Why is my take-home much less than my CTC?

CTC includes employer EPF (12% of basic), which is never credited to you. After removing that, your gross salary still sees deductions for employee EPF (12% of basic), professional tax, and income tax TDS before arriving at your take-home.

What is the EPF deduction from my salary?

You contribute 12% of basic salary as employee EPF, which is deducted from your gross salary. Your employer also contributes 12% of basic, but this is an employer cost included in CTC, not in your take-home. EPF contributions are eligible for Section 80C deduction.

What is professional tax and who pays it?

Professional tax is a state-level tax capped at ₹2,500/year, deducted by the employer. States like Maharashtra, Karnataka, and West Bengal charge it; Delhi, Haryana, and UP do not. It is deductible from taxable income under Section 16(iii).

What is included in CTC that is not part of take-home?

Besides employer EPF, CTC can include gratuity provisioning, group insurance premiums, medical insurance, and LTA. These are employer costs that do not appear in your bank account.

Salary Calculator

What is a Salary Calculator?

A salary calculator helps you understand the difference between your CTC (Cost to Company) and the actual amount credited to your bank account every month - your in-hand or take-home salary. In India, there is often a significant gap between the two due to deductions like EPF, professional tax, and income tax. This calculator breaks down your CTC into its individual components so you know exactly what to expect.

CTC vs Gross Salary vs Net Salary

CTC (Cost to Company) - The total annual cost your employer incurs for your employment. It includes your gross salary, employer's share of EPF and other benefits. CTC is the headline number on your offer letter.
Gross Salary - CTC minus the employer's contributions (like employer EPF). This is the salary before your own deductions (employee EPF, professional tax, income tax) are subtracted.
Net Take-Home / In-Hand Salary - Gross salary minus all employee-side deductions. This is the amount credited to your bank account each month.

Salary Components Explained

Basic Salary - Typically 40%-50% of CTC. It is the core component on which HRA, EPF, and gratuity are calculated. A higher basic means more EPF but also potentially higher tax.
HRA (House Rent Allowance) - Usually 20%-50% of basic salary. Partially or fully exempt from tax if you live in rented accommodation under the Old Tax Regime.
Special Allowance - A flexible component that makes up the balance of the salary structure after fixed components. Fully taxable.
Employee EPF - 12% of basic salary contributed by the employee. Deducted from gross salary and deposited into your EPF account. Qualifies for Section 80C deduction.
Employer EPF - 12% of basic salary contributed by the employer. Included in CTC but not in your gross salary (it is an employer expense). Of this, 8.33% goes to EPS and 3.67% to EPF.
Professional Tax - A state-level tax levied on salaried individuals. The maximum is ₹2,500 per year. Not all states charge professional tax; Maharashtra, Karnataka, West Bengal, and a few others do.

How to Use This Calculator

Enter your Annual CTC as mentioned in your offer letter.
Enter your Bonus or Variable Pay if included in the CTC figure.
Toggle whether Employer EPF is included in your CTC (most corporate offer letters in India include it).
Enter your Professional Tax - check your payslip for the actual amount deducted.
The calculator instantly shows your monthly and annual take-home along with a full salary breakdown table.

Advantages of Knowing Your Salary Breakdown

Negotiate better - understand what portion of your CTC is actually accessible income.
Plan finances accurately by knowing your exact monthly in-hand amount.
Identify tax-saving opportunities through HRA and EPF components.
Compare job offers on a like-for-like basis by normalising for EPF and benefits.
Plan for future salary hikes with realistic expectations about net increase.