How take-home salary is worked out
Cost to company (CTC) includes what the employer pays on your behalf. Take-home is what reaches your bank account each month:
- Gross salary = monthly CTC − employer PF − employer ESIC (when covered).
- Take-home = gross − employee PF − employee ESIC − Professional Tax − income tax (TDS).
PF in this calculator
PF is 12% of PF wages (basic plus DA, and under the Labour Codes any allowances above half of pay). "On the wage ceiling" caps PF wages at ₹25,000, the ceiling from 17 September 2026. Read what the new PF ceiling changes.
ESIC
ESIC applies when gross is ₹21,000 a month or less: 0.75% from you and 3.25% from the employer. ESIC rules explained.
Income tax
Tax is worked out for the year under the regime you choose, with the standard deduction, the rebate and 4% cess, and spread evenly over 12 months. Under the new regime, salaried income up to ₹12.75 lakh a year (₹12 lakh plus the ₹75,000 standard deduction) pays no tax. Marginal relief just above the rebate limit is not applied here.
Frequently asked questions
What is the difference between CTC and in-hand salary?
CTC includes employer contributions (PF, ESIC, sometimes gratuity and insurance). In-hand is what you receive after your own PF, ESIC, Professional Tax and income tax are deducted from gross salary.
How much PF is deducted from salary?
12% of PF wages. If PF is capped at the wage ceiling, at most 12% of ₹25,000 = ₹3,000 a month from 17 September 2026.
Is the new tax regime better?
For most salaried people without large deductions, yes. Try both regimes in the calculator with your own deductions.