Enter two offers and instantly see which one puts more money in your pocket every month. Covers in-hand salary, annual guaranteed pay, income tax (new and old regime), PF, and professional tax.
This calculator compares two job offers on fixed monthly in-hand pay. For each offer: gross = CTC minus employer PF; fixed in-hand = gross minus variable pay, employee PF (12% of Basic), professional tax and income tax, divided by 12. The offer with the higher fixed in-hand wins; variable pay and joining bonus are shown separately.
▮ Offer A
Performance bonus / incentive
One-time, not recurring
For HRA exemption (leave 0 if no rent)
For HRA exemption from tax year 2026-27, the 50% cities are Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Pune, Hyderabad and Ahmedabad
Sample offers shown (A: ₹12 lakh in Maharashtra; B: ₹14 lakh with 10% variable in Karnataka). Change them to compare your own.
Offer A Breakdown
Offer B Breakdown
Full Comparison
Item
Offer A
Offer B
Heads up: These estimates use simplified assumptions. Employee PF is calculated at 12% of basic salary (actual; not capped at the Rs 25,000 wage ceiling unless your offer letter says so). Tax uses the applicable regime slab rates for tax year 2026-27. Old-regime estimates assume standard 80C deduction as entered plus employee PF. Gratuity, ESIC, LTA, and food coupons are not modelled. For precise numbers, consult your company payroll team. If you spot an error, email [email protected].
How to Compare Job Offers in India
A higher CTC does not always mean a higher salary in your bank account. The structure of the offer, your city, tax regime, and variable pay percentage all change what you actually take home every month. Here is how to read an offer correctly.
Step 1: Look at Fixed vs. Variable Pay
Every CTC has two buckets: fixed and variable. Fixed pay (basic, HRA, special allowance) is guaranteed every month. Variable pay (performance bonus, incentive) is paid quarterly or annually and depends on hitting targets. A Rs 15 LPA offer with 30% variable is not the same as a Rs 15 LPA offer with 0% variable. The first one guarantees only Rs 10.5 LPA fixed; if targets are missed, variable pay may be partially or fully withheld.
Rule of thumb: compare the fixed annual salary first. Use total CTC only after confirming how the variable component works and whether it has historically been paid at 100%.
Step 2: Understand How Basic Salary Affects Everything
The basic salary percentage drives several downstream numbers:
Provident Fund (PF): Both you and your employer contribute 12% of basic salary each. A higher basic means a larger PF deduction from your monthly take-home, but also a larger corpus. EPFO kept the interest rate at 8.25% for 2025-26.
Gratuity: Calculated on basic + DA. A higher basic increases your gratuity benefit after 5 years of service.
HRA exemption: Under the old tax regime, HRA exemption is based on basic salary. Higher basic = higher potential tax saving on rent.
Most companies set basic at 35% to 50% of CTC. A very low basic (20 to 25%) minimises PF, which means higher in-hand now but lower retirement corpus and lower gratuity later.
Step 3: New Regime vs. Old Regime for Tax Year 2026-27
The new tax regime is the default for salaried employees. From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act and uses “tax year” instead of FY and AY. For tax year 2026-27, Budget 2026 made no change to the new regime slabs (Section 202, earlier Section 115BAC). Key facts:
Annual Taxable Income (New Regime)
Tax Rate
Up to Rs 4,00,000
0%
Rs 4,00,001 to Rs 8,00,000
5%
Rs 8,00,001 to Rs 12,00,000
10%
Rs 12,00,001 to Rs 16,00,000
15%
Rs 16,00,001 to Rs 20,00,000
20%
Rs 20,00,001 to Rs 24,00,000
25%
Above Rs 24,00,000
30%
Standard deduction: Rs 75,000. Rebate under Section 156 (earlier Section 87A): up to Rs 60,000 if taxable income is Rs 12,00,000 or below, with marginal relief just above. This makes income up to Rs 12,75,000 effectively tax-free for salaried individuals under the new regime.
When does the old regime still win? Only when your HRA exemption, 80C deductions (PF plus PPF plus ELSS), and home loan interest on a self-occupied house (Section 24(b) of the 1961 Act) add up to a large amount, often several lakh rupees, so that the old regime cuts taxable income below the new regime figure. The break-even point depends on your salary. Use the calculator above with both regime options to see which one saves more for each specific offer.
Step 4: Professional Tax Reduces Take-Home
Professional tax is a state-level deduction capped at Rs 2,500 per year constitutionally. It matters when comparing offers in different cities or states. For example, a candidate accepting an offer in Mumbai pays up to Rs 2,500/year in PT; the same candidate in Gurugram pays zero (Haryana has no professional tax). Over a year that is not a huge difference, but it is worth factoring in.
