))
- Deduction for health insurance premia (s.126, formerly 80D)
- Deduction for interest on bank, co-operative bank and post office deposits (s.153, formerly 80TTA and 80TTB)
- Interest on a home loan for a self-occupied house (s.22(1)(b)–(c), capped by s.22(2); formerly s.24(b))
- Employer NPS contribution deduction (s.124, formerly 80CCD(2))
- Income-tax Act 2025 in force; "Tax Year" replaces previous year / assessment year
- HRA exemption: the part of a house rent allowance not taxed (Schedule III Sl. No. 11; Income-tax Rules 2026 rule 279)
- Cities with 50% HRA exemption limit: Delhi, Mumbai, Kolkata, Chennai → Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad (all others 40%); old regime only
- Tax-exempt gratuity paid under the Code (s.19(1) Table Sl. No. 5, as we read it)
- Tax-exempt gratuity, "any other gratuity" (s.19(1) Table Sl. No. 6): the limit based on salary
- Gratuity paid to heirs on an employee's death (Schedule III Sl. No. 38)
- Government employees' gratuity (s.19(1) Table Sl. No. 3)
-
14 changes
- "Wages" 50% add-back
- Four Labour Codes in force
- ESI: the wages that decide coverage and contributions
- ESI wage ceiling
- ESI: establishments covered
- Statutory bonus: wage ceiling for eligibility
- Statutory bonus: wage ceiling for the calculation
- Statutory bonus: minimum and maximum
- Statutory bonus: establishments covered
- Gratuity payable
- Gratuity eligibility: continuous service
- Fixed-term employee gratuity eligibility
- Who the Code's gratuity chapter covers
- Continuous service for gratuity (Code on Social Security, 2020, s.54)
-
- Professional tax, Karnataka (salary or wage earners)
- EPF interest rate
-
- Professional tax, Maharashtra (salary and wage earners)
-
- Professional tax, Gujarat (salary and wage earners)
Mistakes we have fixed on any page are listed on Corrections.
What to check next
How is the income tax worked out?
Income tax calculator
Slab by slab, both regimes, for any salary.
Where does the PF go?
EPF / PF calculator
Your PF balance year by year, with the employer’s share.
Paying rent?
HRA exemption
The three limits of the old regime’s HRA rule.
Leaving after five years or more?
Gratuity calculator
What the Labour Code pays, and the tax-free part.
In-hand salary on nearby CTCs
A month, Tax Year 2026-27, with basic 50% of the CTC, HRA 50% of basic, PF on wages up to ₹25,000, gratuity inside the CTC, the new regime and ₹200 a month of professional tax.