In-hand salary calculator: convert your CTC to monthly take-home pay (2026-27)
Take-home pay = CTC − employer PF − gratuity provision − your PF − professional tax − income tax. For example, on a ₹10 lakh CTC with 50% basic, PF on the ₹25,000 wage ceiling (raised from ₹15,000 on 17 Sep 2026) and gratuity in CTC, monthly in-hand under the new regime is about ₹75,100 (about ₹71,100 if PF is cut on full basic). The new labour codes (from 21 Nov 2025) require wages to be at least 50% of pay, which can raise PF and gratuity and slightly lower take-home.
Key facts Last verified: 27 Sep 2026
| Item | Details | Source |
|---|---|---|
| Employee PF | 12% of basic + DA (often on the ₹25,000 wage ceiling, from 17 Sep 2026) | Ministry of Labour (PIB) |
| Employer PF | 12% (8.33% of up to ₹25,000, max ₹2,083, goes to EPS pension) | EPFO via PIB |
| Gratuity provision | 4.81% of basic (15/26 ÷ 12), if included in CTC | Payment of Gratuity rules |
| Labour codes | In force from 21 Nov 2025; wages ≥ 50% of total pay | Ministry of Labour |
| Professional tax (Maharashtra) | ₹2,500 a year for most salaried people (₹200 a month, ₹300 in February) | Maharashtra State Tax |
| Standard deduction | ₹75,000 (new) / ₹50,000 (old) | Income Tax Dept |
How the calculation works
| Step | Item |
|---|---|
| 1 | Start with CTC (cost to company) |
| 2 | Subtract employer PF (it goes to your PF account, not your salary) |
| 3 | Subtract gratuity provision if your company includes it in CTC |
| 4 | = Gross salary |
| 5 | Subtract your PF (12%) |
| 6 | Subtract professional tax |
| 7 | Subtract income tax (new or old regime) |
| 8 | = Take-home (in-hand) salary |
Bonuses, variable pay, meal cards and reimbursements are not included — add them yourself if they are paid regularly.
Example: ₹10 lakh CTC
- Basic (50%): ₹5,00,000 a year → PF wage capped at ₹25,000 a month
- Employer PF: ₹36,000 · Gratuity: ₹24,050 → Gross: ₹9,39,950
- Your PF: ₹36,000 · Professional tax: ₹2,500
- New-regime tax: taxable ₹8,64,950 → ₹0 (rebate up to ₹12 lakh)
- Take-home ≈ ₹9,01,450 a year ≈ ₹75,100 a month
If PF is on full basic instead of the ₹25,000 ceiling, both your PF and the employer’s PF rise to ₹60,000 a year, and take-home falls to about ₹71,100 a month — but your PF savings rise by ₹48,000 a year.
New labour codes: what changed for salary slips
- Wages (basic + DA + retaining allowance) must be at least 50% of total pay. If allowances exceed 50%, the excess is added back to wages for PF and gratuity.
- Fixed-term employees get gratuity after 1 year.
- PF rates are unchanged (12% + 12%); only the base may grow.
Frequently asked questions
How do I calculate in-hand salary from CTC?
Subtract employer PF, gratuity provision (if in CTC), your PF, professional tax and income tax from your CTC, then divide by 12.
Why is my in-hand salary lower after the labour codes?
Because basic pay must be at least 50% of pay, PF and gratuity contributions may rise, which lowers take-home but increases retirement savings.
Is professional tax deducted in Maharashtra?
Yes. Most salaried people pay ₹2,500 a year (₹200 a month and ₹300 in February). Women earning up to ₹25,000 a month are exempt under state rules.
Does this include income tax?
Yes, under the regime you choose, with standard deduction, rebate and 4% cess.
Official links
Use only these government websites. HumainOne is not connected to any of them.
- EPFOPF rules and contribution rates
- Ministry of Labour & EmploymentLabour codes, wage definition, gratuity
- Income Tax DepartmentTax rules and calculator
Disclaimer: HumainOne is an independent information website. We are not affiliated with UIDAI, the Income Tax Department, EPFO, NPCI, the Election Commission, the Government of Maharashtra or any government body. We do not accept applications, documents or fees. Information is checked against official sources on the date shown but rules change — always confirm on the official website before acting. Calculators give estimates, not official figures, and this is not tax or legal advice.