What take-home pay means
Take-home pay is the money that actually lands in your bank account on salary day. It is what is left of your gross salary after your own deductions. People also call it in-hand salary, net pay or net salary.
The usual deductions are your PF (Provident Fund, a retirement savings account), professional tax in some states and TDS (income tax your employer cuts and pays to the government). Some payslips have more lines, such as a canteen charge or a salary advance being paid back.
Take-home is the smallest of the salary numbers. CTC (cost to company) is the biggest, and gross salary sits in between. Our pages on CTC and gross salary explain those two.
Arjun’s payslip
Arjun, 31, works in Pune, Maharashtra. His gross salary is ₹1,20,000 a month, with basic pay of ₹30,000. PF is 12% of basic. Tax is worked out under the new regime for Tax Year 2026–27, and his employer spreads it evenly over 12 months. Arjun is a made-up example.
| Per month | Most months | February |
|---|---|---|
| Gross salary | ₹1,20,000 | ₹1,20,000 |
| − His own PF (12% of basic) | ₹3,600 | ₹3,600 |
| − Professional tax (Maharashtra) | ₹200 | ₹300 |
| − TDS | ₹7,345 | ₹7,345 |
| = Take-home | ₹1,08,855 | ₹1,08,755 |
His yearly tax is ₹88,140, including the 4% cess (an extra charge on the tax). Over the year he takes home ₹13,06,160. That is about 91% of his gross.
Calculated by Paisavy with the site’s salary and tax maths, rounded to the nearest rupee.
February is ₹100 lower because Maharashtra charges ₹300 of professional tax that month instead of ₹200. Small differences like this are normal. They are not a payroll mistake.
Why take-home can change
Your take-home is not fixed for the whole year. It can move when:
- you get a raise or a bonus, because TDS is worked out again for the rest of the year;
- you take unpaid leave (often shown as “loss of pay” or LOP);
- arrears (late pay for earlier months) are added;
- a new deduction starts, for example a salary advance being recovered;
- your state’s professional tax has a different amount in one month, as in Arjun’s February.
A bonus month can look large, but more tax may be cut in the same month or in later ones.
Where you see it
On a payslip, take-home is the last line, often called “net pay” or “net salary”. Your bank statement shows the same amount as a salary credit. Offer letters rarely show it, so ask HR for the expected monthly take-home before you accept.
Common mistakes
- Planning on CTC ÷ 12. That number includes money you never receive each month.
- Treating one unusual month as normal. Use a regular month, without a bonus or arrears.
- Forgetting that PF is still your money. It is cut from your pay but goes to your retirement savings.
What to check
- Find “net pay” on your last payslip and match it with your bank credit.
- Add up the deductions and check that gross minus deductions gives the same figure.
- Build your budget, EMIs and savings on take-home, not on gross or CTC.
- If take-home drops without a clear reason, ask HR which line changed.
To work out your own take-home from a CTC or a monthly gross, use the Salary calculator. Your numbers stay on your device.