CTC to In Converter 2026 | Free Online Tool

CTC (Cost to Company) is the total amount an employer spends on an employee annually — it includes your basic salary, allowances, employer's PF contribution (12% of basic), gratuity (4.81% of basic), health insurance, and other benefits. Your in-hand (take-home) salary is what actually gets credited to your bank account after deducting employee PF, professional tax, and income tax. For a typical fresher, in-hand salary is usually 70–80% of CTC.

For a ₹12 LPA CTC with standard structure (40% basic, no variable pay, new tax regime), monthly in-hand is approximately ₹82,000–₹88,000. The main deductions are employee PF (~₹1,800/mo), professional tax (₹200/mo), and income tax (~₹5,000–₹7,000/mo at this bracket under the new regime).

PF has two parts. Employer PF (12% of basic) is already included inside your CTC — it never comes to you as salary. Employee PF (another 12% of basic, capped at ₹1,800/mo) is deducted FROM your gross salary before it reaches your account. So PF effectively reduces your take-home twice — once by being baked into CTC, and once as a deduction.

For most freshers earning under ₹10–12 LPA with minimal investments or deductions, the new tax regime is better because of lower slab rates and a ₹75,000 standard deduction. The old regime benefits students who have significant 80C investments (PPF, ELSS), HRA exemption, and home loan interest. For first jobs, new regime typically results in higher in-hand pay.

Gratuity = (Basic Salary × 15 × Years of Service) ÷ 26. In a CTC offer letter, employers show it as 4.81% of annual basic salary as a provision — but you only actually receive gratuity after completing 5 years of continuous service. So while it's shown in your CTC, it doesn't come to you as monthly salary at the time of joining.