Framework Updated
| Salary | Monthly (₹) | Annual (₹) |
|---|---|---|
| CTC | 45,000 | 5,40,000 |
| Gross | 41,306 | 4,95,672 |
| Net | 38,669 | 4,64,028 |
| Lowest Tax - New Regime | ||
| Taxable Income | — | 4,20,672 |
| TDS | 0 | 0 |
| Post Tax Net | 38,669 | 4,64,028 |
| Component | Monthly (₹) | Annual (₹) |
|---|---|---|
| CASH EARNING COMPONENTS | ||
| Basic + DA | 21,972 | 2,63,664 |
| HRA | 10,985 | 1,31,820 |
| Conveyance All. | 8,349 | 1,00,188 |
| Total Cash Remuneration | 41,306 | 4,95,672 |
| TOTAL STATUTORY WAGES | 21,972 | 2,63,664 |
| EMPLOYER CONTRIBUTIONS & RETIRAL BENEFITS | ||
| Employer PF | 2,637 | 31,644 |
| Gratuity | 1,057 | 12,684 |
| Total Contributions | 3,694 | 44,328 |
| CTC | 45,000 | 5,40,000 |
| Total Remuneration | 43,943 | 5,27,316 |
| EMPLOYEE DEDUCTIONS | ||
| Employee PF | 2,637 | 31,644 |
| Total Deductions | 2,637 | 31,644 |
| Net Pay | 38,669 | 4,64,028 |
What This Salary Breakup Calculator Shows
A salary break-up is the split of your CTC into its parts — what you earn, what your employer contributes on your behalf, and what is deducted before you are paid. This salary breakup calculator builds that structure for you: Basic pay, HRA, allowances, Provident Fund, Gratuity, ESI, Professional Tax and income tax, down to the exact net salary that reaches your bank account each month for FY 2026-27.
It follows the wage definition in Section 2(y) of the Code on Wages, 2019 (the 50% floor that decides every statutory deduction), the PF and Gratuity rules in the Code on Social Security, 2020, and the income-tax slabs notified for FY 2026-27 under the Income-tax Act, 2025. Enter your CTC once, switch between the old and new tax regime, and see which one leaves more in your hand.
It also works backwards. Type the in-hand salary you want and the calculator works out the CTC that delivers it — useful when you are negotiating an offer rather than reading a payslip.
How to Calculate Salary Breakup From CTC
The formula, in one line:
In-hand salary = CTC − employer PF − Gratuity accrual − employee PF − Professional Tax − income tax
The first two never reach you. The last three leave your payslip before it is credited. Everything else is the salary structure in between.
CTC, Gross Salary and Net (Take-Home) Salary
CTC (Cost to Company) is the total annual cost your employer bears for you. It includes your Basic salary, HRA, allowances, and the employer's contributions to PF and Gratuity that never appear in your account.
Gross salary is CTC minus those employer-side contributions. It is what is actually paid out before your own deductions begin.
Net salary — also called in-hand or take-home salary — is gross salary minus your own PF contribution, Professional Tax and income tax. This is the figure that lands in your bank account.
Salary Structure — Every Component Explained
- Basic salary (Basic + DA) — the base component your PF, Gratuity and (in the old regime) HRA exemption are all calculated from. Under Section 2(y) of the Code on Wages, 2019, Basic plus Dearness Allowance must together be at least 50% of total remuneration.
- HRA (House Rent Allowance) — exempt from tax in the old regime under Section 10(13A), up to the least of: HRA received, rent paid minus 10% of Basic, or 50%/40% of Basic depending on your city. Fully taxable in the new regime.
- Special or other allowances — the balancing figure that brings the structure up to your agreed CTC. Fully taxable in both regimes.
- Employer PF — 12% of Basic under Section 16, Code on Social Security, 2020, applied either to your actual Basic or capped at the statutory wage ceiling, depending on your employer's policy.
- Gratuity accrual — 4.81% of Basic per month, an employer-side cost under Section 53 of the Code on Social Security, 2020. Paid out only when you leave, and only after five years of continuous service (one year for fixed-term employees).
- Statutory Bonus — 8.33% to 20% of wages under Section 26 of the Code on Wages, 2019, calculated on ₹7,000 or the applicable minimum wage, whichever is higher. Applies where monthly wages do not exceed ₹21,000.
Salary Breakup Example — ₹10,00,000 CTC
These figures come straight from the calculator above, using its default settings: ₹10,00,000 annual CTC, Basic 50%, HRA 50%, a metro city, Karnataka for Professional Tax, and PF applied with the statutory ceiling. Enter the same values and you will see the same table.
