In-Hand Salary Calculator

In-hand salary = CTC - (Employer PF + Gratuity) - Employee PF - Professional Tax - Income Tax. Use our calculator to get accurate monthly take-home based on your CTC, deductions, and tax regime choice.

New regime offers lower tax rates and higher standard deduction (₹75,000) but no exemptions. Old regime allows 80C (₹1.5L), 80D, HRA, NPS (₹50k extra). Choose based on your investments and deductions - our calculator compares both automatically.

Employee NPS counts toward 80C (₹1.5L) + additional ₹50k under 80CCD(1B) in old regime. Employer NPS (up to 10% of basic) reduces taxable income in BOTH regimes without reducing take-home salary.

Section 87A provides full tax rebate if taxable income is ≤ ₹5 lakh (old regime) or ≤ ₹12 lakh (new regime). This means zero tax payable within these limits.

HRA exemption (old regime only) = Minimum of: (a) Actual HRA received, (b) Rent paid - 10% of basic, (c) 50% of basic (metro) or 40% (non-metro). Metro cities: Delhi, Mumbai, Kolkata, Chennai.

Under the Code on Wages 2019 (in force 21 Nov 2025), basic + DA must be at least 50% of total CTC. Older payslips often showed 30-45% to reduce PF/gratuity costs, but new and restructured offers must comply. Higher basic means higher PF, gratuity, and HRA benefits but lower monthly take-home. Our calculator defaults to 50% in Quick Mode and warns if you enter less.

The Code on Wages 2019, in force from 21 November 2025, mandates that 'wages' (basic + DA + retaining allowance) form at least 50% of an employee's total remuneration. Excluded components — HRA, conveyance, bonus, OT, reimbursements — cannot together exceed 50% of CTC. If they do, the excess is automatically treated as wages for statutory calculations (PF, gratuity, ESI). Practical impact: employer PF and gratuity rise; monthly take-home falls slightly but long-term retirement savings increase.

If your existing structure has basic at 30-40% of CTC, your employer will likely restructure to comply. Example: on a ₹15L CTC, basic typically rose from ₹5.5L to ₹7.5L. PF (12% of basic) rises from ~₹66k to ~₹90k a year. Monthly take-home falls by roughly ₹3,000-₹4,500. Gratuity provision (4.81% of basic) and HRA exemption ceiling (50% of basic in metro) both increase. Net effect: slightly lower in-hand, materially higher retirement corpus.

Yes. PF (12% of basic + DA) rises proportionally with the higher basic. Gratuity (15/26 × monthly basic × years of service) at separation is now computed on the new higher base. ESI (if applicable) also expands. The calculator computes PF and gratuity off whatever basic you enter — set basic to 50% of your CTC to model the post-2025 structure.

No. Employer PF and Employer NPS are part of CTC but NOT deducted from monthly salary. They reduce taxable income but don't affect your in-hand pay. Only employee PF is deducted monthly.

No. Bonus is a one-time payment that increases your annual tax, which is then spread across 12 months as higher TDS. Your monthly salary remains the same. The calculator shows separate 'Bonus Take-Home' after deducting the incremental tax.

Yes, salaried individuals can switch between tax regimes every financial year while filing ITR. However, if you have business income, you can switch only once in your lifetime.

Variable pay is performance-linked compensation (monthly, quarterly, or annual) that's fully taxable in the year received. It increases your annual tax and monthly TDS but does NOT increase your fixed monthly salary. The calculator shows separate take-home for variable pay after deducting incremental tax.

Surcharge is an additional tax on high-income earners: 10% for ₹50L-₹1Cr, 15% for ₹1Cr-₹2Cr, 25% for ₹2Cr-₹5Cr, and 37% above ₹5Cr. Marginal relief ensures the extra tax doesn't exceed the income above the threshold. Our calculator computes this automatically.