Quick Answer
CTC vs In-Hand Salary — The Key Difference
CTC (Cost to Company) is the total annual cost of employing you — including components you never receive monthly like Employer PF and Gratuity. In-hand salary is what actually hits your bank account after deducting Employee PF, Professional Tax, and Income Tax (TDS). For most Indians, in-hand salary is 60–75% of CTC.
Why Your CTC and In-Hand Salary Are Different
Every Indian who gets a job offer faces the same moment of confusion: the offer letter says ₹10 LPA, but when the first salary hits your account it is ₹71,000 — not ₹83,333 (which is what ₹10 LPA divided by 12 would be). The difference is not an error. It is how Indian salary structures work.
Your CTC includes multiple components that are either not paid to you monthly, or are deducted from your gross salary before it reaches your account. Understanding this difference is the most important piece of financial literacy for any salaried Indian.
What Reduces Your In-Hand Salary from CTC
Part of CTC but NOT monthly pay
✗
Employer PF (12% of Basic)
Goes to your EPF account, not salary
✗
Gratuity (4.81% of Basic)
Paid as lump sum after 5 years only
✗
Medical insurance (Varies)
Employer pays premium, part of CTC
Deducted from gross salary monthly
↓
Employee PF (12% of Basic)
Your contribution to EPF, tax-saving
↓
Professional Tax (₹200/month)
State-level tax, max ₹2,400/year
↓
Income Tax (TDS) (Per slab)
Monthly TDS based on annual tax liability
Formula: In-Hand = CTC − Employer PF − Gratuity − Employee PF − Professional Tax − Income Tax (TDS)
How Indian Salary Structure Works
All calculations in this guide use a standard salary structure. Your actual structure may differ — always check your offer letter or payslip for exact figures.
| Component | % of CTC | Notes |
|---|---|---|
| Basic Salary | 50% | Fixed, taxable; base for PF, HRA, Gratuity (new Labour Code: min 50% of CTC) |
| HRA | ~20% | 50% of basic for metro, 40% for non-metro; partially tax-exempt in old regime |
| Special Allowance | ~22% | Fully taxable; makes up the remaining gross salary |
| Employer PF | ~6% | 12% of Basic; part of CTC but credited to your EPF account, not monthly pay |
| Gratuity | ~2.4% | 4.81% of Basic; part of CTC, paid after 5 years service as lump sum |
Quick Reference — In-Hand Salary for All CTC Levels
All figures: New Tax Regime, FY 2025-26, standard structure (Basic = 50% of CTC), Professional Tax ₹200/month.
| CTC | Gross/Month | TDS/Month | In-Hand/Month | % of CTC |
|---|---|---|---|---|
₹5 LPA Entry level / Fresher | ₹38,164 | ₹0 (zero) | ₹35,464 | 64% |
₹8 LPA Junior / 2–4 years experience | ₹61,063 | ₹0 (zero) | ₹56,863 | 71% |
₹10 LPA Mid-level / 3–6 years experience | ₹76,329 | ₹0 (zero) | ₹71,129 | 71% |
₹12 LPA Senior / 5–8 years experience | ₹91,595 | ₹0 (zero) | ₹85,395 | 71% |
₹15 LPA Senior / Team Lead | ₹1,14,494 | ₹6,486 | ₹1,00,308 | 67% |
₹20 LPA Lead / Manager level | ₹1,52,658 | ₹13,119 | ₹1,29,339 | 65% |
₹25 LPA Senior Manager / Specialist | ₹1,90,823 | ₹21,989 | ₹1,56,134 | 62% |
₹30 LPA Director / Principal / VP level | ₹2,28,988 | ₹33,094 | ₹1,80,694 | 60% |
* Approximate. Actual figures depend on your exact salary structure, city (professional tax varies), employer PF policy, and variable pay. Use our calculator for exact numbers.
