What is CTC?
Cost to Company is the total annual spend your employer commits to you. It includes your cash salary plus benefits like the employer's provident fund contribution, which never reaches your bank account directly.
Thrivelance Tools
CTC to In-Hand Salary Calculator
Convert your annual Cost to Company (CTC) into actual monthly in-hand salary. Accounts for employer and employee provident fund, income tax, and the 4% cess.
Enter your CTC
In-hand salary updates as you change CTC, basic pay, and tax regime.
In-hand (monthly)
Cash salary after PF and tax.
In-hand (annual)
Yearly take-home.
| Component | Annual |
|---|---|
| Cost to Company | |
| Basic pay | |
| Employer PF (12% of basic) | |
| Gross salary | |
| Employee PF (12% of basic) | |
| Income tax + cess | |
| In-hand salary |
Why in-hand is lower than CTC
The employer PF, your own PF deduction, and income tax all come out between CTC and the cash you take home, so monthly in-hand is meaningfully lower than CTC / 12.
Provident fund
Both you and your employer contribute 12% of basic pay to EPF. It's a forced savings scheme, so it reduces take-home but builds a retirement corpus.
Assumptions
This is a simplified model: basic pay is a percentage of CTC, PF is 12% of basic, and tax follows your selected regime. Actual structures vary by employer.
FAQ
Common questions about this calculator.
Why is my in-hand salary lower than my CTC?
CTC includes the employer's provident fund contribution and other benefits that never reach your bank account. After employer PF, your own PF deduction, and income tax, the cash in hand is noticeably lower than CTC divided by 12.
How is basic pay determined?
Basic pay is usually 40-50% of CTC and is set by your employer. It drives both the employer and employee provident fund contributions of 12% each.
Which regime should I pick?
The new regime is the default and typically gives higher in-hand pay unless you claim large deductions under the old regime.
Is this exact?
It's a close estimate using a simplified salary structure. Your actual payslip depends on your employer's exact components, allowances, and any professional tax.