India Employee Cost Calculator
Instantly break down gross salary, deductions, taxes, and total employer cost. Powered by India's New Tax Regime (2025-26).
What You Pay (Total Employer Cost)
Employer Provisions (Annual)
Employee Salary Breakdown
+Earnings
Deductions
Net Take-Home Pay
What is CTC in India?
Cost to Company (CTC) in India includes the employee's gross salary plus employer contributions to Provident Fund (PF at 12% of basic, capped at Rs 1,800 per month), Employee State Insurance (ESI at 3.25% for salaries under Rs 21,000 per month), gratuity provision (4.81% of basic), and any insurance or benefits. The actual take-home salary after deductions for PF, professional tax, and income tax is typically 70-80% of CTC for mid-range salaries. Source: Versatile India EOR Data 2026.
Frequently Asked Questions
Cost to Company (CTC) is the total amount an employer spends on an employee annually. It includes gross salary, Provident Fund (PF) at 12% of basic salary capped at Rs 1,800 per month, gratuity provisions (4.81% of basic), health insurance, life insurance, and other benefits. CTC does not equal take-home salary after taxes and employee deductions.
Under the New Tax Regime for FY 2025-26, you get a standard deduction of Rs 75,000 on your gross income. Tax is calculated on the taxable income using slab rates: 0% for income up to Rs 4,00,000, 5% for Rs 4,00,001 to Rs 8,00,000, 10% for Rs 8,00,001 to Rs 12,00,000, and higher slabs above. If your taxable income is below Rs 7,00,000, the Section 87A rebate makes tax zero.
Employee Provident Fund (PF) is a mandatory retirement contribution. The employee contributes 12% of basic salary per month, capped at Rs 1,800 per month. This amount is deducted from the employee's salary and deposited in their PF account. The employer also contributes an equal amount (employer PF).
Gross salary is the total salary before any deductions. Take-home (net) salary is what the employee receives after deducting Employee PF, professional tax, and income tax. For mid-range salaries in India, take-home is typically 70-80% of CTC due to these mandatory deductions.