I am starting a new job in India
Your offer letter has many parts, like CTC, HRA and PF. This page explains each one simply and shows what it means for you. It takes about 15 minutes.
- 1
See your monthly salary
CTC (cost to company) is the total yearly cost of you to your employer, not your in-hand pay. Type your yearly gross salary to see monthly, weekly and hourly figures.
How much do I earn per hour, month or year?
Break down my salary →Tip: Your CTC may include employer PF, gratuity and bonus that you do not get every month.
- 2
Pick the better tax regime
India has a new and an old tax regime. Type your salary and any deductions to see which one costs you less.
How much income tax will I pay, and which regime is better?
Compare my tax →Tip: In FY 2026-27 the new regime has no tax on salary up to Rs 12.75 lakh, thanks to the Rs 75,000 standard deduction and rebate.
- 3
Check your HRA tax saving
HRA (house rent allowance) is money in your salary for rent. Part of it can be tax-free in the old regime. Type your basic pay, HRA and rent.
How much of my house rent allowance is tax-free?
Check my HRA →Tip: HRA exemption is not available in the new regime. Keep rent receipts if you choose the old one.
- 4
See how your PF grows
EPF (employees' provident fund) is a retirement fund. Usually 12% of your basic pay goes in, and your employer adds too. Type your basic pay and age.
How much PF money will I have when I retire?
Grow my PF →Tip: When you change jobs, transfer your old PF to your new account using your UAN instead of withdrawing it.
- 5
Know your gratuity
Gratuity is a lump sum your employer pays when you leave after many years. Type your last basic pay and years of service.
How much gratuity will I get when I leave my job?
Find my gratuity →Tip: Gratuity usually needs about 5 years of continuous service with the same employer. Check your company rules.
- 6
Plan your monthly budget
Now split your in-hand salary into needs, wants and savings. Type the money you take home each month.
How should I split my income between needs, wants and savings?
Make my budget →Tip: Start a monthly SIP or RD on salary day so saving happens first.
Questions people ask
What is the difference between CTC and in-hand salary?
CTC is the total your employer spends on you in a year, including employer PF, gratuity, insurance and bonus. In-hand salary is what reaches your bank each month after your PF, professional tax and income tax are taken out.
Which tax regime is better for salaried people in FY 2026-27?
The new regime has lower rates and no tax up to Rs 12 lakh of taxable income, but few deductions. The old regime can be better if you claim large deductions like HRA, 80C and home loan interest. Compare both with your own numbers.
How much PF is deducted from salary?
Usually 12% of your basic pay plus DA goes to EPF from your side, and your employer adds a matching 12%, part of which goes to the pension scheme (EPS). Some employers cap it at a set wage limit.
When do I get gratuity?
Gratuity is usually paid when you leave a job after at least 5 years of continuous service. A common formula is 15/26 of your last monthly basic plus DA, times your years of service.