Earnings
| Component | Monthly (₹) | Annual (₹) |
|---|---|---|
| Basic + DA | 40,688 | 4,88,256 |
| HRA (50% of Basic) | 20,344 | 2,44,128 |
| Conveyance All. (balancing) | 17,344 | 2,08,128 |
| Gross Salary | 78,376 | 9,40,512 |
| Employer PF (12% of ₹25,000) | 3,000 | 36,000 |
| Gratuity (4.81% of Basic) | 1,957 | 23,484 |
| CTC (total) | 83,333 | 9,99,996 |
The annual CTC reads ₹9,99,996 rather than ₹10,00,000 because the calculator works in whole rupees per month — ₹83,333 × 12. Every payroll system rounds somewhere; this one rounds where your payslip does.
Note how Basic is set. The Code on Wages requires Basic + DA to be at least half of total remuneration, not half of CTC — and total remuneration excludes the Gratuity provision. Here total remuneration is ₹9,76,512, and Basic + DA of ₹4,88,256 is exactly 50% of it. Employers who apply the 50% test to CTC instead end up under-providing statutory wages.
Deductions and Net Salary
| Item | New Regime | Old Regime |
|---|---|---|
| Gross Salary | ₹9,40,512 | ₹9,40,512 |
| Standard deduction | ₹75,000 | ₹50,000 |
| HRA exemption | Not allowed | ₹2,44,128 |
| Employee PF (Section 80C) | Not deductible | ₹36,000 |
| Prof. Tax (Karnataka) | ₹2,500 | ₹2,500 (deductible) |
| Taxable income | ₹8,65,512 | ₹6,07,885 |
| Tax (incl. 4% cess) | ₹0 (87A rebate) | ₹35,436 |
| Employee PF deducted | ₹36,000 | ₹36,000 |
| Professional Tax deducted | ₹2,500 | ₹2,500 |
| Net salary (annual) | ₹9,02,012 | ₹8,66,576 |
| Net salary (monthly) | ₹75,176 | ₹72,223 |
The old-regime HRA exemption above assumes rent at or above the HRA received; a lower rent reduces it.
At this CTC the new regime wins by ₹35,436 a year, entirely because of the Section 87A rebate on taxable income up to ₹12 lakh. That advantage narrows at higher salaries and reverses once your old-regime deductions get large enough. Run your own numbers in the calculator above rather than relying on this example.
How to Calculate Basic Salary From CTC
There is no single formula fixed in law. What the law fixes is a floor: Section 2(y) of the Code on Wages, 2019 requires Basic plus Dearness Allowance to be at least 50% of total remuneration.
In practice most employers set Basic at 40–50% of CTC. Anything lower and the structure fails the statutory test; anything much higher and the employer's PF and Gratuity costs rise, because both are calculated on Basic.
The basic salary calculation matters more than most people realise — it drives your PF, your Gratuity, your statutory bonus and, in the old regime, your HRA exemption. Two offers with identical CTC but different Basic percentages produce noticeably different take-home pay.
Old vs New Tax Regime — FY 2026-27
| Slab | New Regime | Old Regime |
|---|---|---|
| Nil | Up to ₹4,00,000 | Up to ₹2,50,000 |
| 5% | ₹4,00,000 – ₹8,00,000 | ₹2,50,000 – ₹5,00,000 |
| 10% | ₹8,00,000 – ₹12,00,000 | — |
| 15% | ₹12,00,000 – ₹16,00,000 | — |
| 20% | ₹16,00,000 – ₹20,00,000 | ₹5,00,000 – ₹10,00,000 |
| 25% | ₹20,00,000 – ₹24,00,000 | — |
| 30% | Above ₹24,00,000 | Above ₹10,00,000 |
Standard deduction: ₹75,000 in the new regime, ₹50,000 in the old.
Section 87A rebate: taxable income up to ₹12,00,000 pays zero tax in the new regime, with a maximum rebate of ₹60,000. The old regime's threshold is ₹5,00,000 with a maximum rebate of ₹12,500.
One difference catches people out. The new-regime rebate tapers through marginal relief just above ₹12,00,000, so crossing the line costs you a little. The old-regime rebate has no marginal relief — exceed ₹5,00,000 by a single rupee and the full tax applies from ₹2,50,000 upwards.
Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%) in both regimes, with a further 37% band above ₹5 crore in the old regime only. A 4% health and education cess sits on top of everything.
Which to choose. The old regime lets you claim HRA exemption, Section 80C up to ₹1,50,000, home loan interest under Section 24(b) and employer NPS under Section 80CCD(2). The new regime allows only the standard deduction and Section 80CCD(2). As a rule of thumb the new regime wins for salaried employees without a home loan or large 80C investments; the old regime pulls ahead once HRA, 80C and home loan interest together exceed roughly ₹4–5 lakh. For a deeper comparison, use the income tax calculator for the new regime.
