Indian Salary Breakup Calculation

C. CTC Components

Components	Description	Excel Formula
1. ESI (Employer)	Governed by the State Government, ESI for employers is calculated as 3.25% of Gross Salary. Condition: Not applicable if the Gross Salary exceeds ₹21,000.	IF(Gross < 21001, Gross × 3.25%, 0)
2. PF (Employer)	Regulated by the Central Government, PF Employer contribution is calculated as 13% of (Gross – HRA). This includes administrative charges. Note: If (Gross – HRA) exceeds ₹15,000, the PF is capped at ₹1,950.	IF((Gross – HRA) < 15001, (Gross – HRA) × 13%, 1950)
3. Bonus	Bonus is calculated as 8.33% of Basic & DA and is payable annually within 8 months after the financial year ends. Mandatory: If Basic + DA is ≤ ₹20,000/month. If 8.33% of Basic + DA is less than ₹7,000, then ₹7,000 must be paid as minimum bonus.	Basic & DA × 8.33% (Min ₹7,000)
4. Gratuity	Gratuity is paid after completing 5 years of continuous service. In Offer Letter: Calculated as 4.81% of Basic + DA. Final Payment: (Current Basic + DA ÷ 26) × 15 × No. of completed years.	Basic & DA × 4.81%
5. CTC	CTC stands for Cost to the Company. It is the total of Gross Salary and all employer-side contributions and benefits such as ESI, PF, Bonus, and Gratuity.	Gross + All CTC Components