Calculator scope: resident individual, ordinary slab-rate income only. Enter the stated eligible income and deductions. NRI/HUF cases, special-rate gains, family pension and other return-level adjustments require a separate calculation.
EPF limit changed: the mandatory-coverage wage ceiling increased from Rs 15,000 to Rs 25,000 a month, effective 17 September 2026. Read our new EPF Rs 25,000 limit guide for coverage, salary impact and contribution-basis checks.
Basic is set as a share of CTC. Employer PF and gratuity are part of your CTC but are not paid in your monthly salary. Professional tax defaults to an illustration of Rs 2,400 a year; enter the applicable amount, including zero. It reduces taxable salary only under the old regime. Enter eligible employee PF within old-regime deductions if claiming it; the tool does not add it again automatically.
Use this free take-home salary calculator to turn your annual CTC into your real monthly in-hand pay for FY 2026-27. Pick the new or old tax regime, set how much of your CTC is basic, and see exactly what PF, professional tax and income tax take out before the rest lands in your account.
How the take-home salary calculator works
Your CTC is not your salary. It is the full cost to the company, which includes parts you never see each month. This take-home salary calculator starts from CTC, removes the employer contributions that are not paid to you, and then deducts your provident fund, professional tax and income tax to arrive at your monthly in-hand pay.
What gets deducted from your CTC
Two pieces of your CTC are not part of your monthly pay: the employer PF, which is 12 percent of basic, and gratuity, which is 4.81 percent of basic. What is left is your gross salary. From that gross, your own deductions come out: employee PF at 12 percent of basic, professional tax of about 2,400 rupees a year which varies by state, and income tax. The remainder is your take-home. To see how your PF splits into EPF, pension (EPS), EDLI and admin charges on the new ₹25,000 ceiling, use our EPF calculator. To build the full salary structure under the new wage code, with the 50% wage test, ESIC, gratuity and labour welfare fund, use our salary structure calculator.
New regime vs old regime for FY 2026-27
Under the new regime you get a standard deduction of 75,000 rupees and, subject to the resident-individual section 156 rebate for ordinary slab-rate income, income up to 12 lakh rupees is effectively tax-free. Under the old regime the standard deduction is 50,000 rupees and you can claim deductions like 80C, 80D and HRA, which you can enter above. To compare the two side by side for your numbers, use our old vs new regime calculator. You can also check your HRA exemption, read how the new labour codes 50 percent wage rule reshapes your slip, and estimate your gratuity.
Assumptions this calculator uses
PF scope update, 22 September 2026: the Labour Ministry announcement describes an EPFO coverage ceiling of Rs 25,000 from 17 September 2026. This estimate does not determine enrolment, EPS allocation or scheme-specific contribution limits. Use the actual contribution base confirmed for your employment. Gratuity at 4.81% is a CTC provision assumption, not a calculation of your statutory entitlement.
Basic is an editable modelling assumption, defaulting to 50% of CTC. The law does not universally require basic salary to equal half of CTC: statutory wages must be determined from the actual included and excluded components. PF and gratuity bases, coverage and ceilings need separate payroll checks.
Frequently Asked Questions
How is take-home salary calculated from CTC?
Remove the employer PF and gratuity from CTC to get your gross salary, then subtract your employee PF, professional tax and income tax. What remains, divided by twelve, is your monthly in-hand pay.
Why is my in-hand much less than my CTC?
CTC includes employer contributions like PF and gratuity that are never paid to you monthly, plus your own PF and tax deductions, so your in-hand is always lower than your CTC.
Is income tax really zero up to 12 lakh?
A resident individual can obtain the new-law section 156 rebate against ordinary slab-rate tax with total income up to Rs 12 lakh. Special-rate income is not covered, and the salary-only Rs 12.75 lakh illustration requires an eligible standard deduction and no other income.
How much PF is deducted from salary?
This model uses a 12% employee and employer contribution on the modelled basic pay, optionally limited by the monthly contribution base you enter. Confirm the applicable wage base, coverage, rate and cap with payroll. A mandatory-coverage ceiling is not sufficient by itself to establish an individual contribution calculation.
If you run payroll for a team, our Zoho Payroll setup guide for India shows how these same salary components are configured in payroll software.
This calculator applies the current slabs; see our income tax slab rates FY 2026-27 guide for the full breakdown by regime.
Use this estimate for resident individuals with normal slab-rate income. The Rs 12 lakh rebate does not cover special-rate income and is not available to NRIs or HUFs. Enter only eligible deductions; employer NPS limits can differ between regimes and employer types. Family pension is not employer pension. The current legal references are sections 202 and 156 of the 2025 Act.
Sources: Amended Act, sections 124, 156 and 202.