Salary Configuration
Standard Gratuity in India is calculated as (Basic × 15/26), which is approx 4.81%.
Monthly In-Hand Salary
₹0Annual In-Hand Pay
₹0
Monthly Deductions (incl. Tax)
₹0
TDS (Income Tax) Impact
Rate: 0%Other Mandatory Contributions
What is Take Home Salary?
Take-home salary (or net salary) is the actual amount of money an employee receives in their bank account every month after all mandatory and voluntary deductions are removed from the Gross Salary. While the CTC represents the total expense of the company, the take-home is what defines your actual monthly budget.
Difference Between CTC and In-Hand Salary
CTC (Cost to Company) includes everything the employer pays for you, including components you don't see in cash, such as the employer's PF contribution, Gratuity, and insurance premiums. In-hand salary, on the other hand, is your Gross Pay minus statutory deductions like Income Tax (TDS), Employee PF, and Professional Tax.
Common Salary Deductions in India
Provident Fund (PF)
Typically 12% of your Basic Salary + DA is deducted as your contribution to the EPF. This is a vital part of your Retirement Planning.
Gratuity Portion
A standard 4.81% of Basic Salary is often listed in the CTC. This is calculated using the 15/26 day rule under the Gratuity Act.
Income Tax (TDS)
Calculated based on the slab rates of your chosen regime (Old/New). Use our Income Tax Calculator for a deep dive.
Professional Tax
A state-level tax, usually capped at ₹2,500 per year (approx ₹200/month), deducted from the income of all earning professionals.
Frequently Asked Questions
How is in-hand salary calculated?
Is 4.81% the standard gratuity rate?
Does Gratuity reduce my monthly salary?
Related Financial Tools
Disclaimer
Calculations are based on general income tax rules for FY 2025-26. Standard Gratuity accrual (4.81%) is assumed based on common Indian corporate practices. Always refer to your company HR's Annexure-A for final take-home figures.Last Updated: March 2026