📐 Formula Used
In-Hand = Gross Salary – Employee PF – Professional Tax – TDS Gross = Basic + HRA + Allowances Employee PF = 12% of Basic (max ₹1,800/month)
Frequently Asked Questions
What is CTC?
CTC (Cost to Company) is the total annual expense a company incurs on an employee, including basic salary, HRA, allowances, PF contributions, gratuity, and other benefits.
How is in-hand salary calculated?
In-hand = CTC – Employer PF – Gratuity provision – Employee PF – Professional Tax – Income Tax (TDS)
What is the PF deduction?
Employee PF = 12% of Basic Salary (capped at ₹1,800/month if basic exceeds ₹15,000). Employer also contributes 12% (partially to EPS).
What is professional tax?
Professional tax is a state-level tax deducted monthly from salary. It varies by state (max ₹200/month in most states, ₹2,500/year cap).