₹5 LPA In-Hand Salary Per Month
Entry level / Fresher₹5 LPA CTC Monthly Take-Home (New Regime, FY 2025-26)
₹35,464
per month · ₹4.3L annually
Income Tax
₹0
₹0
| Component | Monthly | Annual |
|---|---|---|
| CTC (Cost to Company) | — | ₹5,00,000 |
| − Employer PF (12% of Basic) | Not paid monthly | −₹30,000 |
| − Gratuity (4.81% of Basic) | Not paid monthly | −₹12,025 |
| = Gross Salary (monthly pay) | ₹38,164 | ₹4,57,975 |
| − Employee PF (12% of Basic) | −₹2,500 | −₹30,000 |
| − Professional Tax | −₹200 | −₹2,400 |
| − Income Tax TDS (new regime) | ₹0 | ₹0 |
| = In-Hand Salary | ₹35,464 | ₹4,25,568 |
Tax note: ₹0 — taxable income below ₹4L threshold, no tax. Zero income tax. The entire gap from CTC is PF and gratuity components.
Tax calculation (new regime): Gross annual ₹4,57,975 − Standard deduction ₹75,000 = Taxable income ₹3,82,975. Section 87A rebate (up to ₹60,000) reduces tax to ₹0.
Get your exact in-hand salary based on your actual salary structure
Use Salary Calculator →₹8 LPA In-Hand Salary Per Month
Junior / 2–4 years experience₹8 LPA CTC Monthly Take-Home (New Regime, FY 2025-26)
₹56,863
per month · ₹6.8L annually
Income Tax
₹0
₹0
| Component | Monthly | Annual |
|---|---|---|
| CTC (Cost to Company) | — | ₹8,00,000 |
| − Employer PF (12% of Basic) | Not paid monthly | −₹48,000 |
| − Gratuity (4.81% of Basic) | Not paid monthly | −₹19,240 |
| = Gross Salary (monthly pay) | ₹61,063 | ₹7,32,760 |
| − Employee PF (12% of Basic) | −₹4,000 | −₹48,000 |
| − Professional Tax | −₹200 | −₹2,400 |
| − Income Tax TDS (new regime) | ₹0 | ₹0 |
| = In-Hand Salary | ₹56,863 | ₹6,82,356 |
Tax note: ₹0 — Section 87A rebate covers full tax liability (income ≤ ₹12L). Zero income tax under new regime. 87A rebate fully covers your tax.
Tax calculation (new regime): Gross annual ₹7,32,760 − Standard deduction ₹75,000 = Taxable income ₹6,57,760. Section 87A rebate (up to ₹60,000) reduces tax to ₹0.
Get your exact in-hand salary based on your actual salary structure
Use Salary Calculator →₹10 LPA In-Hand Salary Per Month
Mid-level / 3–6 years experience₹10 LPA CTC Monthly Take-Home (New Regime, FY 2025-26)
₹71,129
per month · ₹8.5L annually
Income Tax
₹0
₹0
| Component | Monthly | Annual |
|---|---|---|
| CTC (Cost to Company) | — | ₹10,00,000 |
| − Employer PF (12% of Basic) | Not paid monthly | −₹60,000 |
| − Gratuity (4.81% of Basic) | Not paid monthly | −₹24,050 |
| = Gross Salary (monthly pay) | ₹76,329 | ₹9,15,950 |
| − Employee PF (12% of Basic) | −₹5,000 | −₹60,000 |
| − Professional Tax | −₹200 | −₹2,400 |
| − Income Tax TDS (new regime) | ₹0 | ₹0 |
| = In-Hand Salary | ₹71,129 | ₹8,53,548 |
Tax note: ₹0 — Section 87A rebate covers full tax (₹24,095 tax, rebate limit ₹60,000). Zero income tax. The 87A rebate covers your entire tax liability at ₹10 LPA.
Tax calculation (new regime): Gross annual ₹9,15,950 − Standard deduction ₹75,000 = Taxable income ₹8,40,950. Section 87A rebate (up to ₹60,000) reduces tax to ₹0.
Get your exact in-hand salary based on your actual salary structure
Use Salary Calculator →₹12 LPA In-Hand Salary Per Month
Senior / 5–8 years experience₹12 LPA CTC Monthly Take-Home (New Regime, FY 2025-26)
₹85,395
per month · ₹10.2L annually
Income Tax
₹0
₹0
| Component | Monthly | Annual |
|---|---|---|
| CTC (Cost to Company) | — | ₹12,00,000 |
| − Employer PF (12% of Basic) | Not paid monthly | −₹72,000 |
| − Gratuity (4.81% of Basic) | Not paid monthly | −₹28,860 |
| = Gross Salary (monthly pay) | ₹91,595 | ₹10,99,140 |
| − Employee PF (12% of Basic) | −₹6,000 | −₹72,000 |
| − Professional Tax | −₹200 | −₹2,400 |
| − Income Tax TDS (new regime) | ₹0 | ₹0 |
| = In-Hand Salary | ₹85,395 | ₹10,24,740 |
Tax note: ₹0 — income just above ₹12L threshold; 87A rebate still covers tax of ₹42,414. Still zero income tax. Your taxable income (₹10.24L) falls within the ₹12L rebate limit.
