Salary Breakup Calculator

How Salary Breakup is Calculated in India

Salary breakup explains how your Cost to Company (CTC) is divided into various salary components that affect your monthly take-home pay, tax liability, and long-term benefits such as provident fund and gratuity.

Employers in India follow a standard salary structure, with some variation depending on company policy, role, and industry. This calculator uses commonly accepted assumptions to give you an accurate estimate.

• Basic Salary: Typically 40%–50% of fixed CTC. Many statutory benefits such as PF and gratuity are calculated as a percentage of basic salary.
• House Rent Allowance (HRA): Commonly 40% of basic salary. HRA can be partially tax-exempt depending on rent paid, salary, and city of residence.
• Provident Fund (PF): Usually 12% of basic salary contributed by the employer and 12% deducted from the employee’s salary. Employer PF is part of CTC, while employee PF reduces take-home pay.
• Gratuity: An employer-funded long-term benefit (approximately 4.81% of basic salary) payable after completing at least 5 years of service. It is included in CTC but not paid monthly.
• Special Allowance: The remaining amount after allocating fixed components such as basic salary, HRA, PF, and gratuity. This component ensures that the total matches the declared CTC.
• Bonus & Variable Pay: Performance-linked or annual payments that are part of CTC but are usually paid quarterly or yearly and do not form part of regular monthly salary.
• Gross Salary: The sum of basic salary, HRA, and allowances before deductions such as employee PF and income tax.
• Take-Home Salary: The amount you actually receive in hand after deducting employee PF and applicable taxes. This calculator shows an approximate take-home before tax unless stated otherwise.

Note: This salary breakup is an estimate based on standard Indian payroll practices. Actual salary components may vary depending on company policies, benefits offered, and individual tax planning.