📘 Salary Breakup Calculation: Introduction
Indian salary breakup typically consists of the following 3 main sections:
| Section | Components | Notes |
|---|---|---|
| 🟦 A: Earning Components | 1. Basic & DA | Core of salary; affects most calculations |
| 2. HRA | Depends on Basic & DA; used for rent exemption | |
| 3. Other Allowance | Balance figure; often includes city/special/medical | |
| 🟥 B: Deduction Components | 1. ESI (Employee) | Deducted if Gross Salary ≤ ₹21,000 |
| 2. PF (Employee) | 12% of Basic or capped at ₹1,800 | |
| 3. PT | Varies state-wise; fixed slab deduction | |
| 🟨 C: CTC Components | 1. ESI (Employer) | 3.25% of Gross if ≤ ₹21,000 |
| 2. PF (Employer) | 13% of Basic + DA (with admin charges) | |
| 3. Bonus | 8.33% of Basic + DA or ₹7,000 minimum | |
| 4. Gratuity | 4.81% of Basic + DA (paid post 5 years) |
📌 Let’s now explore each component and how to calculate it, step by step!
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