Placement Salary Calculator (CTC to In-Hand)
Estimate your net monthly take-home salary from your corporate placement package. Breaks down PF, tax, and variable components.
Annual Breakdown
Package Details
Enter details from your offer letter / placement criteria
Variable pay is typically paid at the end of the year based on performance benchmarks.
CTC vs In-Hand Salary: What is the Difference?
For many engineering graduates securing placements during campus drives, the Cost to Company (CTC) listed on offer letters can be misleading. CTC is the total expenditure an employer incurs on hiring and maintaining an employee. It is not the cash salary you receive in your bank account every month.
Your monthly take-home (in-hand) salary is calculated by subtracting variable payouts, employer/employee retirals (Provident Fund, Gratuity), insurance premiums, professional tax, and income tax (TDS) from the CTC.
Standard Salary Components Explained
1. Basic Salary
This is the core fixed component of your salary package, usually comprising 40% to 50% of the total fixed salary. Basic salary is fully taxable and serves as the baseline for calculating other values like EPF and Gratuity.
2. House Rent Allowance (HRA)
Allowance provided to cover house rental expenses. Under the Old Tax Regime, HRA is partially exempt from tax based on rent paid, city of residence, and basic pay.
3. Employee Provident Fund (EPF)
A statutory retiral saving. Typically, both the employee and employer contribute 12% of the basic salary towards the Employees' Provident Fund Organisation (EPFO).
4. Performance / Variable Bonus
A performance-linked component. This part of the CTC is only paid once or twice a year, depending on the individual's performance appraisal score and the organization's yearly profit margins.
New Income Tax Regime Slabs (Simplified)
Our calculator utilizes the simplified New Tax Regime slabs to estimate TDS deductions. Under the new regime:
- Up to ₹3,000,000 (3 Lakhs): 0% Tax
- ₹300,001 to ₹700,000: 5% Tax
- ₹700,001 to ₹1,000,000: 10% Tax
- ₹1,000,001 to ₹1,200,000: 15% Tax
- ₹1,200,001 to ₹1,500,000: 20% Tax
- Above ₹1,500,000: 30% Tax
A standard deduction of ₹75,000 is automatically deducted from your fixed gross base, and tax rebates protect individuals whose total taxable income does not cross ₹700,000.