Step 5: Treat the Joining Bonus as a Separate Category
A joining bonus is taxable as salary income in the year it is paid. It is not part of the recurring salary structure. When comparing two offers, strip out the joining bonus and compare recurring in-hand first. Then evaluate the joining bonus separately, keeping two things in mind: (1) it is taxed at your marginal rate, so a Rs 3 lakh joining bonus at 30% slab rate nets only Rs 2.1 lakh, and (2) most joining bonuses come with a clawback: if you leave before 12 to 24 months, you must return the full amount (sometimes the pre-tax amount, which is worse).
Step 6: Total Annual Value Including One-Time Items
After comparing recurring in-hand, add one-time items in a separate column: joining bonus (net of tax), ESOP vesting value (at current valuation, discounted for risk), and relocation allowance. These improve first-year value but should not be the primary reason to choose an offer.
Worked Example: the Sample Offers
Item (annual unless stated)
Offer A
Offer B
CTC
Rs 12,00,000
Rs 14,00,000
Basic (40% of CTC)
Rs 4,80,000
Rs 5,60,000
Employer PF (12% of Basic)
Rs 57,600
Rs 67,200
Gross salary (CTC minus employer PF)
Rs 11,42,400
Rs 13,32,800
Variable pay (10% for B)
Rs 0
Rs 1,40,000
Income tax, new regime (taxable = gross minus Rs 75,000)
Rs 0
Rs 60,112
Employee PF + professional tax
Rs 60,100
Rs 69,700
Monthly fixed in-hand
Rs 90,192
Rs 88,582
Offer B has the higher CTC, but Offer A pays about Rs 1,610 more each month in fixed in-hand because B’s extra money sits in variable pay and pushes taxable income past Rs 12 lakh. If B’s variable is paid in full, its yearly in-hand is higher, so check how reliably that bonus has been paid.
No. Two offers with the same CTC can result in meaningfully different in-hand amounts because of the basic salary percentage, variable pay share, employer PF contribution method, professional tax (which varies by state), and the tax regime chosen. Always compute the actual take-home rather than comparing CTC figures alone.
Variable pay, performance bonuses, and incentives are fully taxable as salary income under both the new and old tax regimes in India. They are added to your fixed salary and taxed at your applicable slab rate. If a large bonus pushes you from 15% to 20% slab, the additional amount is taxed at 20% (plus 4% cess). The tool estimates tax on the assumption that the full variable pay is received in the financial year.
A joining bonus is a one-time payment and is fully taxable as salary income. Compare offers first without the joining bonus to understand the recurring salary. Then factor in the joining bonus separately, keeping in mind: (1) it will be taxed at your marginal rate, (2) most joining bonuses have a clawback clause of 12 to 24 months, and (3) it inflates year-one income but does not compound for future hikes.
For salaries up to Rs 12.75 lakh per year, the new regime is almost always better: you pay zero income tax. For higher salaries, the answer depends on your deductions. If your HRA exemption, 80C investments, and home loan interest together are large, often several lakh rupees, the old regime can reduce your tax bill below the new regime; the break-even depends on salary. Use this tool to input both regimes for each offer and compare the result.
Guaranteed pay (or fixed pay) is the amount you receive every month regardless of performance: Basic plus HRA plus Special Allowances. Total CTC includes variable pay (performance-linked), employer PF (a cost, not a salary credit), gratuity accrual, group insurance premiums, and any one-time items. Always compare guaranteed pay for an accurate comparison of stable monthly income.
Professional tax (PT) is a state-level tax on salaried employees, capped at Rs 2,500 per year by the Indian constitution. It is deducted by your employer from your monthly salary and deposited with the state government. States that levy PT include Maharashtra, Karnataka (revised threshold Rs 25,000/month from April 2025), Tamil Nadu, West Bengal, Gujarat, Andhra Pradesh, Telangana, and Kerala. Delhi, Haryana, Uttar Pradesh, Rajasthan, and several other states do not levy professional tax.
Both employee and employer contribute 12% of basic salary per month to the Employee Provident Fund (EPF). The statutory wage ceiling for mandatory EPF was raised from Rs 15,000 to Rs 25,000 a month on 17 September 2026 (a maximum of Rs 3,000 each per month on the ceiling), but many companies contribute on the actual basic salary. This tool calculates PF on actual basic salary. Employee PF is deducted from your in-hand salary; employer PF is a cost included in your CTC but does not appear on your payslip as income.
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Disclaimer: Formulas are based on tax year 2026-27 rules under the Income-tax Act, 2025 (new and old regime slabs, Section 156 rebate) and state professional tax schedules as of October 2026. Values are estimates for general guidance only and do not constitute financial or tax advice.