Ginti India

CTC to In-Hand Salary Calculator (New Labour Codes)

Enter your CTC and salary structure to see your monthly take-home before and after the labour codes, with every deduction shown.

Annual CTC

Rs.

Basic + DA (% of CTC)

HRA (% of basic)

Variable pay in the CTC (Rs. a year)

Rs.

Professional tax (Rs. a year)

PF is worked out on

Gratuity is part of the CTC

Rs. 1,05,915 a year is added to your wages for PF and gratuity. In-hand pay falls by Rs. 2,543 a month, while Rs. 30,512 a year more goes into your PF and gratuity.

Before 21 Nov 2025

PF and gratuity on basic + DA only

In-hand each month

Rs. 88,269

Rs. 10,59,223 a year after tax

Wages for PF and gratuity: Rs. 40,000 a month
Your PF: Rs. 4,800 a month
Employer PF: Rs. 4,800 a month
Special allowance: Rs. 33,277 a month
Gratuity earned: Rs. 23,077 a year
Income tax: Rs. 0 a year

Under the labour codes

Wages topped up to half your pay where needed

In-hand each month

Rs. 85,726

Rs. 10,28,711 a year after tax

Wages for PF and gratuity: Rs. 48,826 a month
Your PF: Rs. 5,859 a month
Employer PF: Rs. 5,859 a month
Special allowance: Rs. 31,793 a month
Gratuity earned: Rs. 28,169 a year
Income tax: Rs. 0 a year

What you entered

CTC: Rs. 12,00,000Basic + DA: 40%HRA: 50% of basicPF on: full wages

1
Basic + DA
Rs. 12,00,000 × 40%= Rs. 4,80,000
2
HRA
Rs. 4,80,000 × 50%= Rs. 2,40,000
3
Remuneration for the 50% test: the CTC less gratuity, with employer PF left in (ministry FAQ, 16 Mar 2026)
Rs. 12,00,000 − Rs. 28,169= Rs. 11,71,831
4
Wages for PF and gratuity: basic + DA, or half the remuneration if that is more
larger of Rs. 4,80,000 and Rs. 11,71,831 ÷ 2= Rs. 5,85,915 (Rs. 1,05,915 added back)
5
PF, 12% each side, on the full wages
12% × Rs. 5,85,915= Rs. 70,310 a year each
6
Gratuity earned in the year: 15 days' wages, a day being a month's wages ÷ 26
Rs. 5,85,915 ÷ 12 ÷ 26 × 15= Rs. 28,169
7
Special allowance: what is left of the CTC
Rs. 12,00,000 − Rs. 4,80,000 − Rs. 2,40,000 − Rs. 70,310 − Rs. 28,169= Rs. 3,81,521
8
Income tax, new regime, on the fixed pay (Rs. 75,000 standard deduction, 87A rebate, 4% cess)
tax on Rs. 11,01,521= Rs. 0
9
In-hand each month: fixed pay less your PF, professional tax and income tax, over 12
(Rs. 11,01,521 − Rs. 70,310 − Rs. 2,500 − Rs. 0) ÷ 12= Rs. 85,726
10
Change from the old structure, where PF and gratuity used basic + DA only
Rs. 85,726 − Rs. 88,269= −Rs. 2,543 a month

Result

In-hand each month: Rs. 85,726

The CTC is held at Rs. 12,00,000, so any rise in PF or gratuity comes out of the special allowance. Tax is the new regime for FY 2026-27. ESI and statutory bonus, which apply only to wages up to Rs. 21,000 a month, are left out.

In-hand pay at common CTCs, before and under the labour codes

Monthly take-home for a structure with basic + DA at 40% of CTC, HRA at 50% of basic, gratuity inside the CTC, no variable pay, Rs. 2,500 professional tax and new-regime tax for FY 2026-27. The CTC is held fixed, so higher PF and gratuity come out of the special allowance.

