CTC to In-hand Calculator

Cost-to-company in Indian offer letters is a yearly bundle: basic, allowances, employer PF, gratuity accruals, sometimes variable pay. The number that pays rent in Koramangala is monthly in-hand after employee PF and professional tax. This calculator subtracts a PF figure you type and an indicative ₹200 professional tax from monthly CTC so the offer is less abstract.

Why CTC is not in-hand

Campus offers in Pune and Hyderabad quote CTC because it looks larger. Candidates then discover that employer PF is not take-home and that professional tax in states such as Karnataka or Maharashtra nicks another few hundred rupees. IndiaKit uses your annual CTC and the employee PF you expect so you can compare two letters on cash, not on adjectives.

What we subtract

Monthly gross is annual CTC divided by 12. Estimated in-hand is that gross minus employee PF minus ₹200 professional tax. For a ₹12 lakh CTC and ₹1,800 monthly employee PF, monthly gross is ₹1,00,000 and in-hand is ₹98,000 in this simplified model.

Real payslips also lose income-tax TDS, which depends on regime and declarations, and may lose meal cards, nps, or other flexi deductions. Employer PF (often 12% of PF wages, capped) sits inside CTC but never hits your account. Gratuity is a leaving benefit, not monthly cash.

Professional tax slabs differ by state and sometimes by month (February in some states). The ₹200 here is only a placeholder. Labour and commercial-tax department pages for your state are the official source.

A ₹12 lakh CTC offer in Pune

Aditi receives a ₹12,00,000 CTC letter for a Pune product job. She types employee PF as ₹1,800 — a common cap-related figure when PF wages sit at the statutory ceiling. IndiaKit shows ₹1,00,000 monthly gross and ₹98,000 estimated in-hand after PF and ₹200 professional tax. She still waits for the TDS projection in the annexure before she signs.

Payroll is still the source of truth

Variable pay, joining bonuses, ESOP perquisites, and actual TDS are not modelled. Professional tax is a flat ₹200 stand-in. Your appointment letter and the first payslip win over this page.

Common questions

Why is employer PF in CTC if I never see it?

Because the company spends it on your behalf into the EPFO. It is a retirement contribution, not a monthly credit. Employee PF, by contrast, is deducted from your side and is the field this tool asks for.

Is ₹1,800 PF the legal maximum?

Employee PF is commonly 12% of PF wages. Many private-sector payrolls cap PF wages at ₹15,000, which yields ₹1,800 employee share. Some employers contribute on higher basic; read the CTC annexure.

Which states charge professional tax?

Several, including Maharashtra, Karnataka, West Bengal and Telangana, with their own slabs. Confirm on the commercial-tax or labour site for the state where you work, not from a national rumour.