CTC to in-hand
What actually reaches your account each month
Worked example
Using the default values, ctc to in-hand gives a in-hand each month of ₹85,395.
| Item | Value |
|---|---|
| Annual CTC | ₹12,00,000 |
| Basic | ₹6,00,000 |
| HRA | ₹2,40,000 |
| Employer PF | ₹72,000 |
| Gratuity provision 4.81% | ₹28,860 |
| Gross salary | ₹10,99,140 |
| Employee PF | ₹72,000 |
| Professional tax | ₹2,400 |
| Taxable income | ₹10,24,140 |
| Tax on income | ₹0 |
| Surcharge 0% | ₹0 |
| Cess 4% | ₹0 |
| Total income tax | ₹0 |
| Annual | ₹10,24,740 |
| Monthly | ₹85,395 |
What you need
- Annual CTC
- Basic as % of CTC
- HRA as % of basic
- PF base
- Variable pay
- Tax regime
Questions
Why is my in-hand so much lower than my CTC?
CTC includes what your employer spends, not what you receive — employer PF, the gratuity provision and any variable pay are inside the number but never hit your account monthly.
What basic percentage should I expect?
Between 40% and 50% is typical. Since the labour codes took effect in November 2025, wages must be at least half of total pay, so 50% is now the practical floor.
Important
An estimate. Professional tax is assumed at ₹200 a month and varies by state. On the old regime only the standard deduction and PF under 80C are modelled — add HRA and other deductions in the income tax calculator for a fuller picture. Under the labour codes basic plus DA must be at least half of total pay, so 50% is the realistic floor.