In-Hand Salary Calculator

CTC vs In-Hand Salary

Cost to Company (CTC) is the total amount an employer spends on an employee. However, the amount credited to the bank account (In-Hand Salary) is often lower due to various deductions like PF, Professional Tax, and Income Tax (TDS).

Common Deductions

  • EPF: 12% of Basic + DA (Employee Share)
  • Professional Tax: ~?200/month (varies)
  • TDS: Income Tax deducted monthly

Non-Monthly Components

  • Performance Bonus (Yearly/Quarterly)
  • Gratuity (Part of CTC but paid on exit)
  • Employer PF Contribution (Part of CTC but not deducted from in-hand)

Frequently Asked Questions

CTC includes employer's provident fund contribution, gratuity provision, and variable bonuses which are not paid monthly, in addition to standard deductions.
It is a tax levied by the state government on salaried individuals. It is usually around ?200 per month in states like Maharashtra, Karnataka, etc.