Tax calculation (new regime): Gross annual ₹10,99,140 − Standard deduction ₹75,000 = Taxable income ₹10,24,140. Section 87A rebate (up to ₹60,000) reduces tax to ₹0.
Get your exact in-hand salary based on your actual salary structure
Use Salary Calculator →₹15 LPA In-Hand Salary Per Month
Senior / Team Lead₹15 LPA CTC Monthly Take-Home (New Regime, FY 2025-26)
₹1,00,308
per month · ₹12L annually
Income Tax
₹6,486/mo
₹77,833/year
| Component | Monthly | Annual |
|---|---|---|
| CTC (Cost to Company) | — | ₹15,00,000 |
| − Employer PF (12% of Basic) | Not paid monthly | −₹90,000 |
| − Gratuity (4.81% of Basic) | Not paid monthly | −₹36,075 |
| = Gross Salary (monthly pay) | ₹1,14,494 | ₹13,73,925 |
| − Employee PF (12% of Basic) | −₹7,500 | −₹90,000 |
| − Professional Tax | −₹200 | −₹2,400 |
| − Income Tax TDS (new regime) | −₹6,486 | −₹77,833 |
| = In-Hand Salary | ₹1,00,308 | ₹12,03,696 |
Tax note: ₹77,833/year — taxable income crosses ₹12L; no 87A rebate available. Tax kicks in. At ₹15 LPA, you cross the ₹12L rebate threshold. In-hand is ~₹1 lakh/month.
Tax calculation (new regime): Gross annual ₹13,73,925 − Standard deduction ₹75,000 = Taxable income ₹12,98,925. Tax = ₹77,833 (includes 4% cess). Monthly TDS = ₹6,486.
Get your exact in-hand salary based on your actual salary structure
Use Salary Calculator →₹20 LPA In-Hand Salary Per Month
Lead / Manager level₹20 LPA CTC Monthly Take-Home (New Regime, FY 2025-26)
₹1,29,339
per month · ₹15.5L annually
Income Tax
₹13,119/mo
₹1,57,435/year
| Component | Monthly | Annual |
|---|---|---|
| CTC (Cost to Company) | — | ₹20,00,000 |
| − Employer PF (12% of Basic) | Not paid monthly | −₹1,20,000 |
| − Gratuity (4.81% of Basic) | Not paid monthly | −₹48,100 |
| = Gross Salary (monthly pay) | ₹1,52,658 | ₹18,31,900 |
| − Employee PF (12% of Basic) | −₹10,000 | −₹1,20,000 |
| − Professional Tax | −₹200 | −₹2,400 |
| − Income Tax TDS (new regime) | −₹13,119 | −₹1,57,435 |
| = In-Hand Salary | ₹1,29,339 | ₹15,52,068 |
Tax note: ₹1,57,435/year — effective tax rate ~8.5% on taxable income. New regime is better if deductions < ₹5.5L. Old regime wins with HRA + 80C + home loan.
Tax calculation (new regime): Gross annual ₹18,31,900 − Standard deduction ₹75,000 = Taxable income ₹17,56,900. Tax = ₹1,57,435 (includes 4% cess). Monthly TDS = ₹13,119.
