In-Hand Salary Calculator — New Wage Code 2025 (FY 2026-27)
Enter your CTC and see your exact monthly in-hand salary under the New Wage Code (50% basic rule) and the new tax regime — with EPF, professional tax, and a full gross-to-net breakdown.
= Twelve Lakh Rupees per year
Your assumptionsTap to editBasic 50% of CTC · Maharashtra · PF on actual basicWhy is basic set to 50%? See how the New Wage Code drives your PF & take-home →
The New Wage Code (Code on Wages, 2019) sets basic at a minimum of 50% of CTC. A higher basic means more PF and gratuity — building retirement savings, with slightly lower monthly take-home.
Monthly in-hand salary
₹85,388
₹10,24,654 per year · new tax regime · FY 2026-27
₹0 income tax — Section 87A rebate covers your full slab tax
| Component | Monthly | Annual |
|---|---|---|
| Gross salary (CTC minus employer-side costs) | ₹91,596 | ₹10,99,154 |
| Basic pay (50% of CTC) | ₹50,000 | ₹6,00,000 |
| HRA + other allowances | ₹41,596 | ₹4,99,154 |
| Employee EPF (12% of basic) | − ₹6,000 | − ₹72,000 |
| Professional tax (Maharashtra) | − ₹208 | − ₹2,500 |
| Income tax (TDS, new regime) | ₹0 | ₹0 |
| In-hand salary | ₹85,388 | ₹10,24,654 |
- Employer EPF (in CTC, paid to your PF account)
- ₹6,000/mo
- Gratuity provision (in CTC)
- ₹2,404/mo
- Under the pre-Wage-Code 40% basic structure
- ₹88,269/mo (+₹2,881)
Logical Next Step: Home Loan Prepayment Calculator
Strategic prepayment can save you lakhs in interest and shave years off your mortgage. See what a slice of your in-hand salary can do.
Based on your monthly in-hand of ₹85,388, a home loan of up to ₹51,23,280 (60× in-hand) is a common affordability ceiling. Prepaying ₹8,539/month (10% of in-hand) can cut years of interest.
How we calculate this
- Basic pay = your chosen % of CTC (default 50% — the New Wage Code minimum effective 21 November 2025).
- Employer-side costs inside CTC — employer EPF (12% of basic), gratuity provision (15/26 of monthly basic ≈ 4.81% of basic), and employer NPS if enabled — are removed first to get your gross salary.
- Income tax (new regime, FY 2026-27): gross salary minus the ₹75,000 standard deduction is taxed at slab rates (0% to ₹4L, then 5/10/15/20/25% per ₹4L band, 30% above ₹24L). The Section 87A rebate cancels up to ₹60,000 of tax when taxable income is ≤ ₹12 lakh, with marginal relief just above it. Surcharge applies above ₹50 lakh and 4% cess on the result.
- Professional tax is deducted from in-hand using your state's salary bands — but it is not deductible from taxable income under the new regime.
- In-hand = gross salary − employee EPF − employee NPS − professional tax − income-tax TDS, shown monthly and annually.
Assumptions you can edit
- Basic salary = 50% of CTC. The Code on Wages, 2019 (in force since 21 Nov 2025) requires basic pay to be at least 50% of CTC. You can lower this to model an older salary structure.
- EPF = 12% of actual basic. Employee and employer each contribute 12% of basic. Switch to the statutory option if your employer caps PF at the ₹15,000/month wage ceiling (₹1,800/month each).
- Employer PF is part of CTC. Most Indian offers include the employer EPF contribution inside CTC. Untick if yours is paid over and above CTC.
- Gratuity provision is part of CTC. Companies typically provision gratuity at 15/26 of monthly basic per year of service (≈4.81% of basic) inside CTC.
- Professional tax by state. Salary-banded professional tax for your selected state. Not deductible from taxable income under the new regime.
- New tax regime (Section 115BAC). Tax is computed under the new regime only: ₹75,000 standard deduction, Section 87A rebate up to ₹60,000 (taxable income ≤ ₹12 lakh), surcharge and 4% cess. For the old regime or other income, use the Income Tax Calculator.
