One of the most confusing aspects of job offers in India is understanding what your actual take-home salary will be. Companies advertise CTC (Cost to Company), but what you receive in your bank account every month is significantly different after deductions for PF, professional tax, income tax, and other components.

These scenario-based examples show you exactly how different CTC packages translate to monthly in-hand salary. Each scenario uses standard salary structures commonly found in Indian companies, though your actual numbers may vary based on your company's policies, the city you work in, and your chosen tax regime.

These examples help you evaluate job offers, plan your monthly budget, and understand where your money goes between CTC and take-home pay.

Browse Salary Scenarios by CTC

Available Scenarios

What Affects Your In-Hand Salary?

Key Factors

  • Different companies split CTC differently between fixed and variable components
  • Professional tax varies by state (₹200 in most metros, ₹0 in some states)
  • Old regime with deductions vs new regime with lower rates
  • Mandatory 12% of basic, capped at ₹1,800/month for salaries above ₹15,000 basic
  • Gratuity and bonus are annual or lump-sum components, not part of monthly take-home

Frequently Asked Questions

Why is in-hand salary so much lower than CTC?

CTC includes employer PF (12% of basic), gratuity provision (4.81% of basic), variable bonus, and sometimes insurance premiums - none of which reach your bank account monthly. After also subtracting employee PF, professional tax, and income tax, take-home is typically 60–75% of CTC for salaries under ₹20 LPA, dropping to 50–60% above ₹50 LPA where the 30% tax slab dominates.

Should I pick the old or new tax regime?

The new regime (default from FY 2023–24) wins unless you claim more than roughly ₹3.75 lakh in deductions - typically HRA, 80C investments, home loan interest, and 80D health insurance combined. Salaried employees with rent in metros or active home loans usually still benefit from the old regime; everyone else should default to new.

Are these scenarios accurate for my company?

They use a standard salary structure (basic 40–50% of CTC, HRA 40–50% of basic, special allowance balancing). Companies with higher basic, lower HRA, or large variable components will produce different numbers. Use the scenario as a baseline, then refine with the salary calculator using your offer letter's actual breakup.

Does the city I work in change my take-home?

Yes - HRA exemption is 50% of basic in metros (Mumbai, Delhi, Kolkata, Chennai) and 40% elsewhere. Professional tax also varies: ₹2,500 per year in Maharashtra and Karnataka, ₹0 in Delhi and Punjab. The same CTC can produce ₹5,000–₹15,000 different annual take-home between cities.

Want Your Exact Numbers Based on Your Details?

Every company structures salary differently. Use our calculator to get precise in-hand salary based on your specific CTC breakdown and tax situation.

Use Salary Calculator