Understanding Your CTC vs. In-Hand Salary
When a company offers you a salary package, it is usually presented as a Cost to Company (CTC). However, the amount that is actually deposited into your bank account every month is known as the In-Hand Salary (or Net Salary). This calculator helps you bridge the gap between the two.
Standard Salary Components
- Basic Salary: The core of your salary, usually 40% to 50% of your CTC. EPF and Gratuity are calculated based on this.
- HRA (House Rent Allowance): Usually 40% or 50% of your Basic Salary, meant to cover rental living expenses.
- Special Allowances: The remaining balancing figure of your Gross Salary.
- EPF (Provident Fund): 12% of your Basic Salary is deducted from your Gross Pay (Employee Share). An equal 12% is paid by the employer (Employer Share), which is part of your CTC but not your Gross Pay.
*Note: This calculator estimates your structural salary breakdown. Exact Income Tax (TDS) depends on your specific investment declarations (like 80C) and tax regime chosen.