Worked example: ₹12,00,000 CTC (FY 2026-27)
- Basic pay (50% of CTC) = ₹6,00,000/year (₹50,000/month)
- Employer EPF ₹72,000 + gratuity provision ₹28,846 stay inside CTC → gross salary ₹10,99,154
- Taxable income = ₹10,99,154 − ₹75,000 standard deduction = ₹10,24,154
- Slab tax ₹42,415 − Section 87A rebate ₹42,415 = ₹0 income tax
- Employee EPF ₹6,000/month + professional tax ₹2,500/year (Maharashtra)
- Monthly in-hand ≈ ₹85,388 (₹10,24,654/year)
Every figure above is locked by automated tests against the FY 2026-27 rules — if a Budget changes a rate, the dated config and this example are updated together.
The New Wage Code's 50% basic rule, in one minute
The Code on Wages, 2019 — in force since 21 November 2025 — requires basic pay to be at least 50% of CTC. EPF and gratuity are percentages of basic, so a higher basic moves money from monthly allowances into retirement savings:
| Annual CTC | EPF/yr at 40% basic | EPF/yr at 50% basic |
|---|---|---|
| ₹6,00,000 | ₹28,800 | ₹36,000 |
| ₹12,00,000 | ₹57,600 | ₹72,000 |
| ₹20,00,000 | ₹96,000 | ₹1,20,000 |
The calculator shows your own delta — the result panel compares your in-hand against the pre-Wage-Code 40% basic structure. For the full picture on all four codes, read our New Labour Codes 2026 guide.
Frequently asked questions
How is in-hand salary calculated under New Wage Code 2025?
Under the New Wage Code (in force since 21 November 2025), basic salary must be at least 50% of CTC. Employee EPF is 12% of basic. Monthly in-hand = (CTC − employer EPF − gratuity provision) ÷ 12 − employee EPF − professional tax − income-tax TDS. Example: on a ₹12 lakh CTC with 50% basic, monthly in-hand is about ₹85,400 in FY 2026-27 — income tax is zero because taxable income stays within the ₹12 lakh Section 87A rebate limit.
What is the 50% basic salary rule under the New Wage Code?
The Code on Wages, 2019 requires that basic pay be at least 50% of total CTC, effective 21 November 2025. Because EPF and gratuity are percentages of basic, a higher basic increases retirement contributions and slightly reduces monthly in-hand.
Which income tax rules does this calculator use for FY 2026-27?
It uses the new tax regime (Section 115BAC) for FY 2026-27 (AY 2027-28): slabs of 0% up to ₹4L, 5% to ₹8L, 10% to ₹12L, 15% to ₹16L, 20% to ₹20L, 25% to ₹24L and 30% above; ₹75,000 standard deduction; Section 87A rebate up to ₹60,000 when taxable income is ≤ ₹12 lakh (with marginal relief just above it); surcharge above ₹50 lakh; and 4% health & education cess. Budget 2026 made no changes to these rates.
Why does this calculator not show the old tax regime?
Old-regime tax depends on deductions this page does not collect — HRA exemption, 80C, 80D, home-loan interest. Rather than show a misleading comparison, this tool computes the new regime (the default for most salaried taxpayers) and links to our Income Tax Calculator for a full old-vs-new comparison with your deductions.
Is professional tax deducted from taxable income in the new regime?
No. Under Section 115BAC the only Section 16 deduction allowed is the ₹75,000 standard deduction — professional tax (Section 16(iii)) is not deductible. It still reduces your in-hand salary, and this calculator subtracts the salary-banded amount for your state.
What is the difference between take-home salary and in-hand salary?
They mean the same thing: the net amount credited to your bank account each month after employee EPF, professional tax and income-tax TDS. Employer EPF, employer NPS and gratuity are part of CTC but are never paid out monthly, so they are excluded.
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This calculator is for informational and educational purposes only. Results are estimates based on the assumptions you provide — actual figures depend on your employer's salary structure, allowances and policies. It is not tax advice. Verify against your payslip and consult a qualified tax professional or your HR department before making financial decisions.