CTC to In-Hand Salary Calculator 2026-27
Work out what a CTC offer actually pays each month after EPF, professional tax and income tax.
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Tax year 2026-27. Uses the EPF wage ceiling of ₹25,000, raised from ₹15,000 on 17 September 2026 — the first change since 2014.
₹12.00 lakh
Usually 40 to 50 per cent. It is on your offer letter.
Check your payslip — employers differ.
Varies by state, capped at ₹2,500. Zero in some states.
In-hand each month
₹0
Results update as you type.
Where your CTC goes
| Component | Yearly | Monthly |
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Employer contributions are part of CTC but never reach your bank account. They are real money, just not cash.
Why CTC and take-home differ so much
CTC means cost to company. It is what your employer spends on you, which is not the same as what they pay you. Two things are usually inside it that never reach your account: the employer’s own EPF contribution, and an accrual for gratuity you will only receive after five years of service.
gross = CTC − employer EPF − gratuity
in-hand = gross − your EPF − professional tax − income tax
A gap of 20 to 30 per cent between the CTC on an offer letter and the money arriving monthly is entirely normal, and it is the single most common surprise in a first job.
The EPF ceiling moved this month
The statutory wage ceiling for EPF rose from ₹15,000 to ₹25,000 a month with effect from 17 September 2026 — the first revision since September 2014. Most articles and calculators still assume the old figure.
It only changes your numbers if your employer caps EPF at the ceiling rather than paying on full basic. Both practices are lawful and both are common, which is why this calculator asks rather than assuming. Your payslip settles it: a contribution stuck near a flat figure regardless of salary means capping.
The band where a raise costs you money
Under the new regime, salary between roughly ₹12.75 lakh and ₹13.45 lakh sits inside the section 87A marginal relief band. Tax there is not charged at a slab rate at all: it equals the entire amount by which taxable income exceeds ₹12 lakh.
That is a marginal rate of 100 per cent, and the 4 per cent health and education cess charged on top carries no marginal relief of its own. So every extra rupee earned in that band costs about ₹1.04 in tax, and take-home drifts slightly downas salary rises. It is a genuine quirk of the law rather than a rounding artefact, and the calculator says so when your figures land there.
For the tax side on its own, including the old versus new regime comparison, use theincome tax calculator.
Frequently asked questions
Why is my in-hand salary so much lower than my CTC?
Because CTC is what you cost the employer, not what you are paid. It usually includes the employer’s own EPF contribution and an accrual for gratuity, neither of which reaches your bank account. Your own EPF, professional tax and income tax then come out of what is left. A gap of 20 to 30 per cent between CTC and take-home is entirely normal.
Has the EPF wage ceiling changed?
Yes, and recently. It rose from ₹15,000 to ₹25,000 a month with effect from 17 September 2026 — the first revision since September 2014. Many calculators and articles still assume ₹15,000. It only matters if your employer caps EPF at the statutory ceiling rather than paying on full basic.
Should I pick actual basic or the capped ceiling for EPF?
Check your payslip. Both are lawful and both are common. If your EPF deduction is close to 12 per cent of your full basic pay, choose actual. If it is around ₹3,000 a month regardless of how much you earn, your employer is capping at the ceiling. Capping means more cash now and less retirement saving.
Why does a higher basic salary reduce my take-home?
Because EPF and gratuity are both calculated on basic. Raising basic from 40 to 50 per cent of CTC increases your EPF deduction, so less arrives as cash — but the money is not lost, it has moved into your provident fund, and your employer’s matching contribution rises too. A low basic gives more cash now; a high basic gives more savings.
What is professional tax and why is it not filled in?
A small tax levied by some state governments, capped at ₹2,500 a year. It varies by state and by salary band, and several states do not levy it at all. Rather than guess your state and risk being wrong, the field is yours to set — the exact figure is on your payslip.
Can my take-home really fall when my salary rises?
In one narrow band, yes. Between roughly ₹12.75 lakh and ₹13.45 lakh of salary under the new regime, the section 87A rebate is being withdrawn through marginal relief: tax equals the whole of the excess over ₹12 lakh, and the 4 per cent cess on top has no relief of its own. So each extra rupee costs about ₹1.04, and take-home edges down. The calculator flags it when your salary lands there.
Is my salary data sent anywhere?
No. Everything runs in your browser. Nothing you enter is transmitted, stored or logged.
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