Cost to Company is what your employer spends on you. In-hand salary is what actually reaches your bank account. The gap is usually 15–25%, which can come as a surprise the first time you see it.
Standard 40 % Basic + 40 % HRA (metro) breakup, with PF, ESI, PT, TDS deducted.
Monthly breakup
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Split CTC into components — commonly 40% Basic, 40% of Basic as HRA (metro) or 50% in some structures, then Special Allowance as the balancing figure.
Remove the employer's own costs. Employer PF and gratuity provision sit inside CTC but never reach you.
Deduct employee PF at 12% of Basic + DA, subject to the wage ceiling your employer applies.
Deduct ESI at 0.75% if gross wages are at or below the ESI wage ceiling.
Deduct professional tax per your state's slab, and TDS based on your regime and declared investments.
On a ₹8,00,000 CTC with a 40% Basic and metro HRA, Basic works out to ₹26,667 a month and gross to roughly ₹63,584. After employee PF, professional tax and TDS, monthly in-hand typically lands in the ₹55,000–₹58,000 range depending on regime and declarations.
Because CTC includes money your employer spends that never reaches you — employer PF, gratuity provision, insurance premiums — plus your own deductions for PF, professional tax and TDS.
It cuts monthly cash because PF is 12% of Basic, but it raises your retirement corpus and your gratuity, both of which are calculated on Basic + DA. For most people a higher Basic is better over a full career.
Yes — TDS is estimated for the regime you select. Use the Old vs New regime comparator if you want to see both side by side.
Garuda HR looks after payroll, attendance, leave and statutory compliance for Indian teams — the same arithmetic, run for you every month, with a full audit trail. We would be glad to show you around.