What is the difference between CTC and In-Hand salary?

CTC (Cost to Company) is the total annual cost incurred by the employer, including employer EPF, gratuity, and health insurance. In-hand salary is the actual net amount credited to your bank account after deducting non-cash benefits, employee EPF, professional tax, and income tax (TDS).

How much percentage of CTC is received as monthly in-hand salary?

In India, monthly in-hand salary is typically 70% to 85% of annual CTC divided by 12, depending on variable bonuses, employer retirals, and applicable income tax slabs.

Is employer EPF part of CTC in India?

Yes, most corporate CTC offers in India include the employer EPF contribution (12% of basic pay) as part of the total annual CTC package.

CTC Calculator 2026 (Cost to Company to In-Hand)

Convert annual Cost to Company (CTC) into exact monthly take-home salary, gross pay, employer retirals, and tax deductions.

Enter CTC Package Details

Annual CTC Offer (₹)

₹3 Lakhs₹50 Lakhs₹1 Crore

Basic Pay (% of CTC)Typically 40% to 50% of CTC in Indian corporate offers.50% (₹6,00,000/yr)

Employer EPF (12%) in CTCGratuity (4.81%) in CTC

Employer NPS (Sec 80CCD2) %0%

Group Insurance in CTC (₹/yr)

Variable Bonus in CTC (₹/yr)

Select Tax Regime

Estimated Net In-Hand Credit

₹84,563/ month

Annual In-Hand: ₹10,14,754 (84.6% of total CTC)

Gross Salary (Pre-Tax)₹90,763/mo₹10,89,154/yr

Income Tax (TDS)₹0Zero tax (Sec 87A)

Employee EPF (12%):-₹6,000/mo

Professional Tax (PT):-₹200/mo

Employer Retirals (EPF + Gratuity):₹8,404/mo

Complete Itemized CTC to In-Hand Structure Table

Salary Component	Category	Monthly (₹)	Annual (₹)
Basic Pay (50%)	Direct Salary	₹50,000	₹6,00,000
House Rent Allowance (HRA)	Direct Salary	₹25,000	₹3,00,000
Special / Flexible Allowance	Direct Salary	₹15,763	₹1,89,154
Employer EPF Contribution (12%)	Employer Retirals	₹6,000	₹72,000
Gratuity Provision (4.81%)	Employer Retirals	₹2,404	₹28,846
Group Health Insurance Premium	Non-Cash Benefits	₹833	₹10,000
Employee EPF Deduction (12%)	Deductions	-₹6,000	-₹72,000
Professional Tax (PT)	Deductions	-₹200	-₹2,400
Income Tax (TDS)	Deductions	-₹0	-₹0
Net Monthly In-Hand Credit		₹84,563	₹10,14,754

About the CTC Calculator

Cost to Company (CTC) is the total annual expense a business incurs to employ an individual in India. Many job seekers confuse Annual CTC with In-Hand Take-Home Salary. CTC includes non-cash benefits (group insurance), employer retirals (Employer EPF, Gratuity), and variable bonuses that are not credited directly to your monthly bank account.

CTC vs Gross Salary vs Net In-Hand

1. CTC (Cost to Company)

Total expense incurred by employer, including employer EPF, gratuity, and health insurance.

2. Gross Salary

Total direct salary before employee deductions: Basic + HRA + Special Allowance + Variable Pay.

3. Net In-Hand Salary

Actual credited amount in bank account after Employee EPF, Professional Tax, and Income Tax (TDS).

The CTC Conversion Formula

Gross Salary = CTC − (Employer EPF + Employer NPS + Gratuity + Insurance)

Net In-Hand = Gross Salary − (Employee EPF + Professional Tax + Income Tax TDS)

Authoritative References

Income Tax Department, Government of India: incometaxindia.gov.in
Employees’ Provident Fund Organisation (EPFO): epfindia.gov.in