1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions from the Cost to Company (CTC). It's the net salary credited to your bank account each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Employer PF} \) — 12% of basic salary
• \( \text{Gratuity} \) — (Basic + DA) × 15/26 × years of service
• \( \text{Employee PF} \) — 12% of basic salary

3. Salary Components Explained

CTC (Cost to Company): Total cost employer spends on an employee annually.
Basic Salary: Core salary before any additions or deductions.
Provident Fund (PF): Retirement savings contribution (12% each from employee and employer).
Gratuity: Retirement benefit paid after 5 years of continuous service.
Income Tax: Tax deducted based on income tax slabs.
Professional Tax: State-level tax on employment.

4. Using the Calculator

Tips: Enter all values in INR/year. For accurate results, use your actual CTC, basic salary, and other deduction amounts from your salary slip.

5. Frequently Asked Questions (FAQ)

Q1: Why is in-hand salary less than CTC?
A: CTC includes all benefits and deductions. In-hand salary is after subtracting PF, taxes, and other deductions.

Q2: Is gratuity deducted from salary?
A: No, it's a liability for the employer but not deducted from monthly salary. It's paid when you leave after 5+ years.

Q3: Can I change my PF contribution?
A: Yes, you can opt for higher PF contribution (up to 100% of basic), but employer contribution remains 12%.

Q4: How is professional tax calculated?
A: It varies by state (typically ₹200-₹250/month), deducted from April to February (not March).

Q5: What's not included in this calculation?
A: Other deductions like health insurance, meal coupons, or special allowances may apply in some cases.