Salary Calculator — CTC to In-Hand Salary 2024-25

Your Cost to Company (CTC) is the total expense your employer incurs for you, while in-hand salary (net salary or take-home pay) is what you actually receive in your bank account after all deductions.

CTC Components Explained

• Basic Salary: Usually 40-50% of CTC. Base for EPF, HRA, and gratuity calculations.
• HRA (House Rent Allowance): Typically 40-50% of basic. Partially tax-exempt if you pay rent.
• Special Allowance: Remaining amount after basic, HRA, and employer contributions. Fully taxable.
• Employer EPF: 12% of basic (up to ₹15,000 wage ceiling) = ₹1,800/month. Part of CTC but not in-hand.
• Gratuity: 4.81% of basic. Payable after 5 years of service. Part of CTC but not in-hand.

Formula: CTC to In-Hand Salary

Key Deductions from Salary

• Employee EPF: 12% of basic salary (matched by employer). Builds retirement corpus.
• Professional Tax: State-level tax, max ₹2,500/year. Varies by state.
• Income Tax (TDS): Deducted monthly based on your tax slab and regime (old vs new).