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Salary Breakup Calculator

Calculate your in-hand salary from CTC with detailed component breakdown.

CTC Details
Salary Structure (%)
Typically 40-50% of CTC
% of Basic (40-60%)
Additional Inputs
For HRA exemption calculation
Annual CTC
₹0
Monthly In-Hand
₹0
Annual In-Hand
₹0
Total Deductions
₹0
EPF (Employee)
₹0
Professional Tax
₹0
Income Tax
₹0
Salary Components Breakdown
Monthly Breakdown
Annual Breakdown
Salary Distribution
Employer Contributions
Component Amount (Monthly) Amount (Annual)
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Understanding CTC and Salary Breakup

CTC (Cost to Company) is the total amount a company spends on an employee annually. It includes your gross salary, benefits, EPF contributions, gratuity, bonuses, and other perks. However, your in-hand salary (take-home pay) is significantly lower due to various deductions.

Our Salary Breakup Calculator helps you understand exactly how much you'll receive in your bank account from your CTC, with detailed breakdowns of all components and deductions.

CTC Components Explained

1. Basic Salary

Percentage: 40-50% of CTC

What it is: The fixed component of your salary on which other benefits like HRA, EPF, and gratuity are calculated.

Impact: Higher basic means higher EPF and retirement benefits but lower in-hand salary.

Example: For ₹12 lakhs CTC with 40% basic = ₹4.8 lakhs basic salary

2. HRA (House Rent Allowance)

Percentage: 40-60% of basic salary

Tax Benefit: Partially or fully exempt if you pay rent

Calculation: Minimum of:

Example: Basic ₹40,000/month, HRA ₹20,000/month, Rent ₹15,000/month (Metro)

3. Special Allowance

What it is: Balancing component to make up the CTC

Tax Treatment: Fully taxable

Includes: Conveyance, medical, LTA, performance bonus

4. EPF (Employee Provident Fund)

Employee Contribution: 12% of basic salary

Employer Contribution: 12% of basic salary (part of CTC)

Benefits:

Example: Basic ₹40,000/month → EPF = ₹4,800/month (₹57,600/year)

5. Gratuity

Percentage: 4.81% of basic salary

Eligibility: After completing 5 years of service

Calculation: (Basic × Years of Service × 15) / 26

Tax Exemption: Up to ₹20 lakhs

Example: Basic ₹40,000/month → Gratuity provision = ₹1,924/month

Salary Deductions Explained

1. EPF Deduction (12%)

2. Professional Tax

State-wise variation:

3. Income Tax (TDS)

Calculated based on your total taxable income using new or old tax regime.

New Regime (FY 2025-26):

Standard Deduction: ₹75,000 (new regime)

CTC vs Gross Salary vs In-Hand Salary

Component CTC Gross Salary In-Hand Salary
Basic Salary ✓ ✓ ✓
HRA ✓ ✓ ✓
Special Allowance ✓ ✓ ✓
Employer EPF (12%) ✓ ✗ ✗
Gratuity ✓ ✗ ✗
Employee EPF (12%) ✗ Deducted ✗
Professional Tax ✗ Deducted ✗
Income Tax ✗ Deducted ✗

Salary Structure Examples

Example 1: ₹6 Lakhs CTC

Example 2: ₹12 Lakhs CTC

Example 3: ₹20 Lakhs CTC

How to Negotiate Better Salary Structure

1. Optimize Basic Salary

2. Maximize Tax-Free Components

3. Flexible Benefits

Frequently Asked Questions

Why is my in-hand salary much lower than CTC?
Your in-hand salary is lower because CTC includes employer contributions (EPF 12%, gratuity 4.81%) that you don't receive directly. Additionally, deductions like employee EPF (12%), professional tax (₹200/month), and income tax (TDS) reduce your take-home pay. Typically, in-hand is 60-70% of CTC.
Can I withdraw EPF before 5 years?
Yes, but with conditions. You can withdraw EPF before 5 years for specific purposes: home loan down payment, medical emergency, higher education, or unemployment (after 1 month). However, withdrawals before 5 years are taxable. After 5 years of continuous service, EPF withdrawal is tax-free.
What happens to gratuity if I leave before 5 years?
Gratuity is payable only after completing 5 years of continuous service. If you leave before 5 years, you don't receive gratuity. However, some companies offer gratuity even before 5 years as part of full and final settlement, though it's not legally mandatory.
Should I opt for higher basic or higher allowances?
It depends on your goals. Higher basic (50% of CTC) means higher EPF contribution, better retirement corpus, and higher gratuity, but lower monthly in-hand salary. Higher allowances (40% basic) mean higher monthly in-hand but lower retirement benefits. Choose based on your age and financial priorities.
Is professional tax applicable in all states?
No, professional tax is not applicable in all states. States like Gujarat, Delhi, Uttar Pradesh, Haryana, and Rajasthan don't levy professional tax. Maharashtra, Karnataka, West Bengal, and Tamil Nadu charge ₹200-₹208 per month. Check your state's professional tax rules.
Can I claim HRA if I live with parents?
Yes, you can claim HRA even if you live with parents, provided you pay rent to them. You need a rent agreement and rent receipts. Your parents must show this rental income in their ITR. However, if your parents are in a lower tax bracket, this can be tax-efficient for the family.
What is the difference between gross salary and CTC?
Gross salary is the total of basic, HRA, and allowances that you receive monthly/annually. CTC includes gross salary plus employer contributions (EPF 12%, gratuity 4.81%, insurance, bonuses). Formula: CTC = Gross Salary + Employer EPF + Gratuity + Other Benefits.
How is bonus included in CTC?
Performance bonus and annual bonus are typically included in CTC as part of special allowance or variable pay. Some companies show it separately. Statutory bonus (8.33% of basic, max ₹7,000) is mandatory for employees earning below ₹21,000/month and is part of CTC.

Common Salary Components Glossary

Tips for Maximizing Take-Home Salary

Technical Performance & Accessibility

Our Salary Breakup Calculator is built with modern web technologies: