Placement Salary Calculator

When you receive a job offer, the number you see is usually the CTC (Cost to Company) — the total amount the company spends on you annually. However, your actual take-home or in-hand salary is significantly lower due to various deductions and employer contributions.

Components of CTC

• Basic Salary: The core component, usually 40-50% of CTC. PF and gratuity are calculated based on this.
• House Rent Allowance (HRA): Typically 40-50% of basic salary. Can be partially tax-exempt if you pay rent.
• Special Allowance: A flexible component that makes up the remaining amount after other components.
• Employer PF: The company's 12% contribution to your Provident Fund. Part of CTC but not paid directly to you.

Common Deductions

• Employee PF: Your 12% contribution to the Provident Fund, deducted from basic salary.
• Professional Tax: A state-level tax, typically ₹200/month (varies by state, max ₹2,500/year).
• Income Tax (TDS): Tax deducted at source based on your income tax slab and regime.

New vs Old Tax Regime

The new tax regime offers lower rates and higher rebate (no tax up to ~₹12.75L income) but disallows most deductions (80C, HRA exemption, etc.). The old regime has higher rates but allows deductions that can reduce taxable income significantly if you have investments and pay rent.

For most IT freshers with CTC under ₹12-15 LPA and minimal investments, the new regime is typically more beneficial. Use this calculator to compare both regimes for your specific CTC.

Comparing Job Offers

When evaluating multiple job offers, don't just compare CTC numbers. Two offers with the same CTC can have different in-hand salaries depending on the salary structure (basic %, PF applicability, etc.). Use the "Compare 2 Offers" feature above to see the actual difference in your monthly take-home pay.