{"id":20730,"date":"2023-11-01T10:11:46","date_gmt":"2023-11-01T04:41:46","guid":{"rendered":"https:\/\/internshala.com\/blog\/?p=20730"},"modified":"2024-03-05T15:55:20","modified_gmt":"2024-03-05T10:25:20","slug":"difference-between-ctc-and-in-hand-salary","status":"publish","type":"post","link":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/","title":{"rendered":"Difference Between CTC and In-Hand Salary [How to Calculate it?]"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2400\" height=\"1000\" src=\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/11\/CTC-vs-In-Hand-Salary-1.jpg\" alt=\"CTC vs In-Hand Salary\" class=\"wp-image-20734\" srcset=\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/11\/CTC-vs-In-Hand-Salary-1.jpg 2400w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/11\/CTC-vs-In-Hand-Salary-1-672x280.jpg 672w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/11\/CTC-vs-In-Hand-Salary-1-1024x427.jpg 1024w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/11\/CTC-vs-In-Hand-Salary-1-1536x640.jpg 1536w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/11\/CTC-vs-In-Hand-Salary-1-2048x853.jpg 2048w\" sizes=\"(max-width: 2400px) 100vw, 2400px\" \/><\/figure><\/div>\n\n\n<p>Are you beginning your professional journey soon? If yes, gaining knowledge about financial terms you will encounter several times becomes necessary. You must know that the CTC offered is not the same as the salary you get in hand. So, what is the difference between these two?<\/p>\n\n\n\n<p>This blog will discuss the difference between CTC and in hand salary through a definition and comparison table. You will learn salary terms you must know and how to calculate CTC and in-hand salary to manage your money like a pro!<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#CTC_vs_In_Hand_Salary_Definition\" >CTC vs In Hand Salary: Definition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#CTC_vs_In_Hand_Salary_Common_Terms\" >CTC vs In Hand Salary: Common Terms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#How_to_Calculate_CTC_and_In_Hand_Salary\" >How to Calculate CTC and In Hand Salary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CTC_vs_In_Hand_Salary_Definition\"><\/span>CTC vs In Hand Salary: Definition<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To understand the difference between the two, you must first understand what is CTC and in-hand salary. Let us discuss their definition.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is CTC?<\/h3>\n\n\n\n<p>Cost to Company (CTC) is the total amount a company spends to hire and retain an employee. From the point of view of the employee, CTC is the salary package they are offered at the time of hiring.<\/p>\n\n\n\n<p>It includes several direct and indirect benefits, such as basic salary, provident fund, HRA, travel allowance, etc. CTC differs between full-time jobs and <a href=\"https:\/\/internshala.com\/jobs\/part-time-jobs\/?utm_source=is_blog&amp;utm_medium=difference-between-ctc-and-in-hand-salary&amp;utm_campaign=candidate-blog-detail\" target=\"_blank\" rel=\"noreferrer noopener\">part-time jobs<\/a>. It also differs from city to city. Therefore, CTC for <a href=\"https:\/\/internshala.com\/jobs\/jobs-in-delhi\/?utm_source=is_blog&amp;utm_medium=difference-between-ctc-and-in-hand-salary&amp;utm_campaign=candidate-blog-detail\" target=\"_blank\" rel=\"noreferrer noopener\">jobs in Delhi<\/a> will be different from CTC for <a href=\"https:\/\/internshala.com\/jobs\/jobs-in-mumbai\/?utm_source=is_blog&amp;utm_medium=difference-between-ctc-and-in-hand-salary&amp;utm_campaign=candidate-blog-detail\" target=\"_blank\" rel=\"noreferrer noopener\">jobs in Mumbai<\/a>. Also, check out this blog on the <a href=\"https:\/\/internshala.com\/blog\/what-are-your-salary-expectations\/\" target=\"_blank\" rel=\"noreferrer noopener\">best ways to put your salary expectations during a job interview<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large desktop-image\"><a href=\"https:\/\/internshala.com\/jobs\/?utm_source=is_blog&amp;utm_medium=difference-between-ctc-and-in-hand-salary&amp;utm_campaign=candidate-web-banner\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"203\" src=\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-1024x203.jpg\" alt=\"Find and Apply Banner\" class=\"wp-image-21795\" srcset=\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-1024x203.jpg 1024w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-672x133.jpg 672w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-1536x305.jpg 1536w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-2048x406.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full mobile-image\"><a href=\"https:\/\/internshala.com\/jobs\/?utm_source=is_blog&amp;utm_medium=difference-between-ctc-and-in-hand-salary&amp;utm_campaign=candidate-mobile-banner\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"356\" height=\"256\" src=\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Job-Banner-for-candidates.jpg\" alt=\"Job Banner for candidates\" class=\"wp-image-21794\"\/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">What is In Hand Salary?