Salary Calculator

Calculate in-hand salary from CTC

Frequently Asked Questions

What is the difference between CTC and take-home salary?

CTC (Cost to Company) is total employer expenditure including benefits. Take-home salary is what you actually receive after deductions (PF, tax, insurance). Take-home is typically 60-75% of CTC depending on tax bracket and benefits structure.

What are common CTC components?

CTC typically includes: Basic salary (40-50% of CTC), HRA (40-50% of basic), Special allowances, Employer PF contribution (12% of basic), Gratuity (4.81% of basic), Insurance premiums, Leave encashment, and performance bonuses.

How is PF deducted from salary?

Employee contributes 12% of basic salary (up to ₹15,000 basic). Employer contributes 12% split as: 3.67% to PF and 8.33% to pension fund. For salary above ₹15,000, you can opt for higher deduction. PF contribution qualifies for 80C deduction.

Is professional tax deducted from salary?

Professional tax varies by state and is capped at ₹2,500/year. Most states charge ₹200/month for salaries above thresholds. It's a small deduction but applicable. Professional tax paid is deductible from income for tax purposes.

How can I increase my take-home salary legally?

Optimize salary structure with tax-free components: maximize HRA (if paying rent), claim LTA, include meal cards, fuel allowance, telephone reimbursement, NPS employer contribution. Request flexible benefits aligned with your expenses.

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