PF, ESI, Professional Tax and HRA in Your Salary Breakup
Provident Fund — the wage ceiling rose to ₹25,000 in September 2026
The EPF wage ceiling is now ₹25,000 a month, up from ₹15,000. The Union Cabinet approved the increase on 16 September 2026 and it took effect on 17 September 2026 through notification S.O. 5109(E) — the first change since September 2014.
If your employer applies PF on the ceiling rather than your actual Basic, your monthly deduction moves from ₹1,800 to ₹3,000 (12% of ₹25,000), matched by ₹3,000 from your employer. That is ₹1,200 a month less in hand and ₹2,400 a month more going into your retirement corpus. Any calculator still showing ₹1,800 is working from the old ceiling.
The employer's ₹3,000 splits two ways: 8.33% to the Employees' Pension Scheme (₹2,083) and 3.67% to your EPF account (₹917). The government's own EPS contribution stays capped at 1.16% of ₹15,000 — ₹174 a month — so the higher ceiling raises your pension-scheme credit without raising the subsidy behind it.
PF is deducted at 12% of Basic under Section 16 of the Code on Social Security, 2020. Employers may apply it to your actual Basic or cap it at the ceiling — the second is more common, and the calculator above defaults to it, so you can switch between the two and see exactly what each does to your net salary. Your contribution qualifies for Section 80C in the old regime. See the full PF / EPF calculator for interest and maturity projections.
ESI
ESI applies only if your gross wages are ₹21,000 a month or below — the ceiling in Section 2(88) of the Code on Social Security, 2020, raised to ₹25,000 for employees with disabilities. The rates are 0.75% from you and 3.25% from your employer. Above that wage level ESI simply does not appear in your salary breakup.
Professional Tax — State by State
Professional Tax is levied by state governments, and the rules differ more than most people expect.
- Karnataka and Maharashtra both charge ₹200 a month but take ₹300 in February, so the year totals ₹2,500 — not ₹2,400.
- Tamil Nadu and Kerala levy it half-yearly, and Tamil Nadu's rates are set by each local body rather than by the state.
- Odisha repealed the tax entirely from 1 April 2026. Chhattisgarh has exempted salaried employees since 2011. Goa has never levied it.
- Maharashtra exempts women earning up to ₹25,000 a month.
- Article 276 of the Constitution caps the total at ₹2,500 per person per year, whatever the state.
Pick your state in the calculator, or see the full state-wise Professional Tax calculator for every slab.
HRA Exemption — Which Cities Get 50%
HRA exemption applies only in the old regime, and the percentage depends on your city. These eight cities are treated at 50% of Basic:
Delhi · Mumbai · Kolkata · Chennai · Bengaluru · Hyderabad · Pune · Ahmedabad
Every other city is treated at 40%. Your actual exemption is the least of three figures — HRA received, rent paid minus 10% of Basic, or the 50%/40% limit — so a low rent, not the city, is usually what caps it. Work out yours with the HRA exemption calculator.
How to Use This Salary Breakup Calculator
- Enter your CTC — annual or monthly, whichever your offer letter uses.
- Confirm or adjust your Basic percentage, HRA percentage and PF mode (actual Basic, or capped at the statutory ceiling).
- Select your state so Professional Tax is right, and your city so HRA is right.
- Toggle between the old and new tax regime to compare net salary side by side.
- Read the full salary breakup — Basic, HRA, allowances, employer PF, Gratuity, ESI where it applies, Professional Tax and TDS.
- To work backwards, switch the pay base from CTC to Net or Gross and type the figure you want. The calculator solves for the CTC that delivers it, and holds that target steady while you change the structure around it.
Frequently Asked Questions
What is included in a salary breakup?
A salary breakup splits your CTC into three groups: what you earn (Basic, HRA and allowances), what your employer contributes on your behalf (PF and Gratuity accrual, which never reach your account), and what is deducted before payment (your own PF, Professional Tax and income tax). What remains is your net salary. If you want only the final take-home figure without the full structure, use the CTC to in-hand salary calculator instead.
How to calculate basic salary from CTC?
There is no fixed formula, only a floor. Section 2(y) of the Code on Wages, 2019 requires Basic plus Dearness Allowance to be at least 50% of total remuneration. Most employers set Basic at 40–50% of CTC to satisfy this while keeping other components flexible.
How to calculate gross salary from CTC?
Gross salary = CTC − employer PF contribution − Gratuity accrual. Those are the two components of CTC that are costs to your employer rather than payments to you, so removing them leaves the amount actually paid out before your own deductions.