Get your exact in-hand salary based on your actual salary structure
Use Salary Calculator →₹25 LPA In-Hand Salary Per Month
Senior Manager / Specialist₹25 LPA CTC Monthly Take-Home (New Regime, FY 2025-26)
₹1,56,134
per month · ₹18.7L annually
Income Tax
₹21,989/mo
₹2,63,868/year
| Component | Monthly | Annual |
|---|---|---|
| CTC (Cost to Company) | — | ₹25,00,000 |
| − Employer PF (12% of Basic) | Not paid monthly | −₹1,50,000 |
| − Gratuity (4.81% of Basic) | Not paid monthly | −₹60,125 |
| = Gross Salary (monthly pay) | ₹1,90,823 | ₹22,89,875 |
| − Employee PF (12% of Basic) | −₹12,500 | −₹1,50,000 |
| − Professional Tax | −₹200 | −₹2,400 |
| − Income Tax TDS (new regime) | −₹21,989 | −₹2,63,868 |
| = In-Hand Salary | ₹1,56,134 | ₹18,73,608 |
Tax note: ₹2,63,868/year — effective tax rate ~11.9% on taxable income. Evaluate carefully. With deductions above ₹7L, old regime may save more tax.
Tax calculation (new regime): Gross annual ₹22,89,875 − Standard deduction ₹75,000 = Taxable income ₹22,14,875. Tax = ₹2,63,868 (includes 4% cess). Monthly TDS = ₹21,989.
Get your exact in-hand salary based on your actual salary structure
Use Salary Calculator →₹30 LPA In-Hand Salary Per Month
Director / Principal / VP level₹30 LPA CTC Monthly Take-Home (New Regime, FY 2025-26)
₹1,80,694
per month · ₹21.7L annually
Income Tax
₹33,094/mo
₹3,97,129/year
| Component | Monthly | Annual |
|---|---|---|
| CTC (Cost to Company) | — | ₹30,00,000 |
| − Employer PF (12% of Basic) | Not paid monthly | −₹1,80,000 |
| − Gratuity (4.81% of Basic) | Not paid monthly | −₹72,150 |
| = Gross Salary (monthly pay) | ₹2,28,988 | ₹27,47,850 |
| − Employee PF (12% of Basic) | −₹15,000 | −₹1,80,000 |
| − Professional Tax | −₹200 | −₹2,400 |
| − Income Tax TDS (new regime) | −₹33,094 | −₹3,97,129 |
| = In-Hand Salary | ₹1,80,694 | ₹21,68,328 |
Tax note: ₹3,97,129/year — effective tax rate ~14.9% on taxable income. Tax is significant now. Old regime helps if you have large HRA + home loan interest.
Tax calculation (new regime): Gross annual ₹27,47,850 − Standard deduction ₹75,000 = Taxable income ₹26,72,850. Tax = ₹3,97,129 (includes 4% cess). Monthly TDS = ₹33,094.
Get your exact in-hand salary based on your actual salary structure
Use Salary Calculator →How to Increase Your In-Hand Salary — 5 Proven Ways
01
Choose the right tax regime
For income up to ₹12.75 lakh: new regime wins — zero tax. For ₹15L+: compare both regimes based on your deductions. If your HRA + 80C + home loan exceeds ₹3.75L at ₹15L income, old regime saves more. Use our salary calculator to compare.
02
Maximize employer NPS contribution (both regimes)
Ask your employer to contribute to NPS under Section 80CCD(2) — up to 14% of basic in new regime, 10% in old regime. This reduces your taxable income in BOTH regimes, unlike most other deductions. A ₹10,000/month employer NPS contribution can save ₹37,440/year in taxes at ₹20 LPA.
03
Negotiate fixed pay over variable pay
Variable pay (15–30% of CTC) is not paid monthly — it comes annually or quarterly after performance review. Always negotiate your "fixed CTC" separately. A ₹20 LPA offer with 20% variable (₹4L) means your fixed monthly pay is equivalent to ₹16 LPA. Compare fixed pay, not total CTC.
04
Use Flexible Benefit Plan (FBP) components
Many companies offer a Flexible Benefit Plan where you can allocate part of your salary to: Meal coupons (Sodexo/Zeta) — up to ₹2,200/month tax-free; Fuel reimbursement — up to ₹1,800/month; Internet/phone bills — up to ₹2,000/month; LTA — once in 2 years. Together, these can save ₹8,000–12,000/year in taxes.
05
Understand and negotiate PF structure
Employee PF is 12% of Basic. If your company calculates PF on actual basic (not the ₹15,000 ceiling), a ₹50,000 basic means ₹6,000/month goes to PF instead of ₹1,800. While PF builds long-term savings, it reduces monthly take-home. Some companies allow opting for ₹1,800 (minimum ceiling) PF — check if your company allows this.