<\/h3>\n\n\n\n<p>In-hand salary is the amount an employee receives in hand after tax and other deductions. It is also known as net salary or take-home pay. Net salary differs from gross salary because tax deductions are not made in the latter. Learn more about the difference between the two with this blog discussing <a href=\"https:\/\/internshala.com\/blog\/difference-between-gross-salary-and-net-salary\/\" target=\"_blank\" rel=\"noreferrer noopener\">gross salary vs net salary<\/a>.<\/p>\n\n\n\n<p>Further, to get a better understanding of how taxation affects your in-hand salary, you can refer to an online <a href=\"https:\/\/trainings.internshala.com\/personal-finance-101-course\/?utm_source=is_blog&amp;utm_medium=difference-between-ctc-and-in-hand-salary&amp;utm_campaign=candidate-blog-detail\" target=\"_blank\" rel=\"noreferrer noopener\">personal finance course<\/a>.Difference Between CTC and In Hand Salary: Comparison Table<\/p>\n\n\n\n<p>Let us now explore the difference between CTC and in hand amount in the salary package with the help of a comparison table.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>CTC (Cost to Company)<\/th><th>In Hand Salary<\/th><\/tr><\/thead><tbody><tr><td>It is the total salary package offered by the company.<\/td><td>It is the amount employees receive after essential deductions.<\/td><\/tr><tr><td>It is a salary that the employer is willing to pay to the employee in exchange for their services. It is not the take-home salary.<\/td><td>It is an amount an employee takes home or is credited to the employee\u2019s bank account.<\/td><\/tr><tr><td>It is a sum of several direct and indirect benefits and savings contributions.<\/td><td>It is calculated by subtracting taxes and company policy deductions.<\/td><\/tr><tr><td>Its components include basic salary, leave travel allowance, <a href=\"https:\/\/internshala.com\/blog\/house-rent-allowance\/\" target=\"_blank\" rel=\"noreferrer noopener\">house rent allowance<\/a>, dearness allowance, bonus, life insurance, food coupons, provident fund, gratuity, etc.<\/td><td>It includes gross salary minus the TDS, professional tax, provident fund, insurance premium, and other authorized deductions.<\/td><\/tr><tr><td>You can negotiate CTC with your employer when you receive the job offer.&nbsp;<\/td><td>You can increase or better manage your in-hand salary with proper tax planning to avoid large tax deductions.&nbsp;<\/td><\/tr><tr><td>You receive annual hikes and appraisals based on your CTC.<\/td><td>In-hand salary may change due to annual hikes and appraisals.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CTC_vs_In_Hand_Salary_Common_Terms\"><\/span>CTC vs In Hand Salary: Common Terms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can get more clarity on the difference between salary and CTC by learning some common terms associated with the two. These terms are given below.<\/p>\n\n\n\n<ul>\n<li><strong>Gross Salary:<\/strong> It is the amount that the employee receives before any tax deductions. It includes basic salary, HRA, and other bonuses or benefits. It is higher than the in-hand salary because the EPF contribution and income tax are not deducted.&nbsp;<\/li>\n\n\n\n<li><strong>Grade Pay:<\/strong> It is a structured payment method in organizations (government, public, or private) that use a grade pay system. It follows a compensation structure where an employee receives a specific income according to the level or grade of their job position.&nbsp;<\/li>\n\n\n\n<li><strong>Basic Salary:<\/strong> It is the core component of an employee\u2019s salary. It is a non-variable minimum amount that an employee receives.&nbsp;<\/li>\n\n\n\n<li><strong>House Rent Allowance (HRA):<\/strong> It is the amount paid by the company to the employee to reimburse them for their housing rent. Employees receive it even if they are not paying rent and own a house. Depending on the ownership and rental status, this income becomes taxable.&nbsp;<\/li>\n\n\n\n<li><strong>Superannuation:<\/strong> It is a kind of fund for the employee that they receive as a pension or retirement benefit. It is calculated based on salary, age, and other considerations.<\/li>\n\n\n\n<li><strong>City Compensatory Allowance (CCA): <\/strong>It is a compensatory allowance provided by the employer keeping in mind the higher cost of living in metropolitan cities.&nbsp;<\/li>\n\n\n\n<li><strong>Tax Deduction at Source (TDS):<\/strong> It is an income tax collected at the source of income. According to this mechanism, the person liable to make payment to the other person shall deduct tax at source and remit the same into the account of the central government.&nbsp;<\/li>\n\n\n\n<li><strong>Professional Tax:<\/strong> It is a tax deducted from your salary by your employer and submitted to the state government. It is levied on all individuals who earn an income through any medium, profession, employment, or trade.