Calculate Your In-Hand Salary in Seconds

In-hand salary (or net take-home salary) is the actual cash amount credited to your bank account each month. It is computed by subtracting all statutory and voluntary deductions (such as EPF, Professional Tax, and Income Tax/TDS) from your gross monthly salary.

Cost to Company (CTC) is the total annual cost a company incurs to employ an individual. It includes your direct cash pay, indirect allowances (such as food coupons or health insurance), and retirement benefits (like employer matching PF contributions and gratuity accruals).

Employee Provident Fund (EPF) contribution is statutory. The employee contributes 12% of their basic salary + dearness allowance (DA) towards their EPF account. The employer matches this 12% contribution, of which 8.33% goes to the Employees' Pension Scheme (EPS) and 3.67% goes to the EPF.

Gratuity is calculated using the formula: Gratuity = (15 * Last Drawn Basic Salary * Years of Service) / 26. By law, gratuity is payable to an employee upon resignation or retirement after completing 5 years of continuous service.

CTC includes all elements of your compensation package, including retirement funds (gratuity, employer PF matching) and perks. Take Home Salary is the actual net cash you receive. Take-home salary is always lower than CTC because it excludes non-cash benefits and is calculated after deducting tax and retirement savings.

The New Tax Regime features lower tax slabs but eliminates most standard deductions (like HRA, LTA, and Section 80C). The Old Tax Regime has higher tax slabs but allows tax exemptions. Typically, if you claim deductions exceeding ₹2.5 Lakh per year (80C, 24b home loan, rent, health insurance), the Old Regime is better. If you have minimal deductions, the New Regime is more beneficial.