What this tool helps you decide
Reconcile an employer’s quoted CTC with gross salary and estimated take-home. This helps an employee understand an offer or an employer explain a constant salary structure without assuming one payroll arrangement applies to everyone.
How to use it
- Choose whether the CTC input is annual or monthly. Other fields state their own units: basic salary, specified allowances and statutory wage bases are monthly; gratuity provisions and employer-only costs are annual.
- Enter employer-confirmed PF and ESI coverage and statutory wages. Basic pay is not automatically the statutory wage base. Confirm the relevant coverage history and rates rather than inferring eligibility solely from CTC.
- Add employer-only benefits already included in CTC so gross can be derived accurately. Do not enter the same cost again as an employee deduction. Basic and specified allowances divide gross; they are not added on top of CTC.
- Select the supported financial year and tax regime. Old-regime claims should include eligible amounts once, excluding standard deduction. Professional tax is manually entered; the state schedule is not inferred.
Understanding the results
CTC is employer cost. Removing employer-only contributions and provisions leaves gross salary. Employee contributions, other entered deductions and estimated tax then reduce take-home.
The annual/monthly switch changes the display of the reconciliation, not the CTC input period. Monthly comparison divides annual amounts evenly by twelve; actual payslips can vary by month.
The tax comparison uses the existing resident-under-60 ordinary-salary model. Other income, prior employment and employer adjustments can make actual withholding different from this isolated estimate.
FOLLOW THE NUMBERS
A worked example
This fixed example is separate from your live inputs. It uses the editable defaults with employer coverage confirmed.
- Annual CTC ₹12,00,000 less employer PF of ₹1,800 × 12 = ₹21,600 gives gross salary ₹11,78,400. No ESI or other employer costs are entered.
- Employee PF is also ₹21,600 annually. Under the supported FY 2026–27 new-regime ordinary-salary assumptions, the engine estimates zero income tax.
- Annual take-home is ₹11,56,800; dividing by twelve gives ₹96,400 monthly. This is conditional on the confirmed example coverage and structure.
| Measure | Example value |
|---|---|
| Estimated monthly take-home | ₹96,400.00 |
| Estimated annual take-home | ₹11,56,800.00 |
| Annual CTC | ₹12,00,000.00 |
| Annual gross salary | ₹11,78,400.00 |
| Monthly gross salary | ₹98,200.00 |
| Residual monthly allowance | ₹33,200.00 |
| Monthly employer PF/EPS combined | ₹1,800.00 |
| Monthly employee PF | ₹1,800.00 |
| Monthly employer ESI | ₹0.00 |
| Monthly employee ESI | ₹0.00 |
| Annual employer-only costs | ₹21,600.00 |
| Annual employee deductions before tax | ₹21,600.00 |
| Annual estimated income tax | ₹0.00 |
| Old-regime tax comparison | ₹1,57,060.00 |
| New-regime tax comparison | ₹0.00 |
Common business scenarios
Comparing two employment offers
Compare benefits and employer costs alongside take-home. The same CTC can produce different cash salary when insurance, gratuity provisions or employer contributions differ.
Checking a PF-based salary breakup
Ask the employer which statutory wage base and rate apply. A capped contribution and a contribution on actual wages can create different take-home at the same gross salary.
A mid-year joiner or employee with variable pay
Use this only as a constant-structure illustration. Gather prior-employer income, bonuses and year-to-date withholding for a more complete payroll calculation.
Assumptions and limitations
Gratuity provision in CTC is not a calculation of gratuity payable on exit. PF/EPS allocation is combined because it does not change this cash-flow reconciliation.
Perquisites, special-rate income, high employer-contribution tax limits, arrears and state-specific professional-tax schedules are outside this simplified payroll view.
Rules and limits
ESI rates are 0.75% employee and 3.25% employer, effective 1 July 2019. Coverage is manually confirmed, including the ordinary ₹21,000 ceiling, exceptions and continuing contribution periods. PF uses confirmed rates and wages with an optional ₹15,000 cap. The 2026 Labour Ministry handbook has revised wage definitions; this tool does not infer statutory wages from a basic-pay percentage. State professional tax and gratuity entitlement are not automated.
Income tax integration
Reuses ILeven’s existing year-specific engine for resident individuals under 60 with ordinary salary. It includes standard deduction, rebate, surcharge, relief and cess. Optional claims start at zero. Prior-employer income, variable pay, perquisites, high employer-contribution tax limits and special-rate income require separate review. Monthly tax is a level annual estimate, not payroll certification.
Rule sources and scope
The inherited preset records source review on 13 October 2026. Supported periods and exclusions remain as stated; there is no automatic legal-update feed.
- EPFO contribution schedule (indexed official source; direct retrieval blocked)
- ESIC contribution rates, effective 1 July 2019
- 2026 Ministry of Labour compliance handbook; statutory wage definitions
- Enacted Finance Act 2026: section 3 and First Schedule Part I-B
- Income-tax Act 2025 as amended: sections 19, 123, 124, 126, 153, 156, 202 and 516
Frequently asked questions
Why must I confirm the statutory wages?
CTC and basic pay alone do not establish PF/ESI coverage or wages. Employer structure and employee history matter.
Is gratuity deducted twice?
No. An entered employer provision reduces gross derived from CTC once; it is not an employee deduction.
Is this my exact payslip?
No. It is a constant-structure estimate. Month-specific deductions, declarations and employer adjustments can change take-home.
Does the monthly switch change my CTC input?
No. It only changes the display of the reconciliation. The CTC input period remains the period selected in the salary assumptions.
Why can two offers with equal CTC have different take-home?
Employer benefits and contributions included in CTC can differ, as can employee deductions and tax circumstances. Review each written breakup.
Does the calculator infer professional tax from my state?
No. Enter a confirmed monthly amount. The annual estimate repeats it for twelve months, which may differ from an actual state-specific payment schedule.
What to do next
Compare the result with the employer’s written breakup and declarations before using it for a household budget or offer decision.
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