<\/li>\n\n\n\n<li><strong>Gratuity: <\/strong>It is the amount a company pays to the employee in return for the services provided by them to the company. It is provided when the employee has worked in a company for five years or more.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Calculate_CTC_and_In_Hand_Salary\"><\/span>How to Calculate CTC and In Hand Salary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As a professional, you should know how to calculate various components of your salary package. It will help you manage household expenses, tax-saving schemes, investment decisions, and other money-related plans.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How to Calculate CTC?<\/h3>\n\n\n\n<p><strong><\/strong>Here is how you can calculate CTC or cost to the company.<\/p>\n\n\n\n<p><strong>Cost to Company (CTC) = Direct Benefits + Indirect Benefits + Savings Contribution<\/strong><\/p>\n\n\n\n<ul>\n<li>The direct benefits include the amount paid directly to the employee. It includes basic salary, house rent allowance (HRA), dearness allowance (DA), <a href=\"https:\/\/internshala.com\/blog\/leave-travel-allowance\/\" target=\"_blank\" rel=\"noreferrer noopener\">leave travel allowance<\/a> (LTA), vehicle allowance, and mobile phone allowance.&nbsp;<\/li>\n\n\n\n<li>The indirect benefits are the sum of payments made by the employer on behalf of the employees. They include accommodation rent, income tax savings, interest-free loans, and life and medical insurance.&nbsp;<\/li>\n\n\n\n<li>Savings contributions are schemes the employee is entitled to and provided with. They include gratuity, employee provident fund, and superannuation benefits.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">How to Calculate in Hand Salary?<\/h3>\n\n\n\n<p>Before calculating the in-hand salary, you need to calculate the gross salary. Here is how you can do it.<\/p>\n\n\n\n<p><strong>Gross Salary = Basic Pay + HRA + Other Bonuses\/Allowances<\/strong><\/p>\n\n\n\n<p>Once you have the gross salary, you can calculate the in-hand salary easily by deducting the taxes and other deductions. Here is how you can calculate in hand salary:<\/p>\n\n\n\n<p><strong>In Hand Salary (Net Salary) = Gross Salary &#8211; Deductions<\/strong> (Income Tax, Employees\u2019 Provident Fund Contribution (EPF), Professional Tax) All these calculations may seem overwhelming. Therefore, you can use Excel to make your task easy. You can refer to these <a href=\"https:\/\/trainings.internshala.com\/blog\/excel-formulas\/\" target=\"_blank\" rel=\"noreferrer noopener\">basic and advanced Excel formulas<\/a> for salary calculations.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large desktop-image\"><a href=\"https:\/\/internshala.com\/jobs\/?utm_source=is_blog&amp;utm_medium=difference-between-ctc-and-in-hand-salary&amp;utm_campaign=candidate-web-banner\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"203\" src=\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-1024x203.jpg\" alt=\"Find and Apply Banner\" class=\"wp-image-21795\" srcset=\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-1024x203.jpg 1024w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-672x133.jpg 672w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-1536x305.jpg 1536w, https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Find-and-Apply-Banner-2048x406.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full mobile-image\"><a href=\"https:\/\/internshala.com\/jobs\/?utm_source=is_blog&amp;utm_medium=difference-between-ctc-and-in-hand-salary&amp;utm_campaign=candidate-mobile-banner\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"356\" height=\"256\" src=\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2024\/01\/Job-Banner-for-candidates.jpg\" alt=\"Job Banner for candidates\" class=\"wp-image-21794\"\/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With the information provided above, it is clear that there is a vast difference between CTC and in-hand salary. By knowing about these differences in the salary amount, you can plan your monthly budget accordingly. Remember, the deductions are beneficial for you in the long run. For example, provident funds unlock financial benefits for your retirement.&nbsp;<\/p>\n\n\n\n<p>Did you find this blog informative? Share your opinion with us in the comments section below. Also, learn more about <a href=\"https:\/\/internshala.com\/blog\/salary-breakup-and-components\/\" target=\"_blank\" rel=\"noreferrer noopener\">salary breakup<\/a> to understand your salary structure better.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1707456288793\"><strong class=\"schema-faq-question\">1. <strong>Is CTC the same as in-hand salary?<\/strong><\/strong> <p class=\"schema-faq-answer\">CTC is not the same as in-hand salary. Cost-to-company or CTC is the salary package offered by the employer, whereas in-hand salary is the amount an employee receives after subtracting taxes and other deductions.