How to Calculate In-Hand Salary
A step-by-step guide to calculating your monthly in-hand salary from CTC — including PF, professional tax, and income tax — with worked examples at ₹6L, ₹10L, and ₹15L.
Quick Answer
Quick answer
To calculate in-hand salary: start with your monthly gross (Basic + HRA + Special Allowance), subtract employee PF (12% of Basic, max ₹1,800/month), professional tax (₹200/month in most states), and income tax (TDS based on your regime). The remainder is your in-hand salary.
Why this matters
Before accepting any offer — or evaluating a raise — you need to know your actual monthly cash flow. Calculating in-hand yourself (or verifying with a trusted calculator) takes five minutes and can save you from a costly career mistake.
Step 1: Get the salary breakup from your offer letter
Step 2: Calculate monthly gross
Step 3: Subtract statutory deductions
Step 4: Arrive at in-hand salary
Examples
Worked example: ₹6 LPA (new tax regime, Karnataka)
Worked example: ₹10 LPA (new tax regime, Maharashtra)
Worked example: ₹15 LPA fixed (old regime with 80C, Karnataka)
Formulas
Monthly Gross
Basic + HRA + Special Allowance + Other Allowances
Sum of all cash components paid to you each month. Exclude employer PF and gratuity.
Employee PF (monthly)
min(12% × Basic, ₹1,800)
PF is 12% of Basic salary. When Basic exceeds ₹15,000/month, the contribution caps at ₹1,800.
In-Hand Salary
Monthly Gross − Employee PF − Professional Tax − Monthly TDS
The net amount credited to your bank account each month.
Common mistakes
- Using CTC ÷ 12 as the starting point instead of the actual gross breakup.
- Forgetting the PF cap — PF is not 12% of gross; it is 12% of Basic, capped at ₹1,800/month.
- Not comparing old vs new tax regime — at ₹10–15 LPA, the better regime depends on your rent and 80C investments.
- Including variable pay in monthly calculations — variable is annual and not guaranteed.
- Ignoring professional tax — it is small but mandatory in most states.
Frequently asked questions
How do I calculate in-hand from CTC without a breakup?
You cannot calculate it accurately without a breakup. Ask HR for one. If unavailable, assume Basic = 40% of fixed CTC and HRA = 40–50% of Basic as a rough starting point — but treat the result as an estimate, not a fact.
Does HRA reduce my in-hand?
HRA is paid to you as part of gross — it increases in-hand. However, claiming HRA exemption (by submitting rent receipts) reduces your taxable income, which lowers TDS and indirectly increases in-hand.
Which tax regime gives higher in-hand?
It depends. New regime has lower rates but fewer deductions. Old regime allows 80C (₹1.5L), HRA exemption, and home loan deductions. If you pay significant rent or have 80C investments, old regime often wins at ₹10–18 LPA.
Is there a quick formula for CTC to in-hand?
A rough estimate: in-hand ≈ 60% of (CTC ÷ 12) for mid-range salaries in the new regime. This varies widely — always calculate with your actual breakup for an accurate figure.
Continue learning
Build on what you just learned — these guides are the natural next step.
How to Compare Two Job Offers
Comparing job offers is not about picking the higher CTC. Here is a structured, step-by-step approach to compare two offers in-hand to in-hand — with the salary factors that actually matter.
CTC vs In-Hand Salary
CTC and in-hand salary are not the same thing — and the gap between them can be ₹2–4 lakh per year. Here is a clear side-by-side comparison with real numbers so you never confuse the two again.
Put it into practice
Turn what you learned into a real number — use a Salryd tool with your own figures.
Calculate your in-hand salary in seconds
Skip the manual math. Enter your CTC, breakup, state, and tax regime — Salryd calculates your exact in-hand salary with every deduction explained.
Related tools
Calculate with your own numbers using a Salryd tool.
Prerequisites
What is CTC?
CTC (Cost to Company) is the total annual amount your employer spends on you — not what lands in your bank account. Here is exactly what it includes, what it does not, and why the number on your offer letter is always bigger than your salary.
What is In-Hand Salary?
In-hand salary (take-home pay) is the amount that actually gets credited to your bank account each month — after PF, tax, and professional tax. Here is how it differs from CTC and gross, with real Indian examples.