Quick answer: Take home salary, also called net or in-hand salary, is what reaches the employee’s bank account. You start from gross salary and deduct employee PF at 12% of wages, state professional tax and income tax deducted at source under section 392 of the Income-tax Act, 2025. In Pune, an ₹18 lakh CTC nets about ₹1,28,921 a month.
- Employee PF is 12% of wages, or ₹3,000 a month on the ₹25,000 ceiling.
- Maharashtra professional tax is ₹200 a month and ₹300 in February, so ₹2,500 a year.
- ESI applies only where wages are ₹21,000 a month or less, so most tech hires skip it.
- Wages must be paid before the 7th of the next month under section 17 of the Code on Wages, 2019.
How do you work out take-home from CTC?
Strip out your employer costs to reach gross, then subtract the three statutory deductions. Here is a Pune engineer on ₹18,00,000 CTC, with basic at 50% of gross and PF on the ceiling.
| Line | Yearly | Typical month |
|---|---|---|
| Gross salary | ₹17,19,643 | ₹1,43,304 |
| Employee EPF | ₹36,000 | ₹3,000 |
| Professional tax | ₹2,500 | ₹200 |
| TDS on salary, new regime | ₹1,34,086 | ₹11,174 |
| Take-home | ₹15,47,057 | ₹1,28,930 |
February pays ₹100 less, at ₹1,28,830, because professional tax is ₹300 that month. Averaged over the year, take-home is ₹1,28,921.
The TDS line assumes the default new regime: ₹75,000 standard deduction, slab tax of ₹1,28,929 and 4% cess. Our salary calculator for India reruns it for any package.
Why does net pay change during the year?
Mostly because TDS is an estimate.
Under section 392, the employer deducts tax at the average rate on estimated yearly income.
A mid-year bonus, a raise or a late switch to the old regime changes that estimate. Payroll then spreads the difference over the remaining months. So March can look very different from April. Our guide to payroll compliance in India covers the monthly cycle.
PF moved too. When the EPF ceiling rose from ₹15,000 to ₹25,000 on 17 September 2026, ceiling-capped employees saw their own PF jump from ₹1,800 to ₹3,000 a month. September itself was split across the two ceilings. Hence the October payslip was the first full drop.
None of this is lost money. PF builds the employee’s retirement balance, and excess TDS comes back as a refund. But your hires judge offers on the monthly credit. Always.
A candidate in Pune comparing two offers will usually ask for the in-hand number before the CTC, and an offer letter that shows only the yearly package tends to stall at that question. Put the monthly figure in writing.
How does Remunance deliver accurate take-home pay?
Remunance computes TDS every month, files the quarterly TDS returns and issues the annual salary TDS certificate, Form 130 from tax year 2026-27 under the Income Tax Department’s Form 130 FAQs. Professional Tax and EPF go out on schedule too. As the legal employer, we carry the filing risk. Employee and client payroll queries get answered within 2 working days. To see what your next hire will actually bank, request a take-home breakdown for your offer.
What else do people ask about take home salary?
What is the difference between net salary and in-hand salary?
There is none in Indian usage. Both mean gross salary minus employee PF, professional tax and TDS, the figure that reaches the bank.
How much is in-hand on ₹18 lakh CTC?
About ₹1,28,921 a month in Pune under the new regime, with PF on the ₹25,000 ceiling. Paying PF on full basic lowers that figure.
Why is my take-home lower than CTC divided by 12?
CTC includes employer PF, EDLI, PF admin charges and gratuity, which never reach you as cash. Employee PF, professional tax and TDS then come out of what remains.