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1707456301305\"><strong class=\"schema-faq-question\">2. <strong>How to calculate in-hand salary from CTC?<\/strong><\/strong> <p class=\"schema-faq-answer\">You can calculate in-hand salary by subtracting all the deductions like professional tax, income tax, PF contribution, etc. from your CTC. Alternatively, you can first calculate gross salary and subtract the deductions to determine your in-hand salary.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1707456313023\"><strong class=\"schema-faq-question\">3. <strong>How is CTC calculated using in-hand salary?<\/strong><\/strong> <p class=\"schema-faq-answer\">You can calculate your CTC by adding back the deductions and benefits to the in-hand salary. The major deductions you need to add to the in-hand salary include income tax, professional tax, and PF contribution. It is important to note that the CTC may vary depending on company policies.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1707456326114\"><strong class=\"schema-faq-question\">4. <strong>What is my CTC if my salary is \u20b925000?<\/strong><\/strong> <p class=\"schema-faq-answer\">Your CTC takes into account several factors like the in-hand salary and the direct and indirect benefits. You can follow the given steps to calculate your CTC:\u00a0<br\/><strong>* <\/strong>Let us assume your basic salary, HRA, and DA are 50%, 15%, and 10% of CTC respectively, EPF is 12% of your basic salary, income tax is 12%, and other benefits account for \u20b92000.\u00a0<br\/><strong>* <\/strong>First, we will take the value of CTC as x and calculate gross salary (basic salary+HRA+DA).\u00a0<br\/>Gross Salary = 0.5x + 0.15x + 0.10x = 0.75x<br\/><strong>* <\/strong>Next, we will find the value of x by subtracting gross salary, income tax, and EPF contribution from the in-hand salary.\u00a0<br\/>In-hand Salary = 0.75x \u2212 0.06x \u2212 0.12x = 0.57x<br\/>25000 = 0.57x<br\/>x = 25000\/0.57 = 43859.65<br\/><strong>* <\/strong>Finally, we will add other benefits to find CTC.\u00a0<br\/>43859.65 + 2000 = 45859.65\u00a0<br\/>Therefore, if your in-hand salary is \u20b925,000, your estimated CTC will be around \u20b945,859.\u00a0<br\/><\/p> <\/div> <\/div>\n<aside class=\"mashsb-container mashsb-main \"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">0<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Finternshala.com%2Fblog%2Fdifference-between-ctc-and-in-hand-salary%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Share&nbsp;on&nbsp;Facebook<\/span><\/a><a class=\"mashicon-subscribe mash-medium mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Get&nbsp;Your&nbsp;Dream&nbsp;Internship<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.42-->","protected":false},"excerpt":{"rendered":"<p>Are you beginning your professional journey soon? If yes, gaining knowledge about financial terms you will encounter several times becomes necessary. You must know that the CTC offered is not<\/p>\n","protected":false},"author":6498,"featured_media":20733,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[4317],"tags":[5177,5175,5179,5176,5174,5180,5178],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Difference Between CTC and In Hand Salary &amp; How to Calculate?<\/title>\n<meta name=\"description\" content=\"Understand the difference between CTC and in-hand salary with a definition and comparison table and learn how to calculate CTC and in-hand salary.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Difference Between CTC and In Hand Salary &amp; How to Calculate?\" \/>\n<meta property=\"og:description\" content=\"Understand the difference between CTC and in-hand salary with a definition and comparison table and learn how to calculate CTC and in-hand salary.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/\" \/>\n<meta property=\"og:site_name\" content=\"Internshala blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-01T04:41:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-05T10:25:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/11\/CTC-vs-In-Hand-Salary.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"780\" \/>\n\t<meta property=\"og:image:height\" content=\"510\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Shailja Kaushik\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shailja Kaushik\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/\"},\"author\":{\"name\":\"Shailja Kaushik\",\"@id\":\"https:\/\/internshala.com\/blog\/#\/schema\/person\/e9d693573cfd7df9145f7f1a0f6e523b\"},\"headline\":\"Difference Between CTC and In-Hand Salary [How to Calculate it?]