CTC is the employer's stated cost of your compensation package. Gross salary is your earnings before employee deductions for the relevant period. In-hand salary is what reaches your account after those deductions. A ₹6 lakh CTC does not automatically mean a monthly bank credit of ₹50,000.
In-hand salary calculator
Reconcile monthly gross earnings with the actual employee deductions shown in your offer or payslip.
Gross minus entered deductions equals net salary; reimbursements are shown separately in the bank-credit estimate. This does not calculate tax or infer gross pay from CTC. Enter payroll-confirmed deductions. Employer PF, insurance and gratuity provisions must not be deducted twice.
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Sort the offer into three buckets
First identify regular cash earnings: basic pay, applicable allowances and other fixed earnings. Next list items included in CTC that may not be monthly cash, such as employer PF provision, gratuity provision, insurance cost or a performance-linked payment. Finally list employee deductions, including actual employee PF, tax deducted where applicable and other authorised deductions.
An illustrative calculation
Suppose a fictional offer has annual CTC of ₹6,00,000. Its schedule includes ₹5,40,000 regular annual gross earnings and ₹60,000 of employer contributions, provisions and other costs. Monthly gross is then ₹45,000, not ₹50,000. If that month's employee deductions total ₹3,500, the illustrative bank credit is ₹41,500. These numbers are invented to explain the method; they are not a tax calculation, statutory wage breakup or quotation from an employer.
Why two identical CTC figures can pay differently
A larger variable component can reduce guaranteed monthly cash. Reimbursements may require bills. Shift or field allowances can depend on actual duty. A joining bonus may have recovery conditions. In a pharma sales role, expense reimbursement should be separated from earnings: money repaying a legitimate business expense is not automatically a raise in disposable salary.
Ask for a sample monthly calculation under your joining date, location and selected benefits. Check how partial months, unpaid leave and incentive cycles work. Tax outcomes depend on applicable law and your circumstances; a fixed in-hand estimate without those details is unreliable. The Income Tax Department's salary-income material is an official starting point for tax-related components.
Avoid the double-subtraction mistake
If employer PF is already outside the regular gross figure, do not subtract it again as if it were an employee payslip deduction. Equally, do not add an employer's gratuity provision to your monthly bank credit. Separate accounting lines before comparing offers.
Take the offer breakup, joining terms and first payslip to payroll if the numbers do not reconcile. Ask for a component-by-component explanation. That is more useful than comparing only the biggest annual figure in two recruitment messages.
Prepared 1 November 2026 using the linked official sources. General education; product approval, fees, coverage and statutory entitlements depend on current terms and your circumstances. Illustrations are not personalised financial or legal advice.