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Calculators

Salary calculator: CTC to take-home

Put in your CTC and see what lands in your bank account each month after PF, gratuity, professional tax and income tax, and how the 50% wage rule in the labour codes changes it.

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%
The labour codes push wages to at least half of pay.
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Set by your state. Most charge up to ₹2,500; some charge none.
Take-home a month–
Income tax a year–
PF a year, both shares–
Gratuity provision–
Each monthGross pay –Your PF –Income tax –Professional tax –

Take-home pay a month at different basic shares

Why CTC is more than your salary

Cost to company includes money you do not get each month. Your employer's 12% PF share and a gratuity provision, usually 4.81% of basic pay, are both part of CTC. What is left is your gross salary. From that, your own 12% PF, professional tax and income tax are deducted, and the rest is your take-home pay.

The 50% wage rule

The labour codes, in force since 21 November 2025, say that allowances above half of your total pay count as wages. Many employers have raised basic pay to half of CTC. Higher basic means more PF and gratuity, which are savings, and a little less take-home pay. Move the basic share slider to see the effect.

PF at the new ceiling

Since 17 September 2026 the PF wage ceiling is ₹25,000 a month. If PF is worked out on the ceiling, both shares are ₹3,000 a month. Some employers work it out on full basic, which takes more from take-home pay and puts more into EPF.

What this leaves out

Variable pay, meal cards, employer NPS and HRA exemptions are not modelled. In the old regime only your PF is counted as a section 123 deduction; use the income tax calculator for the full picture.

Questions

Why did my take-home pay fall after the labour codes?

If your employer raised basic pay to half of CTC, PF and the gratuity provision rose with it. That money is saved for you, but it leaves less each month.

Is a ₹12 lakh CTC tax free?

Often close. Under the new regime a salary of up to ₹12.75 lakh pays no tax. Because PF and gratuity are taken out of CTC first, a ₹12 lakh CTC usually means a lower salary and no tax.

Does the employer PF come from my CTC?

Yes. It is part of CTC, so it is your money, paid into your EPF and pension accounts rather than your bank.

Sources

For illustration only. Salary structures differ from employer to employer. Check your payslip and offer letter. This is not tax advice.

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