CTC to in-hand salary: how it is calculated
Take-home is your CTC less what your employer puts into PF, ESI and gratuity for you, then less your own PF and ESI, professional tax and income tax: a 12 LPA CTC leaves ₹91,396 a month, 91.4% of it.
- Updated 5 October 2026
- Tax Year 2026-27 · verified 26 September 2026
- How it’s worked out
- By the Accurio.in team
12 LPA, line by line
A month. Basic 50% of the CTC, HRA 50% of basic, PF on wages up to ₹25,000, gratuity in the CTC, the new regime, Tax Year 2026-27: the in-hand salary calculator’s defaults.
| CTC | ₹1,00,000 |
|---|---|
| − Your employer’s PF | ₹3,000 |
| − Gratuity, set aside | ₹2,404 |
| = Gross pay: basic ₹50,000, HRA ₹25,000, special allowance ₹19,596 | ₹94,596 |
| − Your PF | ₹3,000 |
| − Professional tax (assumed: state not chosen) | ₹200 |
| − Income tax | ₹0 |
| = Take-home | ₹91,396 |
Where the CTC goes, from 3 LPA to 50 LPA
A month, at the same defaults. Open a CTC for its full payslip and both regimes.
| CTC | Your PF and ESI | Income tax | Take-home | Share of CTC |
|---|---|---|---|---|
| 3 LPA | ₹1,594 | ₹0 | ₹20,698 | 82.8% |
| 4 LPA | ₹2,126 | ₹0 | ₹27,664 | 83% |
| 5 LPA | ₹2,657 | ₹0 | ₹34,630 | 83.1% |
| 6 LPA | ₹3,000 | ₹0 | ₹42,598 | 85.2% |
| 8 LPA | ₹3,000 | ₹0 | ₹58,864 | 88.3% |
| 10 LPA | ₹3,000 | ₹0 | ₹75,130 | 90.2% |
| 12 LPA | ₹3,000 | ₹0 | ₹91,396 | 91.4% |
| 15 LPA | ₹3,000 | ₹7,188 | ₹1,08,607 | 86.9% |
| 18 LPA | ₹3,000 | ₹11,193 | ₹1,29,001 | 86% |
| 20 LPA | ₹3,000 | ₹14,576 | ₹1,41,885 | 85.1% |
| 25 LPA | ₹3,000 | ₹24,459 | ₹1,72,666 | 82.9% |
| 30 LPA | ₹3,000 | ₹36,839 | ₹2,00,951 | 80.4% |
| 40 LPA | ₹3,000 | ₹62,214 | ₹2,56,906 | 77.1% |
| 50 LPA | ₹3,000 | ₹87,589 | ₹3,12,862 | 75.1% |
Professional tax by state
At 12 LPA, the states whose schedules we have checked. Take-home in a usual month is ₹91,396 in each of them, ₹91,596 with no professional tax.
| State | A month | In February | A year |
|---|---|---|---|
| Maharashtra | ₹200 | ₹300 | ₹2,500 |
| Karnataka | ₹200 | ₹300 | ₹2,500 |
| Telangana | ₹200 | ₹200 | ₹2,400 |
| Andhra Pradesh | ₹200 | ₹200 | ₹2,400 |
| Gujarat | ₹200 | ₹200 | ₹2,400 |
| No professional tax | ₹0 | ₹0 | ₹0 |
What changes take-home
At 12 LPA, one choice at a time against the defaults, a month. Your offer letter or payslip says which applies.
| PF on the full wages instead of up to the ceiling | −₹6,000 |
|---|---|
| No gratuity in the CTC | +₹2,404 |
| Basic at 40% of the CTC instead of 50% | +₹110 |
| The old regime, with no rent or investments claimed | −₹10,966 |
How this is worked out
The steps
- CTC = gross pay + your employer’s PF, ESI and NPS + the gratuity provision: what your employer spends on you in a year.
- Gross pay = basic + HRA + special allowance, the payslip’s total before deductions.
- Take-home = gross pay − your PF − your ESI − professional tax − income tax.
Each step’s rule, with its source, is on the in-hand salary calculator, which works out these figures with the same code each time this page is opened.
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.
Assumptions
- A fixed CTC, the same every month: no bonus, variable pay or reimbursements.
- Income tax for Tax Year 2026-27, the financial year from 1 April 2026 to 31 March 2027, spread evenly over the months.
- Professional tax as each state’s schedule sets it; other states are not covered yet.
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.