# Take-Home Salary Calculator

> Take-home pay is your CTC minus the parts you never receive in cash (employer PF, gratuity provision, insurance) and the deductions from your gross pay (employee PF, professional tax and income tax). For most salaried people the biggest swings come from the tax regime and how much of the CTC is basic salary, because PF and gratuity are linked to it.

Interactive calculator: https://www.industax.com/calculators/take-home-salary

- **Employee PF:** 12% of basic + DA
- **Professional tax (most states):** Up to ₹2,500 a year
- **New regime tax-free salary:** Up to ₹12.75 lakh

## From CTC to in-hand

| Step | What's deducted |
| --- | --- |
| CTC | Total cost to company |
| − Employer components | Employer PF (12% of basic), gratuity (≈4.81% of basic), insurance, variable pay not yet paid |
| = Gross salary | What appears as earnings on the payslip |
| − Employee PF | 12% of basic + DA (or of the wage ceiling if opted) |
| − Professional tax | State levy, up to ₹2,500 a year |
| − Income tax (TDS) | Per regime chosen |
| = Take-home | Credited to your bank account |

## What the Labour Codes changed

The four Labour Codes, in force from 21 November 2025, define 'wages' so that allowances excluded from it can't exceed 50% of total remuneration. Where basic salary was kept low, the excess is added back for PF and gratuity, which can raise those contributions and reduce in-hand pay while increasing long-term savings.

## Worked example: ₹15 lakh CTC, new regime

1. Basic ₹6,00,000. Employer PF ₹72,000 and gratuity ₹28,860 are part of CTC → gross salary ≈ ₹13,99,140.
2. Employee PF ₹72,000; professional tax ₹2,500.
3. Tax: ₹13,99,140 − ₹75,000 standard deduction = ₹13,24,140 taxable → tax ≈ ₹78,621 + cess ≈ ₹81,766.
4. Take-home ≈ ₹13,99,140 − ₹72,000 − ₹2,500 − ₹81,766 = ₹12,42,874 a year.

**Result:** About ₹1.03 lakh a month in hand.

## FAQs

### Why is my in-hand much lower than CTC ÷ 12?

Because CTC includes employer PF, gratuity and benefits you don't receive monthly, and your gross pay is reduced by employee PF, professional tax and TDS.

### Can I reduce my PF to increase take-home?

If your basic salary is above the statutory wage ceiling, you and your employer may be able to contribute only on the ceiling, subject to company policy. Below the ceiling, 12% is mandatory.

### Does the tax regime change my monthly pay?

Yes. Employers deduct TDS based on the regime you declare. If deductions are small, the new regime usually gives higher take-home.

## Official sources

- incometaxindia.gov.in: https://www.incometaxindia.gov.in/
- Ministry of Labour — Labour Codes: https://labour.gov.in/

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Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.