Take Home Salary Calculator India — FY 2026-27
Convert CTC to monthly in-hand salary — EPF, professional tax, income tax, both regimes
Why Your ₹12 LPA Offer Doesn't Mean ₹1 Lakh Per Month
A fresher joins an IT company with a ₹12 LPA CTC offer. On the first day, the HR hands over an offer letter with ₹12,00,000 written on it. First payslip arrives and shows ₹77,500 credited to the bank account. That's ₹93,000 per year less than ₹12 LPA ÷ 12. Where did ₹22,500/month go? Three components of CTC are deducted before the money reaches your account: Employer's EPF contribution (₹1,800/month) that goes to your EPF account, not your bank. Your own EPF contribution (₹1,800/month) deducted from salary. Gratuity provision (₹4,808/month set aside — paid only after 5 years). This is the CTC trap that catches every first-time job seeker in India. The calculator above shows exactly what you will receive on the 1st of each month.
How Indian CTC Components Break Down
| Component | Typical % of Gross | Taxability | Notes |
|---|---|---|---|
| Basic Salary | 40–50% | Fully taxable | Base for EPF, HRA, gratuity calculation |
| HRA | 40–50% of basic | Partially exempt (if renting) | 50% metro / 40% non-metro of basic |
| Special Allowance | Balance of gross | Fully taxable | Varies; "Variable Pay" also here |
| Employee EPF | 12% of basic | 80C deductible (old regime) | Deducted from salary, goes to EPF A/c |
| Employer EPF | 12% of basic | Not in gross salary | Goes to EPF A/c; part of CTC |
| Gratuity | 4.81% of basic | Tax-free at exit (after 5 yrs) | Part of CTC; paid only after 5 years |
| Bonus | Varies | Fully taxable | Usually paid annually; may not be monthly |
EPF Wage Cap — The Misunderstood Rule
EPF (Employee Provident Fund) contributions are calculated on a maximum basic salary of ₹15,000 per month under the statutory wage ceiling. This means both employee and employer contribute 12% of ₹15,000 = ₹1,800 per month each, regardless of whether your actual basic salary is ₹40,000 or ₹1 lakh. Some companies pay EPF on the actual basic salary (which is higher for you and for them), while others use the ₹15,000 cap. Using the full basic for EPF increases retirement savings but reduces monthly take-home. Check your offer letter and payslip to confirm which applies to you.
Take-Home at Common CTC Levels (New Regime, FY 2026-27)
| Annual CTC | Monthly Gross | Total Deductions | Monthly Take-Home (approx) |
|---|---|---|---|
| ₹4 LPA | ₹33,333 | ₹4,200 | ≈₹29,133 |
| ₹6 LPA | ₹50,000 | ₹5,800 | ≈₹44,200 |
| ₹10 LPA | ₹83,333 | ₹7,600 | ≈₹77,500 |
| ₹12 LPA | ₹1,00,000 | ₹8,200 | ≈₹77,500 (zero income tax via 87A) |
| ₹15 LPA | ₹1,25,000 | ₹26,700 | ≈₹98,300 |
| ₹20 LPA | ₹1,66,667 | ₹46,500 | ≈₹1,20,167 |
| ₹25 LPA | ₹2,08,333 | ₹70,000 | ≈₹1,38,333 |
Approximate. New regime, 50% basic, EPF at ₹1,800/month cap, professional tax ₹2,400/year, metro city. Actual figures depend on salary structure and bonus timing.