How to calculate net salary after tax?
Net salary = gross salary − employee PF − Professional Tax − income tax. Income tax depends on the regime you choose, so the same gross salary produces two different net salaries. The calculator above shows both.
How to calculate CTC from in-hand salary?
Work the formula in reverse: add back income tax, Professional Tax and your PF contribution to reach gross salary, then add the employer's PF and Gratuity to reach CTC. The calculator does this for you — switch the pay base to Net, type your target take-home, and it solves for the CTC required.
What is the difference between CTC, gross salary and net salary?
CTC is what you cost your employer. Gross salary is what is paid out before your deductions. Net salary is what reaches your bank account. The gap between CTC and net salary is typically 10–20%, depending on your tax regime and salary structure.
Which is better — the old or new tax regime?
It depends on your deductions. Without a home loan or significant 80C investments the new regime usually costs less, because of the ₹12 lakh rebate threshold. With HRA, 80C and home loan interest together above roughly ₹4–5 lakh, the old regime can still win. Compare both with your real numbers using the calculator above.
How much PF is deducted from salary every month?
12% of your Basic pay, matched by an equal 12% from your employer, under Section 16 of the Code on Social Security, 2020. Where the employer applies the statutory ceiling, that is now ₹3,000 a month — 12% of ₹25,000 — after the ceiling rose from ₹15,000 on 17 September 2026. Employers who apply PF to actual Basic deduct 12% of the full figure instead. The calculator above lets you switch between the two.
What is the new EPF wage ceiling of ₹25,000?
The EPF wage ceiling rose from ₹15,000 to ₹25,000 a month on 17 September 2026, under notification S.O. 5109(E), following Cabinet approval on 16 September. It is the first increase since 2014. For employees whose PF is calculated on the ceiling, the monthly contribution rises from ₹1,800 to ₹3,000 on each side — lowering take-home pay by ₹1,200 a month while adding ₹2,400 a month to retirement savings.
Is Professional Tax the same in every state?
No. The amount, the billing cycle and even whether it applies at all vary by state. Karnataka and Maharashtra charge ₹200 monthly with ₹300 in February; Tamil Nadu and Kerala bill half-yearly; Odisha, Chhattisgarh and Goa do not levy it on salaried employees. Article 276 of the Constitution caps it at ₹2,500 per person per year.
What parts of CTC do you never receive in hand?
The employer's PF contribution and the Gratuity accrual. Both sit inside your CTC as employer costs. Employer PF goes into your PF account and is withdrawable later subject to rules; Gratuity is paid only when you leave, after five years of continuous service.
Is gratuity part of in-hand salary?
No. Gratuity accrues at 4.81% of Basic per month and is counted in CTC, but it never forms part of monthly salary. It is paid as a lump sum on separation after five years — one year for fixed-term employees — calculated as 15 × last-drawn Basic × years of service ÷ 26, capped at ₹20 lakh.
Does this salary calculator follow the new Labour Codes?
Yes. PF, Gratuity and statutory bonus use the wage definition and rates notified under the Code on Wages, 2019 and the Code on Social Security, 2020. Income tax uses the slabs and sections notified under the Income-tax Act, 2025, in force from 1 April 2026.
Related Salary Calculators
- In-hand salary calculator — for take-home pay without the full structure
- Monthly salary calculator — monthly figures from an annual package
- Salary hike calculator — what a percentage increase does to your breakup
- Salary slip generator — turn this breakup into a payslip
- Income tax calculator — old vs new regime in detail
- PF / EPF calculator · Professional Tax calculator · HRA exemption calculator
Legal References and Disclaimer
This salary breakup calculator applies: Section 2(y), Code on Wages, 2019 (wage definition and 50% floor); Section 26, Code on Wages, 2019 (statutory bonus, 8.33%–20%); Section 16, Code on Social Security, 2020 (Provident Fund, 12%, wage ceiling ₹25,000 per S.O. 5109(E) effective 17 September 2026); Section 53, Code on Social Security, 2020 (Gratuity, 4.81% monthly accrual); Section 2(88), Code on Social Security, 2020 (ESI, ₹21,000 wage ceiling); Section 10(13A), Income-tax Act (HRA exemption); the Income-tax Act, 2025 slabs, Section 87A rebate and surcharge tables for FY 2026-27; and state Professional Tax Acts as notified.
This tool provides an estimate for planning purposes only and does not constitute tax, legal or financial advice. Your actual salary breakup depends on your employer's policy, your declared investments, and the rules in force on your payslip date. Consult a qualified tax professional or your payroll team for exact figures.
Last verified for FY 2026-27 slabs and rates: September 2026.
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