In hand salary meaning: what take home salary is
In hand salary, also called take home or net salary, is the amount credited to your bank account each month after income tax, employee provident fund and professional tax are deducted from gross salary. For a 12 LPA CTC it is about ₹90,200 a month in FY 2026-27.
FY 2026-27 figures, rules verified 3 Sep 2026. Numbers assume basic at 40% of CTC, employer PF inside CTC and ₹2,400 professional tax unless stated.
The calculation runs CTC to gross to taxable to in hand. Employer PF and gratuity come out of CTC. The standard deduction and any old-regime deductions come off gross to get taxable income. Tax on the slabs, then your EPF and professional tax, come off gross to get the annual in hand figure, which is divided by twelve.
Variable pay is usually paid quarterly or annually. The monthly in hand figure on this site excludes it and shows it separately, because an offer letter with 15% variable pays a lower monthly credit than the CTC suggests.
Two people with the same CTC can take home different amounts if their basic percentage, PF policy or state differ. That is why the calculator lets you set each of these.
See the figure for your own salary on the in hand calculator.
Questions
Related terms
- CTC vs gross vs in hand — CTC is what the company spends, gross is CTC minus the employer's PF and gratuity contributions, and in hand is gross minus income tax, your own EPF and professional tax.
- Professional tax — Professional tax is a small state levy on salaried income, capped at ₹2,500 a year by Article 276 of the Constitution and deducted by your employer each month.
- EPF — EPF stands for Employees Provident Fund, a retirement account under the EPF Act 1952 into which you contribute 12% of basic and your employer another 12%, of which 8.33% of basic capped at ₹1,250 a month goes to the Employees Pension Scheme.