\",\"datePublished\":\"2023-11-01T04:41:46+00:00\",\"dateModified\":\"2024-03-05T10:25:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/\"},\"wordCount\":1520,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/internshala.com\/blog\/#organization\"},\"keywords\":[\"ctc and in hand\",\"ctc and in hand salary difference\",\"ctc vs in hand salary\",\"difference between\",\"difference between ctc and in hand salary\",\"difference between salary and ctc\",\"what is ctc and in hand salary\"],\"articleSection\":[\"Salary\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#respond\"]}]},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/\",\"url\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/\",\"name\":\"Difference Between CTC and In Hand Salary & How to Calculate?\",\"isPartOf\":{\"@id\":\"https:\/\/internshala.com\/blog\/#website\"},\"datePublished\":\"2023-11-01T04:41:46+00:00\",\"dateModified\":\"2024-03-05T10:25:20+00:00\",\"description\":\"Understand the difference between CTC and in-hand salary with a definition and comparison table and learn how to calculate CTC and in-hand salary.\",\"breadcrumb\":{\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456288793\"},{\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456301305\"},{\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456313023\"},{\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456326114\"}],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/internshala.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Job Tips\",\"item\":\"https:\/\/internshala.com\/blog\/job-tips\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Salary\",\"item\":\"https:\/\/internshala.com\/blog\/job-tips\/salary\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Difference Between CTC and In-Hand Salary [How to Calculate it?]\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/internshala.com\/blog\/#website\",\"url\":\"https:\/\/internshala.com\/blog\/\",\"name\":\"Internshala blog\",\"description\":\"Your favourite senior outside college\",\"publisher\":{\"@id\":\"https:\/\/internshala.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/internshala.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/internshala.com\/blog\/#organization\",\"name\":\"Internshala blog\",\"url\":\"https:\/\/internshala.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/internshala.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/08\/LOGO-1.png\",\"contentUrl\":\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/08\/LOGO-1.png\",\"width\":112,\"height\":31,\"caption\":\"Internshala blog\"},\"image\":{\"@id\":\"https:\/\/internshala.com\/blog\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/internshala.com\/blog\/#\/schema\/person\/e9d693573cfd7df9145f7f1a0f6e523b\",\"name\":\"Shailja Kaushik\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/internshala.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/09\/Shailja-Kaushik-96x96.jpg\",\"contentUrl\":\"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/09\/Shailja-Kaushik-96x96.jpg\",\"caption\":\"Shailja Kaushik\"},\"description\":\"Shailja Kaushik has been an Editor with Internshala since March 2023. She loves creative writing and experimenting with different forms of writing. She has explored different genres by working with journals and radio stations. She has also published her poems and nano tales in various anthologies. She graduated at the top of her class with Bachelor's in English and recently completed her Master's in English from the University of Delhi. Her experiments with writing continue on her literary blog.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/shailja-kaushik\/\"],\"url\":\"https:\/\/internshala.com\/blog\/author\/shailja\/\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456288793\",\"position\":1,\"url\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456288793\",\"name\":\"1. Is CTC the same as in-hand salary?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"CTC is not the same as in-hand salary. Cost-to-company or CTC is the salary package offered by the employer, whereas in-hand salary is the amount an employee receives after subtracting taxes and other deductions.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456301305\",\"position\":2,\"url\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456301305\",\"name\":\"2. How to calculate in-hand salary from CTC?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"You can calculate in-hand salary by subtracting all the deductions like professional tax, income tax, PF contribution, etc. from your CTC. Alternatively, you can first calculate gross salary and subtract the deductions to determine your in-hand salary.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456313023\",\"position\":3,\"url\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456313023\",\"name\":\"3. How is CTC calculated using in-hand salary?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"You can calculate your CTC by adding back the deductions and benefits to the in-hand salary. The major deductions you need to add to the in-hand salary include income tax, professional tax, and PF contribution. It is important to note that the CTC may vary depending on company policies.