How it works
CTC (cost to company) is what your employer spends on you in a year, not what reaches your bank account. Part of it is paid to you as salary, part goes to provident fund and gratuity, and your own PF and professional tax are deducted before you are paid.
This calculator splits CTC into basic pay, HRA and a special allowance that makes up the rest, then subtracts your PF and professional tax. It does not calculate income tax, which depends on your tax regime, deductions and the financial year, so your real take-home will be lower once TDS is deducted.
The formula
Basic = CTC ÷ 12 × basic %. HRA = basic × HRA %. PF = 12% of the PF wage (basic, or the ceiling if basic is capped).
Gross salary = CTC ÷ 12 − employer PF − gratuity. Take-home before tax = gross − employee PF − professional tax.
A worked example
For a CTC of ₹12,00,000 with basic at 50%, HRA at 50% of basic, PF capped at a ₹15,000 wage and ₹200 professional tax: monthly basic ₹50,000, HRA ₹25,000, employer PF ₹1,800, special allowance ₹23,200, gross ₹98,200 and take-home before income tax ₹96,200.
Frequently asked questions
Why is my take-home less than CTC divided by 12?
Employer PF and gratuity are counted in CTC but are not paid to you each month, your own PF and professional tax are deducted, and income tax is deducted on top of that.
Does this include income tax?
No. TDS depends on your regime, investments, other income and the rules for the year, so the take-home shown is before income tax.
What is the basic pay percentage?
Employers choose it. Recent labour code changes may require basic pay and similar wage components to make up a larger share of total pay than before, so check the exact rule and your offer letter. You can set any percentage here.
What is the PF wage ceiling?
Many employers calculate PF on basic pay up to a monthly ceiling, and others on full basic pay. The ceiling has been under review, so enter the figure that applies to you, or choose full basic.