Turn a CTC into the amount that actually reaches the bank, or a salary into what the employee really costs your company. Indian statutory rules, both tax regimes, working shown.
Indian salary arithmetic runs in two directions, and confusing them is why two people can look at the same offer letter and disagree about what it pays. CTC is what the employer spends. Gross is what appears at the top of the payslip. Take-home is what reaches the bank. Between each pair sits a set of statutory contributions, and this page walks all of them.
CTC includes money that never touches your payslip: the employer's own EPF contribution, its ESI contribution where applicable, and the gratuity it sets aside each month. Subtract those and you have gross salary. From gross, four things are withheld — your 12% EPF, ESI at 0.75% if you earn up to ₹21,000 a month, professional tax as notified by your state, and TDS on your income tax liability. What is left is take-home.
Going the other way answers a different question: what does this hire actually cost? Employer EPF is 12% of PF wages, but it splits — 8.33% to the pension scheme and the rest to the PF account — and EDLI and administration charges sit on top. Add employer ESI at 3.25%, the gratuity provision at 4.81% of basic, and statutory bonus where it applies. For a low-wage role all of that together is a material percentage on top of salary; for a senior one the EPF ceiling caps it and the percentage falls away.
Every figure below comes from one configuration file, and the calculator above reads the same file — so what you see here is exactly what was applied to your numbers.
| Component | Employee | Employer | Wage base |
|---|---|---|---|
| EPF (provident fund) | 12% | 12% | Basic + DA, ceiling ₹15,000 |
| EPS (pension), within the employer's 12% | — | 8.33% | Capped at ₹15,000 |
| EDLI (life insurance) | — | 0.50% | Capped at ₹15,000 |
| EPF administration charges | — | 0.50% | PF wages, min ₹500 per establishment |
| ESI | 0.75% | 3.25% | Gross wages up to ₹21,000 a month |
| Gratuity provision | — | 4.81% of basic | 15 / 26 of a month's wages per year of service |
| Statutory bonus | — | 8.33% minimum | Eligible up to ₹21,000, computed on ₹7,000 |
| Regime | Slab | Rate |
|---|---|---|
| New regime (default) Standard deduction ₹75,000 | ₹0 – ₹400,000 | 0% |
| ₹400,000 – ₹800,000 | 5% | |
| ₹800,000 – ₹1,200,000 | 10% | |
| ₹1,200,000 – ₹1,600,000 | 15% | |
| ₹1,600,000 – ₹2,000,000 | 20% | |
| ₹2,000,000 – ₹2,400,000 | 25% | |
| Above ₹2,400,000 | 30% | |
| Old regime (with deductions) Standard deduction ₹50,000 | ₹0 – ₹250,000 | 0% |
| ₹250,000 – ₹500,000 | 5% | |
| ₹500,000 – ₹1,000,000 | 20% | |
| Above ₹1,000,000 | 30% |
A 4% health and education cess applies on top of the tax and any surcharge, under both regimes. The section 87A rebate removes the tax entirely below ₹1,200,000 of taxable income under the new regime and ₹500,000 under the old one, and marginal relief stops a small raise across the new regime's threshold from costing more in tax than the raise itself.
| State | Bands on monthly gross |
|---|---|
| Karnataka | above ₹24,999: ₹200 |
| Maharashtra | up to ₹10,000: ₹175, above ₹10,000: ₹200 |
| West Bengal | up to ₹15,000: ₹110, up to ₹25,000: ₹130, up to ₹40,000: ₹150, above ₹40,000: ₹200 |
| Tamil Nadu | up to ₹30,000: ₹135, up to ₹45,000: ₹315, up to ₹60,000: ₹690, up to ₹75,000: ₹1,025, above ₹75,000: ₹1,250 |
| Telangana | up to ₹20,000: ₹150, above ₹20,000: ₹200 |
| Andhra Pradesh | up to ₹20,000: ₹150, above ₹20,000: ₹200 |
| Gujarat | above ₹12,000: ₹200 |
| Madhya Pradesh | up to ₹25,000: ₹125, up to ₹33,333: ₹167, above ₹33,333: ₹208 |
| Odisha | up to ₹25,000: ₹125, above ₹25,000: ₹200 |
| Assam | up to ₹15,000: ₹150, up to ₹25,000: ₹180, above ₹25,000: ₹208 |
| Kerala | up to ₹2,999: ₹20, up to ₹4,999: ₹30, up to ₹7,499: ₹50, up to ₹9,999: ₹75, up to ₹12,499: ₹100, up to ₹16,666: ₹125, up to ₹20,833: ₹166, above ₹20,833: ₹208 |
Three separate things are happening. First, part of your CTC is employer-side money — its EPF contribution and your gratuity accrual — which is real value to you but never appears on a payslip. Second, your own EPF is saved rather than paid out. Third, income tax is withheld monthly as TDS. On a ₹12 lakh package the gap between CTC and take-home is typically 6–8% before tax, and considerably more once tax bites.
It depends entirely on how much you actually claim. The new regime has lower rates and a larger standard deduction but disallows HRA exemption, 80C, 80D and home loan interest. The old regime keeps all of those. Enter your real rent and deductions in the panel above and the calculator costs both regimes side by side, so the comparison is on your numbers rather than a rule of thumb.
That is the statutory wage ceiling: an employer must contribute 12% on basic wages up to ₹15,000, which caps the mandatory contribution at ₹1,800 a month. Many employers voluntarily contribute on the whole basic instead. Tick EPF on full basic if yours does — it raises both contributions and lowers your take-home while increasing what you save.
Usually one of four reasons: your employer structures allowances differently from the basic-plus-HRA-plus-special split assumed here; TDS is spread unevenly across the year as your declarations change; your state's professional tax has a quirk such as Maharashtra's higher February deduction; or components like LTA, conveyance and food allowance are itemised separately. This calculator gives you the shape of the number, not a substitute for your employer's payroll run.
Yes, and the gap is widest at lower wages. Below the ESI ceiling of ₹21,000 you are paying employer EPF, employer ESI, gratuity and statutory bonus, which together add a noticeable percentage to every rupee of salary. Above the EPF ceiling the statutory contributions stop growing, so the same add-ons become a much smaller share of a senior salary. The Employer cost tab shows the percentage for the figure you enter.
Yes. Every input is kept in the page's address, so copying the URL from your browser preserves the whole scenario. It is a convenient way to send a structure to a candidate or to compare two offers in separate tabs.
Rates last updated 26 September 2026, for financial year 2026-27. Statutory rates, wage ceilings, income tax slabs and state professional tax bands are all changed by government notification — a Union Budget or a state revision can move any of them, and a calculator that has not been reviewed since is quietly wrong. Check this date against the current financial year before relying on the output.
Results are estimates for planning, rounded to whole rupees, and are not tax or legal advice. Actual salary structures vary between employers, and your own payroll or a qualified tax adviser is the authority on your specific case. Professional tax is simplified for a normal month and leaves out state-specific exemptions.
Payroll by MoneyDash runs the same arithmetic across your whole organisation — payheads, salary structures, attendance and leave — and produces payslips, bank letters and reports from it. Free for up to 10 employees.