Take Home Salary Calculator

CTC is a company's accounting figure for what you cost them annually — it's not what you receive. Two of the biggest gaps between CTC and take-home are things you never see in your bank account at all: the employer's PF contribution and, for many companies, other benefits like insurance premiums or gratuity provisions. On top of that, your own PF contribution and income tax come out before the remainder hits your account — which is why a ₹12 lakh CTC often works out to noticeably less than ₹1 lakh a month in hand, even though the arithmetic "should" be close.

The basic salary percentage matters more than people realize, because PF is calculated as a percentage of basic, not of CTC. A company that structures your CTC with a higher basic salary percentage will deduct more toward PF (lowering your immediate take-home but boosting your retirement savings) than one with a lower basic and more allowances. Neither structure is "better" outright — it's a trade-off between more cash now and more forced savings — but it's worth understanding when comparing two job offers with the same headline CTC.

A ₹15,00,000 CTC with a 40% basic salary produces roughly ₹1,03,700/month in estimated take-home pay — noticeably less than the naive ₹1,25,000/month you'd get from simply dividing CTC by 12, with the gap made up by employer PF (never received directly), employee PF, professional tax, and income tax.

A company that structures more of your CTC as basic salary deducts more toward PF (lowering immediate take-home but boosting retirement savings) than one with a lower basic and more allowances — meaning the "basic salary %" figure quietly has a real effect on your monthly paycheck, even when two offers show an identical headline CTC.