Annual CTC	In-hand before (PF on full basic)	In-hand under the codes	Change a month	Change with PF capped at Rs. 15,000
Rs. 6,00,000	Rs. 44,030	Rs. 42,759	-Rs. 1,271	-Rs. 212
Rs. 8,00,000	Rs. 58,776	Rs. 57,081	-Rs. 1,695	-Rs. 283
Rs. 10,00,000	Rs. 73,522	Rs. 71,404	-Rs. 2,119	-Rs. 354
Rs. 12,00,000	Rs. 88,269	Rs. 85,726	-Rs. 2,543	-Rs. 424
Rs. 15,00,000	Rs. 1,03,574	Rs. 1,00,685	-Rs. 2,889	-Rs. 448
Rs. 20,00,000	Rs. 1,33,551	Rs. 1,29,827	-Rs. 3,723	-Rs. 560
Rs. 30,00,000	Rs. 1,86,578	Rs. 1,81,378	-Rs. 5,200	-Rs. 730

With basic at 40%, the 50% rule adds about a fifth more to wages for PF and gratuity. Where PF is 12% of the full basic, both your PF and the employer's rise, and both come out of a fixed CTC, which is the fall in the third column. Where PF is capped at Rs. 15,000 of wages, only the higher gratuity counted inside the CTC changes, so the fall is small. A structure with basic + DA already at half the pay changes by nothing. The money that leaves take-home goes into your PF and gratuity.

The 50% rule in one line

Under section 2(y) of the Code on Wages, in force since 21 November 2025, wages are basic pay, DA and any retaining allowance. HRA, conveyance, employer PF, overtime, commission and the other allowances are left out, but only up to half of your remuneration; anything beyond half is added back to wages. The Labour Ministry's FAQs say employer PF counts in remuneration and gratuity, ESI and performance-linked pay do not. Because employer PF sits on both sides of the test, it works out as: wages are the larger of basic + DA and half of (CTC − variable pay − gratuity). On a Rs. 12 lakh CTC with basic at 40%, wages for PF and gratuity rise from Rs. 4.8 lakh to about Rs. 5.86 lakh a year.

Why the ministry and the news calculators disagree

Both are right, for different salaries. If your PF is worked out on the Rs. 15,000 a month wage ceiling, it stays Rs. 1,800 a month however much is added back, so take-home barely moves; that is the Labour Ministry's point. If your employer deducts 12% of your full basic, the higher wage figure raises both your PF and the employer's, and with the CTC unchanged both come out of your pay. On a Rs. 12 lakh CTC with basic at 40% that is about Rs. 2,543 a month less in hand, against Rs. 424 less with the ceiling. The money isn't lost: about Rs. 30,500 a year more goes into your PF and gratuity.

Frequently asked questions

Will my take-home salary fall under the new labour codes?

Only if your basic + DA is less than half your pay and your employer keeps the CTC the same. How much depends on PF: with PF on full basic, a Rs. 12 lakh CTC at 40% basic loses about Rs. 2,543 a month; with PF capped at Rs. 15,000 of wages it loses about Rs. 424, all of it from the higher gratuity counted inside the CTC. If basic + DA is already half your pay or more, nothing changes.

What counts as wages under the Code on Wages?

Basic pay, dearness allowance and retaining allowance. Bonus, the value of housing and amenities, employer PF and pension contributions, conveyance and travel concessions, special-expense reimbursements, HRA, awards, overtime, commission, gratuity and retrenchment compensation are excluded, but the first nine of these (up to commission) may make up at most half of your remuneration. The ministry's FAQs add that performance incentives, ESOPs and reimbursements are not wages.

Is PF compulsory on my full basic salary now?

No. PF is still due on wages up to the Rs. 15,000 a month ceiling, and contributing on more is voluntary, by agreement between you and your employer. Many employers already deduct 12% of the full basic, and for them the labour codes raise the PF amount whenever wages are topped up to half your pay.

When did the labour codes come into force?

On 21 November 2025, for all four codes: Wages, Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions. The Labour Ministry's FAQs say the new definition of wages, and gratuity based on it, apply from that date. Fixed-term employees now qualify for gratuity after one year of service.

Does this calculator work out income tax?

Yes, under the new regime for FY 2026-27: the Rs. 75,000 standard deduction, the slabs from Rs. 4 lakh, the section 87A rebate that clears tax up to Rs. 12 lakh of taxable income, marginal relief just above it, and 4% cess. HRA exemption and professional tax are not deductible in the new regime. For the old regime, use the income tax calculator.