Why is the employer's PF contribution part of my CTC but not part of my take-home?

CTC means "Cost to Company" -- it includes everything the company spends on you, including its own 12% PF match, which goes straight into your PF account rather than your bank account. It's money that belongs to you (eventually, on withdrawal or retirement), but it never appears in a monthly salary credit, which is exactly why CTC always looks bigger than take-home.

What's the difference between "PF on Actual Basic" and the ₹15,000 ceiling option?

By law, employers are allowed to calculate the mandatory 12% PF contribution on either your actual Basic salary or a capped statutory wage base of ₹15,000/month, whichever the employer chooses -- capping at ₹15,000 (which most large private-sector employers do) means a smaller PF deduction and a correspondingly larger Special Allowance and take-home pay, compared to calculating PF on your full actual Basic.

Why do I have to enter my income tax manually instead of it being calculated?

Indian income tax depends on your chosen tax regime (old vs. new), applicable deductions (80C, HRA exemption, etc.), and other income sources -- it's genuinely too variable to derive purely from a CTC breakdown. This tool takes your own estimated annual TDS as an input so the take-home figure reflects your actual tax situation rather than a generic assumption.

Why does a higher Basic percentage sometimes mean lower take-home pay?

A higher Basic increases both HRA (a percentage of Basic) and the mandatory PF contribution (a percentage of the PF wage base, usually tied to Basic) -- more of your Fixed CTC gets redirected into PF, which is saved for later rather than paid out now, so a higher Basic percentage can mean a lower immediate take-home even though your total CTC hasn't changed.

In-Hand Salary (CTC to Take-Home) Calculator

Enter your annual CTC and salary structure to see how it breaks down — and what actually lands in your bank account each month.

How In-Hand Salary (CTC to Take-Home) Calculator Works

CTC (Cost to Company) is not what lands in your bank account -- it includes the employer's own contributions (like their share of PF) that never touch your paycheck, and it's reduced further by your own PF contribution, professional tax, and income tax. This calculator breaks a CTC figure down the way an Indian payroll department actually structures it, to show real monthly take-home pay.

Formula & Method

Fixed CTC (CTC minus any variable bonus, since bonus is typically paid separately) is split into Basic Salary (your chosen % of Fixed CTC), HRA (your chosen % of Basic), and Special Allowance (whatever remains after Basic, HRA, and the employer's PF contribution). Both employee and employer contribute 12% of the PF wage base to EPF by law -- this tool lets you choose whether that 12% applies to actual Basic or is capped at the statutory ₹15,000/month wage ceiling, which most large private employers use. Net take-home is Gross Salary (Basic + HRA + Special Allowance) minus your own employee PF contribution, monthly professional tax, and your estimated annual income tax (TDS).

Worked Example

With a ₹12,00,000 CTC (₹1,00,000 of it a bonus), 40% Basic, 50% HRA, PF on actual Basic, ₹200/month professional tax, and ₹60,000 estimated annual tax: Fixed CTC is ₹11,00,000, Basic is ₹4,40,000, HRA is ₹2,20,000, employer and employee PF are each ₹52,800, Special Allowance is ₹3,87,200, and Gross Salary comes to ₹10,47,200 -- landing at a net take-home of about ₹9,32,000/year, or roughly ₹77,667/month (plus the ₹1,00,000 bonus paid separately).

Frequently Asked Questions

Why is the employer's PF contribution part of my CTC but not part of my take-home?: CTC means "Cost to Company" -- it includes everything the company spends on you, including its own 12% PF match, which goes straight into your PF account rather than your bank account. It's money that belongs to you (eventually, on withdrawal or retirement), but it never appears in a monthly salary credit, which is exactly why CTC always looks bigger than take-home.
What's the difference between "PF on Actual Basic" and the ₹15,000 ceiling option?: By law, employers are allowed to calculate the mandatory 12% PF contribution on either your actual Basic salary or a capped statutory wage base of ₹15,000/month, whichever the employer chooses -- capping at ₹15,000 (which most large private-sector employers do) means a smaller PF deduction and a correspondingly larger Special Allowance and take-home pay, compared to calculating PF on your full actual Basic.
Why do I have to enter my income tax manually instead of it being calculated?: Indian income tax depends on your chosen tax regime (old vs. new), applicable deductions (80C, HRA exemption, etc.), and other income sources -- it's genuinely too variable to derive purely from a CTC breakdown. This tool takes your own estimated annual TDS as an input so the take-home figure reflects your actual tax situation rather than a generic assumption.
Why does a higher Basic percentage sometimes mean lower take-home pay?: A higher Basic increases both HRA (a percentage of Basic) and the mandatory PF contribution (a percentage of the PF wage base, usually tied to Basic) -- more of your Fixed CTC gets redirected into PF, which is saved for later rather than paid out now, so a higher Basic percentage can mean a lower immediate take-home even though your total CTC hasn't changed.

Annual CTC

Annual Bonus / Variable Pay

Basic Salary (% of Fixed CTC)

HRA (% of Basic)

Professional Tax (Monthly)

Estimated Annual Income Tax (TDS)

Both employer and employee contribute 12% of Basic to EPF — by law, employers may cap this contribution at the statutory wage ceiling of ₹15,000/month instead of actual Basic, which most large private employers do. Income tax is a direct estimate you provide (it depends on your regime, deductions, and exemptions) — use a dedicated income tax calculator for a precise figure.

— Net Take-Home (Monthly)