Salary Breakdown Calculator
Break your CTC into Basic, HRA, PF, allowances and monthly take-home
tuneCTC Details
functions Salary Structure
Gross: CTC − Employer PF (12% of Basic)
HRA: 50% of Basic (metro) / 40% (non-metro)
Employee PF: 12% of Basic (deducted)
Special Allowance = Gross − Basic − HRA
Monthly Take-Home
₹—
After PF and Professional Tax
Annual In-Hand
₹—
Income tax not included
Monthly Salary Components
| Component | Monthly | Annual |
|---|---|---|
| EARNINGS | ||
| Basic Salary | — | — |
| HRA | — | — |
| Special Allowance | — | — |
| Gross Salary | — | — |
| DEDUCTIONS | ||
| Employee PF (12%) | — | — |
| Professional Tax | — | — |
| Total Deductions | — | — |
| Net Take-Home | — | — |
* Employer PF (= —/month) is in CTC but not in gross. Income tax not included.
Salary Distribution
What is a Salary Breakdown Calculator?
A CTC (Cost to Company) includes more than just your take-home salary. It comprises basic pay, HRA, special allowance, PF contributions, gratuity provisioning, LTA, medical allowance, and sometimes ESOPs or performance bonuses. Understanding your CTC breakdown helps you plan taxes and maximise in-hand pay.
This calculator splits your annual CTC into individual components following standard Indian corporate payroll structures — breaking down employer vs. employee contributions, exemptions, and taxable components.
lightbulb Example Calculation
Scenario: Mr. Rahul Singh, 29-year-old Senior Software Engineer at TCS, Hyderabad — Annual CTC ₹12 Lakhs, wants to understand his take-home salary
1Basic = 40% of CTC = ₹4,80,000/yr (₹40,000/month) | HRA = 50% of Basic = ₹2,40,000/yr
2Employee PF = 12% of Basic = ₹57,600/yr | Gratuity provision = 4.81% of Basic = ₹23,088/yr
3Take-home ≈ CTC − PF − Gratuity − Tax = ₹12L − ₹57,600 − ₹23,088 − ~₹60,000 tax ≈ ₹9.19 Lakhs/yr (₹76,583/month)
✓ Result: Rahul's in-hand salary is approximately ₹76,583/month against a ₹12 LPA CTC.
help_outlineHow to Use the Salary Breakdown Calculator
- Enter your Annual CTC — the total cost to company as mentioned in your offer letter or appraisal document.
- Select the basic salary percentage — 40%, 50%, or 60% of CTC. Check your offer letter; if unspecified, 50% is the most common industry standard for IT and finance roles.
- Select your city type — Metro (Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Kolkata) gives 50% HRA; Non-metro gives 40% HRA on basic salary.
- Enter your professional tax — typically ₹200/month in Maharashtra, Karnataka, Tamil Nadu and several other states. Enter 0 if your state does not levy professional tax.
- Click Calculate Breakdown to see a complete monthly and annual salary component table — Basic, HRA, Special Allowance, Employee PF, and net take-home.
Benefits
- Instantly understand where your CTC goes — how much is Basic, HRA, PF, and take-home
- Compare 40% vs 50% vs 60% basic — higher basic means more PF deduction but also better gratuity and HRA exemption
- Employer PF shown separately — it's in CTC but not in gross pay
- Verify new offer letters before accepting by cross-checking computed components
- Foundation for tax planning — identifies which salary components are taxable vs tax-exempt
Key Terms
- CTC (Cost to Company)
- Total annual cost of the employee to employer — includes gross salary, employer PF (12% of basic), gratuity provision (4.81% of basic), and other benefits.
- Basic Salary
- The core salary component — PF, HRA, gratuity, and many allowances are a percentage of basic. Higher basic reduces take-home but increases PF savings and gratuity.
- HRA (House Rent Allowance)
- Employer-provided allowance for accommodation — 50% of basic in metro cities, 40% in non-metros. Partially or fully exempt from tax if you pay rent.
- Special Allowance
- The residual salary component after all other heads are allocated — fully taxable, with no exemption available.
- Professional Tax
- A state-level tax deducted from salary — maximum ₹2,500/year. Levied in Maharashtra, Karnataka, Telangana, West Bengal, and other states; nil in Delhi, Rajasthan, and several others.
quizFrequently Asked Questions
Why is my take-home much lower than my CTC?
CTC includes costs the employer bears on your behalf that you never see in your bank account: employer's PF contribution (12% of basic), gratuity provision (4.81% of basic), and sometimes group insurance premiums. Additionally, deductions from gross salary — employee PF (12% of basic), professional tax, and TDS — reduce your take-home further. Typically, take-home is 70–80% of CTC for mid-level roles, and lower for higher earners with more TDS.
Should I prefer a higher or lower basic salary?
Higher basic increases your gratuity (gratuity = 15/26 × basic × years of service) and PF corpus (12% of basic goes to EPF). However, it also means higher mandatory PF deductions, reducing take-home. Lower basic increases take-home but reduces long-term retirement benefits. The optimal choice depends on your financial situation: if you value liquidity, choose lower basic; if you value long-term savings and gratuity, a higher basic percentage is better.
What is the difference between gross salary and CTC?
Gross Salary = CTC − Employer PF − Gratuity provision − Other employer benefits. It's the salary before employee-side deductions (employee PF, professional tax, TDS). Net take-home = Gross Salary − Employee PF − Professional Tax − TDS. CTC is always the highest number, gross salary is the middle, and net take-home is what you receive. Always clarify which figure is being offered when discussing compensation.
How does the HRA exemption work in salary breakdown?
HRA in your salary is first an allowance received (taxable by default). If you pay rent, you can claim exemption under Section 10(13A) — the exemption is the minimum of: (a) actual HRA received, (b) rent paid minus 10% of basic salary, or (c) 50% of basic (metro) or 40% (non-metro). The exempt portion reduces your taxable income; the balance is taxed as salary. Use our HRA Exemption Calculator for the precise exempt amount.
Is professional tax the same across all states?
No — professional tax rates and applicability differ by state. Maharashtra and Karnataka charge ₹200/month (₹2,400/year, which is close to the constitutional maximum of ₹2,500). West Bengal, Tamil Nadu, Andhra Pradesh, and Telangana also levy professional tax. Delhi, Haryana, Rajasthan, Uttar Pradesh, and most northern states do not levy professional tax at all. Always check your state's slab before entering this figure.
Can I negotiate my salary components while keeping the total CTC the same?
Yes — many companies allow employees to customise the salary structure through "flexible benefit plans" (FBPs). For example, you can choose a higher LTA (Leave Travel Allowance), fuel reimbursement, or book allowance — all tax-advantaged components — in place of taxable special allowance, while keeping total CTC the same. Optimising these components can save ₹10,000–₹30,000+ in taxes annually. Ask your HR about FBP options at the time of joining or during appraisal.