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456326114\",\"position\":4,\"url\":\"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456326114\",\"name\":\"4. What is my CTC if my salary is \u20b925000?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Your CTC takes into account several factors like the in-hand salary and the direct and indirect benefits. You can follow the given steps to calculate your CTC:\u00a0<br\/><strong>* <\/strong>Let us assume your basic salary, HRA, and DA are 50%, 15%, and 10% of CTC respectively, EPF is 12% of your basic salary, income tax is 12%, and other benefits account for \u20b92000.\u00a0<br\/><strong>* <\/strong>First, we will take the value of CTC as x and calculate gross salary (basic salary+HRA+DA).\u00a0<br\/>Gross Salary = 0.5x + 0.15x + 0.10x = 0.75x<br\/><strong>* <\/strong>Next, we will find the value of x by subtracting gross salary, income tax, and EPF contribution from the in-hand salary.\u00a0<br\/>In-hand Salary = 0.75x \u2212 0.06x \u2212 0.12x = 0.57x<br\/>25000 = 0.57x<br\/>x = 25000\/0.57 = 43859.65<br\/><strong>* <\/strong>Finally, we will add other benefits to find CTC.\u00a0<br\/>43859.65 + 2000 = 45859.65\u00a0<br\/>Therefore, if your in-hand salary is \u20b925,000, your estimated CTC will be around \u20b945,859.\u00a0<br\/>\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Difference Between CTC and In Hand Salary & How to Calculate?","description":"Understand the difference between CTC and in-hand salary with a definition and comparison table and learn how to calculate CTC and in-hand salary.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/","og_locale":"en_US","og_type":"article","og_title":"Difference Between CTC and In Hand Salary & How to Calculate?","og_description":"Understand the difference between CTC and in-hand salary with a definition and comparison table and learn how to calculate CTC and in-hand salary.","og_url":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/","og_site_name":"Internshala blog","article_published_time":"2023-11-01T04:41:46+00:00","article_modified_time":"2024-03-05T10:25:20+00:00","og_image":[{"width":780,"height":510,"url":"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/11\/CTC-vs-In-Hand-Salary.jpg","type":"image\/jpeg"}],"author":"Shailja Kaushik","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Shailja Kaushik","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#article","isPartOf":{"@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/"},"author":{"name":"Shailja Kaushik","@id":"https:\/\/internshala.com\/blog\/#\/schema\/person\/e9d693573cfd7df9145f7f1a0f6e523b"},"headline":"Difference Between CTC and In-Hand Salary [How to Calculate it?]","datePublished":"2023-11-01T04:41:46+00:00","dateModified":"2024-03-05T10:25:20+00:00","mainEntityOfPage":{"@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/"},"wordCount":1520,"commentCount":0,"publisher":{"@id":"https:\/\/internshala.com\/blog\/#organization"},"keywords":["ctc and in hand","ctc and in hand salary difference","ctc vs in hand salary","difference between","difference between ctc and in hand salary","difference between salary and ctc","what is ctc and in hand salary"],"articleSection":["Salary"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#respond"]}]},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/","url":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/","name":"Difference Between CTC and In Hand Salary & How to Calculate?","isPartOf":{"@id":"https:\/\/internshala.com\/blog\/#website"},"datePublished":"2023-11-01T04:41:46+00:00","dateModified":"2024-03-05T10:25:20+00:00","description":"Understand the difference between CTC and in-hand salary with a definition and comparison table and learn how to calculate CTC and in-hand salary.","breadcrumb":{"@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456288793"},{"@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456301305"},{"@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456313023"},{"@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456326114"}],"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/internshala.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Job Tips","item":"https:\/\/internshala.com\/blog\/job-tips\/"},{"@type":"ListItem","position":3,"name":"Salary","item":"https:\/\/internshala.com\/blog\/job-tips\/salary\/"},{"@type":"ListItem","position":4,"name":"Difference Between CTC and In-Hand Salary [How to Calculate it?]"}]},{"@type":"WebSite","@id":"https:\/\/internshala.com\/blog\/#website","url":"https:\/\/internshala.com\/blog\/","name":"Internshala blog","description":"Your favourite senior outside college","publisher":{"@id":"https:\/\/internshala.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/internshala.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/internshala.com\/blog\/#organization","name":"Internshala blog","url":"https:\/\/internshala.