In-Hand Salary Calculator — New Wage Code & PF | FY 2025-26
Enter your CTC and get your exact in-hand salary under the New Wage Code 2025-26. Compares 50% basic (new rule) vs your current basic, with old vs new tax regime breakdown.
Important Disclaimer
This Salary Calculator is based on the provisions of the Income Tax Act, 1961, incorporating the latest tax slabs for both the New Tax Regime (Section 115BAC) and the Old Tax Regime, along with statutory deductions such as EPF (Employees' Provident Fund), Professional Tax, and applicable rebates for FY 2025-26.
This tool is for illustrative purposes only. Actual salary calculations may vary based on company policies, individual circumstances, and tax regulations. Always consult your HR department or a qualified tax professional for accurate salary and tax calculations.
Salary Input
Enter your gross annual CTC and preferences
= Twelve Lakh Rupees
Your total cost to company package
New Wage Code effective from 21 November 2025 mandates minimum 50% basic pay
For full old-regime calculation beyond salary (other income, capital gains, deductions), use the income tax simulator.
Existing (old) basic in percentage
= Four Lakh Eighty Thousand Rupees
New Wage Code (effective Nov 2025) mandates minimum 50%
Corporate NPS deduction up to 14% of Salary (Basic + DA) under the New Tax Regime. Government: 14% in both regimes.
Old Rules (Pre-2025)
Basic: 40% of CTC = ₹4,80,000
₹90,192
Monthly In-Hand
New Wage Code 2025New
Basic: 50% of CTC = ₹6,00,000
₹87,792
Monthly In-Hand
Monthly In-Hand Difference
New Wage Code vs Old Rules
-₹2,400
Lower take-home per month
PF Calculation under New Wage Code: The 50% Basic Rule
The Code on Wages, 2019 (effective 21 November 2025) mandates that Basic salary must be at least 50% of gross CTC. Since EPF is calculated as 12% of Basic, a higher Basic means higher PF — and lower in-hand.
Basic ≥ 50% of CTC
Employee EPF = 12% × Basic
Employer EPF = 12% × Basic (not counted in your CTC in most companies)
Gratuity = (Basic × 15) ÷ 26 per year of service
In-hand = CTC − Employee EPF − Gratuity − Income Tax − Professional Tax
| Annual CTC | Old Basic (40%) | Old EPF/yr | New Basic (50%) | New EPF/yr |
|---|---|---|---|---|
| ₹6,00,000 | ₹2,40,000 | ₹28,800 | ₹3,00,000 | ₹36,000 |
| ₹10,00,000 | ₹4,00,000 | ₹48,000 | ₹5,00,000 | ₹60,000 |
| ₹15,00,000 | ₹6,00,000 | ₹72,000 | ₹7,50,000 | ₹90,000 |
| ₹20,00,000 | ₹8,00,000 | ₹96,000 | ₹10,00,000 | ₹1,20,000 |
Old Tax Regime vs New Tax Regime: Which Gives Higher In-Hand?
Estimated monthly in-hand comparison under New Wage Code (50% basic), new tax regime vs old tax regime. Old regime assumes standard 80C (₹1.5L), 80D (₹25K), HRA (₹1.2L/yr) deductions.
| Annual CTC | New Regime / month | Old Regime / month | Better choice |
|---|---|---|---|
| ₹7,00,000 | ₹48,500 | ₹46,200 | New Regime ✓ |
| ₹10,00,000 | ₹67,800 | ₹65,100 | New Regime ✓ |
| ₹15,00,000 | ₹97,500 | ₹96,800 | New Regime ✓ |
| ₹50,00,000 | ₹2,94,000 | ₹3,02,000 | Old Regime ✓ |
* Illustrative estimates. Actual figures depend on your specific allowances, HRA city, NPS contributions, and employer structure. Use the calculator above for your exact numbers.
PF Calculation Examples as per New Labour Code
Three worked examples showing how EPF is calculated under the New Wage Code's 50% basic rule.
Example 1 — CTC ₹6,00,000/yr (₹50,000/month)
- 1.Monthly Basic (50% of CTC) = ₹25,000
- 2.Employee EPF = 12% × ₹25,000 = ₹3,000/month
- 3.Employer EPF = 12% × ₹25,000 = ₹3,000/month
- 4.Monthly gratuity provision = ₹25,000 × 15/26/12 ≈ ₹1,202/month
- 5.In-hand ≈ ₹50,000 − ₹3,000 − ₹1,202 − tax = ~₹44,500/month
Example 2 — CTC ₹12,00,000/yr (₹1,00,000/month)
- 1.Monthly Basic (50% of CTC) = ₹50,000
- 2.Employee EPF = 12% × ₹50,000 = ₹6,000/month
- 3.Employer EPF = 12% × ₹50,000 = ₹6,000/month
- 4.Monthly gratuity provision = ₹50,000 × 15/26/12 ≈ ₹2,404/month
- 5.In-hand ≈ ₹1,00,000 − ₹6,000 − ₹2,404 − tax = ~₹79,500/month (new regime)
Example 3 — CTC ₹20,00,000/yr (₹1,66,667/month)
- 1.Monthly Basic (50% of CTC) = ₹83,333
- 2.Employee EPF = 12% × ₹83,333 = ₹10,000/month
- 3.Employer EPF = 12% × ₹83,333 = ₹10,000/month
- 4.Monthly gratuity provision = ₹83,333 × 15/26/12 ≈ ₹4,006/month
- 5.In-hand ≈ ₹1,66,667 − ₹10,000 − ₹4,006 − tax = ~₹1,22,000/month (new regime)
Frequently Asked Questions
How is in-hand salary calculated under New Wage Code 2025?▼
Under New Wage Code 2025, Basic ≥ 50% of CTC. Employee EPF = 12% of Basic. In-hand = CTC − Employee EPF − Gratuity − Income Tax − Professional Tax. Example: ₹12L CTC → Basic ₹6L → Employee EPF ₹72,000/yr → monthly in-hand ~₹79,500 (new tax regime).
What is the 50% basic salary rule?▼
The Code on Wages, 2019 mandates that no employer can set Basic salary below 50% of gross CTC. This prevents companies from shifting pay to allowances solely to reduce PF liability. The rule came into effect on 21 November 2025.
How does the new wage code affect PF deduction?▼
With a higher Basic (50% vs the earlier 30-40%), EPF is calculated on a larger base. For a ₹12L CTC: Old Basic ₹4.8L → EPF ₹57,600/yr. New Basic ₹6L → EPF ₹72,000/yr. That's ₹1,200 less in monthly in-hand — but ₹1,200 more saved in your PF account.
Old Tax Regime vs New Tax Regime: which gives higher in-hand salary?▼
For most employees with CTC up to ₹15L, the New Tax Regime gives higher in-hand due to lower slab rates. For high earners (₹50L+) with significant deductions (HRA, 80C, NPS, home loan interest), the Old Tax Regime can be better. Use the calculator above with your CTC to compare both regimes instantly.
What is the difference between take-home salary and in-hand salary?▼
Take-home and in-hand refer to the same thing — the net amount credited to your bank after all deductions (employee EPF, professional tax, income tax TDS). Employer PF and gratuity are costs borne by your employer and are not part of your monthly credit.
Illustrative estimates only. Verify with your HR payslip, EPFO passbook, and a qualified tax professional for your exact in-hand salary.