Frequently Asked Questions
What is 10 LPA in hand salary per month?
For ₹10 LPA CTC with standard structure (50% basic, new tax regime, FY 2025-26), the monthly in-hand salary is approximately ₹71,129. Under the new tax regime, you pay zero income tax at ₹10 LPA — the Section 87A rebate covers your entire tax liability. Monthly deductions are only Employee PF (₹5,000) and Professional Tax (₹200).
Is 10 LPA a good salary in India?
Yes, ₹10 LPA is a solid salary in India for professionals with 3–6 years of experience. It puts you in the top 5% of Indian earners. With a monthly in-hand of ₹71,000, you can maintain a comfortable lifestyle in most Indian cities, save ₹15,000–20,000/month, and build meaningful investments.
What is 12 LPA in hand salary per month?
For ₹12 LPA CTC under the new tax regime FY 2025-26, the monthly in-hand salary is approximately ₹85,395. Interestingly, even at ₹12 LPA, your taxable income stays below ₹12 lakh (due to PF and gratuity reducing CTC), so you still pay zero income tax under the new regime.
What is 15 LPA in hand salary per month?
For ₹15 LPA CTC under the new tax regime FY 2025-26, the monthly in-hand salary is approximately ₹1,00,308. At ₹15 LPA, your taxable income crosses the ₹12 lakh rebate limit, so income tax applies — approximately ₹6,486/month in TDS (₹77,833 annual). This is when tax planning becomes important.
What is 20 LPA in hand salary per month?
For ₹20 LPA CTC under the new tax regime FY 2025-26, the monthly in-hand salary is approximately ₹1,29,339. Monthly deductions include Employee PF (₹10,000), Professional Tax (₹200), and TDS (₹13,119). At ₹20 LPA, new vs old tax regime comparison becomes important — choose based on your deductions.
What is 25 LPA in hand salary per month?
For ₹25 LPA CTC under the new tax regime FY 2025-26, the monthly in-hand salary is approximately ₹1,56,134. The effective income tax rate at ₹25 LPA is approximately 11.9% of taxable income. Annual TDS is ₹2,63,868 (₹21,989/month).
Does professional tax apply to all states?
No. Professional Tax varies by state and is not applicable in all states. States that charge Professional Tax include Maharashtra (₹200/month, ₹300 in February = ₹2,500/year), Karnataka (₹200/month = ₹2,400/year), West Bengal, Andhra Pradesh, Tamil Nadu, Gujarat, and a few others. States like Delhi, Haryana, Rajasthan, Uttar Pradesh, and Himachal Pradesh do NOT levy Professional Tax.
Can I reduce Employee PF deduction to increase take-home?
Technically, statutory PF deduction is required if your basic salary is above ₹15,000/month. However, many companies offer an option to cap PF contribution at the statutory minimum (12% of ₹15,000 = ₹1,800/month) instead of 12% of your actual basic salary. If your basic is ₹50,000, this saves ₹4,200/month (₹50,400/year) in mandatory PF deduction, increasing take-home by that amount. Note: lower PF means lower retirement corpus and potentially lower gratuity.
Key Takeaways
✓In-hand salary is 60–75% of CTC — not the full CTC divided by 12
✓Up to ₹12.75 LPA: zero income tax under new tax regime (87A rebate)
✓Employer PF + Gratuity reduce CTC to gross salary before you even see it
✓Employee PF (12% of Basic) and Professional Tax (₹200/month) are deducted monthly
✓Tax kicks in meaningfully only above ₹15 LPA (taxable income > ₹12L)
✓Variable pay is NOT monthly — negotiate on Fixed CTC first
✓Employer NPS saves tax in both regimes — ask your employer
✓Professional Tax varies by state — Delhi, Haryana pay ₹0
Related Free Tools
Disclaimer: All salary figures are approximate estimates based on a standard salary structure (Basic = 50% of CTC) and new tax regime for FY 2025-26. Actual in-hand salary depends on your specific salary breakup, employer PF policy, city of residence (professional tax varies), variable pay structure, and investment declarations. Always verify with your HR or payroll department. Tax calculations are based on Income Tax Act FY 2025-26 provisions. Updated March 2026.