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/internshala.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/08\/LOGO-1.png","contentUrl":"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/08\/LOGO-1.png","width":112,"height":31,"caption":"Internshala blog"},"image":{"@id":"https:\/\/internshala.com\/blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/internshala.com\/blog\/#\/schema\/person\/e9d693573cfd7df9145f7f1a0f6e523b","name":"Shailja Kaushik","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/internshala.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/09\/Shailja-Kaushik-96x96.jpg","contentUrl":"https:\/\/internshala.com\/blog\/wp-content\/uploads\/2023\/09\/Shailja-Kaushik-96x96.jpg","caption":"Shailja Kaushik"},"description":"Shailja Kaushik has been an Editor with Internshala since March 2023. She loves creative writing and experimenting with different forms of writing. She has explored different genres by working with journals and radio stations. She has also published her poems and nano tales in various anthologies. She graduated at the top of her class with Bachelor's in English and recently completed her Master's in English from the University of Delhi. Her experiments with writing continue on her literary blog.","sameAs":["https:\/\/www.linkedin.com\/in\/shailja-kaushik\/"],"url":"https:\/\/internshala.com\/blog\/author\/shailja\/"},{"@type":"Question","@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456288793","position":1,"url":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456288793","name":"1. Is CTC the same as in-hand salary?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"CTC is not the same as in-hand salary. Cost-to-company or CTC is the salary package offered by the employer, whereas in-hand salary is the amount an employee receives after subtracting taxes and other deductions.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456301305","position":2,"url":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456301305","name":"2. How to calculate in-hand salary from CTC?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"You can calculate in-hand salary by subtracting all the deductions like professional tax, income tax, PF contribution, etc. from your CTC. Alternatively, you can first calculate gross salary and subtract the deductions to determine your in-hand salary.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456313023","position":3,"url":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456313023","name":"3. How is CTC calculated using in-hand salary?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"You can calculate your CTC by adding back the deductions and benefits to the in-hand salary. The major deductions you need to add to the in-hand salary include income tax, professional tax, and PF contribution. It is important to note that the CTC may vary depending on company policies.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456326114","position":4,"url":"https:\/\/internshala.com\/blog\/difference-between-ctc-and-in-hand-salary\/#faq-question-1707456326114","name":"4. What is my CTC if my salary is \u20b925000?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Your CTC takes into account several factors like the in-hand salary and the direct and indirect benefits. You can follow the given steps to calculate your CTC:\u00a0<br\/><strong>* <\/strong>Let us assume your basic salary, HRA, and DA are 50%, 15%, and 10% of CTC respectively, EPF is 12% of your basic salary, income tax is 12%, and other benefits account for \u20b92000.\u00a0<br\/><strong>* <\/strong>First, we will take the value of CTC as x and calculate gross salary (basic salary+HRA+DA).\u00a0<br\/>Gross Salary = 0.5x + 0.15x + 0.10x = 0.75x<br\/><strong>* <\/strong>Next, we will find the value of x by subtracting gross salary, income tax, and EPF contribution from the in-hand salary.\u00a0<br\/>In-hand Salary = 0.75x \u2212 0.06x \u2212 0.12x = 0.57x<br\/>25000 = 0.57x<br\/>x = 25000\/0.57 = 43859.65<br\/><strong>* <\/strong>Finally, we will add other benefits to find CTC.\u00a0<br\/>43859.65 + 2000 = 45859.65\u00a0<br\/>Therefore, if your in-hand salary is \u20b925,000, your estimated CTC will be around \u20b945,859.\u00a0<br\/>","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/posts\/20730"}],"collection":[{"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/users\/6498"}],"replies":[{"embeddable":true,"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/comments?post=20730"}],"version-history":[{"count":0,"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/posts\/20730\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/media\/20733"}],"wp:attachment":[{"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/media?parent=20730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/categories?post=20730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/internshala.com\/blog\/wp-json\/wp\/v2\/tags?post=20730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}