From CTC to Take-Home — Where Your Salary Actually Goes
A ₹18 lakh CTC does not put ₹1.5 lakh a month in your bank account — and the gap routinely surprises even experienced professionals. CTC is the employer's total cost, which bundles in employer PF contributions and gratuity provisioning you never see in payroll. Strip those out and you get gross salary; deduct your own PF, professional tax and income tax from that, and what remains is take-home. This calculator makes every step of that waterfall visible.
Four deductions do the damage. Employee PF takes 12% of basic salary (capped at ₹21,600 a year against the statutory ₹15,000 wage ceiling). ESI takes 0.75% of gross, but only when gross salary is ₹21,000 a month or less. Professional tax, in states that levy it, claims up to ₹2,500 a year. The largest line is income tax via monthly TDS — computed here under the new regime by default, with its ₹75,000 standard deduction and the rebate that zeroes out tax up to ₹12 lakh.
Salary structure matters as much as salary size, and the basic-pay percentage is the lever: a higher basic means more PF (forced savings, lower take-home) and a larger HRA base. The HRA exemption itself exists only in the old regime — the familiar minimum of actual HRA, rent paid less 10% of basic, and 50% or 40% of basic for metro or non-metro cities. The calculator models both regimes so you can see whether your rent actually justifies opting out of the default.
Use it before accepting an offer, when comparing two structures at the same CTC, or — if you run a business — to show candidates an honest net figure at offer stage. PGA & Co. manages payroll, PF/ESI registrations and TDS compliance for employers across India, including foreign companies running their first Indian payroll, so the assumptions here mirror what we implement in practice.
Salary Inputs
"Calculate Take-Home Salary"
Frequently Asked Questions
Why is my take-home so much lower than my CTC?
Because CTC includes money you never receive as salary: the employer's 12% PF contribution and the 4.81% gratuity provision are part of CTC but sit outside gross pay. From gross, your own PF (12% of basic), professional tax, and TDS on income tax are deducted monthly. Depending on structure and tax regime, take-home of 70–85% of CTC is normal.
Is HRA exemption available under the new tax regime?
No. HRA exemption, along with most salary exemptions and Chapter VI-A deductions, is available only under the old regime. The new regime compensates with lower slab rates and the ₹75,000 standard deduction. If you pay substantial rent in a metro, the old regime can still win — compute both before declaring your regime choice to payroll.
When does ESI apply to my salary?
Employee State Insurance applies when gross monthly salary is ₹21,000 or below (₹25,000 for employees with disability), in establishments with 10 or more employees. The employee contributes 0.75% of gross and the employer 3.25%. Once your salary crosses the ceiling mid-contribution-period, deductions continue until that period ends, then stop.
Is the employer's PF contribution my money?
Yes — it lands in your EPF account along with your own 12%, earns the notified interest rate, and is withdrawable per EPF rules. That is exactly why employers include it in CTC. What is misleading is treating it as spendable salary: it is retirement savings with tax benefits, not cash flow.
Which regime gives a salaried employee higher take-home?
For FY 2025-26, the new regime usually wins up to mid-range salaries because of the ₹12 lakh rebate threshold and ₹75,000 standard deduction. The old regime overtakes only when combined HRA exemption, 80C, 80D and home-loan interest deductions are large. The crossover point is specific to your rent and investments — this calculator shows both numbers side by side.