ToolkitBeeHow to use
- Enter your yearly CTC from the offer letter.
- Enter basic salary as a % of CTC — under the new labour codes it is usually at least 50%.
- Choose how your company calculates PF, and whether gratuity is part of CTC.
- Enter your state's professional tax (₹200 a month in many states; 0 in states without it).
Formula
Gross salary = CTC − employer PF − gratuity (if included).
In-hand = gross − your PF − professional tax − income tax.
PF is 12% of basic from both you and the employer (capped at 12% of ₹15,000 = ₹1,800 a month if chosen). Income tax uses the new regime with the ₹75,000 standard deduction and 4% cess.
Frequently asked questions
Why is my in-hand salary so much lower than CTC?
CTC includes the employer's PF and gratuity, which you do not get every month, and your own PF, professional tax and income tax are deducted from your salary.
Why 50% basic?
Under the labour codes in force from November 2025, basic pay plus DA should generally be at least 50% of total pay. A higher basic means more PF and gratuity, but slightly less in-hand pay.
Does it use the old tax regime?
No, it uses the new regime, which is the default. Use the Income Tax Calculator to compare both regimes with your deductions.