Use the Salary Breakup Calculator to compute monthly & annual CTC, net pay, PF, ESI, professional tax and gratuity quickly — updated for FY 2025-26. Easy, accurate and India-specific.
Salary Breakup Calculator: Fully Automatic
| Components | Values |
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Select State*: |
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Enter Gross Salary*: |
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Minimum Wage Basic: | |
Minimum Wage DA: | |
Special Allowance: | |
Basic Percentage: |
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HRA Percentage: |
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Service Weightage: |
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Other Earning Components:
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Understanding Your Results — Quick Guide
Below are short, plain-language descriptions of key output lines you’ll see. Use this as a quick reference when you review the annexure the calculator produces.
- Gross Salary / Gross Earnings: Total monthly salary before any employee deductions. (This is the input you normally enter — the calculator breaks it down into components.)
- Basic: The cornerstone component used to compute PF, gratuity and some allowances. Employers typically set Basic as a percentage of Gross (common defaults: 40%–60%) — the calculator uses your chosen Basic % to compute Basic pay.
- DA (Dearness Allowance): If applicable, DA is computed as per your configuration (many private-sector offers set DA = 0 or a small percentage). The calculator supports both zero and DA inputs.
- HRA (House Rent Allowance): Calculated by typical employer rules (HRA % of Basic+DA with exceptions). The calculator flags if computed HRA falls below statutory minima (for example if it is less than 5% of Basic+DA).
- Other Allowances (Special / Service Weightage / Bonus / NH/NFH / Leave wages): Additional monthly or yearly earnings you add via the “Other Earning Components” fields. The calculator shows both monthly and yearly values where relevant.
- Provident Fund (PF) — Employee & Employer: The employee contribution is normally 12% of Basic + DA (standard EPF rules), with a corresponding employer share and statutory components. The calculator computes employee & employer PF using standard EPF contribution logic.
- ESI (Employee State Insurance): If the employee’s gross wage is within the ESI threshold, employee and employer contributions apply. Current statutory contribution split: employee 0.75% & employer 3.25% (w.e.f. earlier notifications; the calculator applies this rule automatically when applicable).
- Professional Tax (PT): State-wise and slab-based — the calculator applies a professional-tax mapping per the selected state and gross monthly salary (monthly PT rates differ across states). If a state has no PT, the calculator shows zero. (State PT schedule is encoded in the calculator logic.)
- Income Tax (TDS / Itax): Income-tax is computed using the relevant FY 2025–26 rules (new tax regime / default regime changes enacted in 2025). The calculator uses the updated slab logic; if you want to include rebates or special deductions, adjust the Income Tax field or consult a tax advisor for final annual filing.
- Gratuity (Employer cost): Gratuity is computed using the standard statutory formula (15 × last drawn salary × years of service ÷ 30) and—when expressed as a recurring employer contribution—commonly shown as ~4.81% of Basic in monthly CTC breakdowns; the calculator includes a gratuity component when ‘Applicable’ is selected.
- Net Pay (In-hand): Gross minus employee deductions (PF employee share, ESI employee share, PT, TDS and any other employee-side deductions). The calculator displays Net Pay prominently so you can see take-home salary at a glance.
- Monthly CTC & Annual CTC: Employer-side contributions (employer PF, employer ESI, gratuity, employer share of statutory benefits and yearly components) are added to Gross to compute Monthly and Annual CTC.
What is a Salary Breakup Calculator?
A Salary Breakup Calculator is a digital tool that automatically divides your gross salary or CTC (Cost to Company) into detailed salary components. These typically include Basic Pay, HRA, DA, Special Allowance, Other Allowances, and statutory deductions like PF, ESI, Professional Tax and Income Tax.
In India, employers must follow statutory rules laid down under the Income Tax Act, 1961, the EPF & Miscellaneous Provisions Act, 1952, and the Payment of Gratuity Act, 1972. A calculator like this helps employees understand:
- How much of their salary goes to in-hand pay (take-home).
- How much is contributed by the employer as part of CTC.
- Whether the breakup complies with minimum wage, PF, ESI, and gratuity requirements.
In short, it transforms a confusing salary letter into a transparent, easy-to-read annexure.
Why & Who Need This Calculator
This calculator is useful for:
- Job Seekers & Freshers – To understand what their “package” means in terms of take-home salary.
- Working Professionals – To verify salary slips and compare offers across companies.
- HR & Payroll Teams – To create legally compliant salary structures while remaining attractive to employees.
- Employers / Startups – To design competitive CTC packages that align with statutory norms.
- Freelancers shifting to jobs – To clearly know the impact of deductions before signing an offer.
Example: A fresher offered ₹6 LPA CTC might be surprised when their take-home is closer to ₹38,000/month after PF, PT, and income tax deductions. Using this tool avoids unpleasant surprises.
How to Use the Salary Breakup Calculator (Step-by-Step)
Using the calculator is simple and mobile-friendly. Follow these steps:
- Select Your State – Professional tax differs by state, so choose correctly.
- Enter Gross Salary (Monthly) – Either type the value or use the slider.
- Set Minimum Wages (if applicable) – Input Basic & DA as per state law if you want strict compliance.
- Adjust Percentages – Choose Basic % and HRA % from the dropdowns.
- Add Allowances – Input special allowances or add your own earning components.
- Add Deductions – Enter VPF, Income Tax, or other deductions if applicable.
- Employer Contributions (CTC) – Select whether Gratuity, Bonus, NH/NFH, or Leave Wages apply.
- View Results Instantly – The annexure updates live with Gross Earnings, Deductions, Employer Contributions, Net Pay, and CTC.
- Export & Share – Copy to clipboard, download Excel, or save as PDF for easy sharing.
Key Features of the Salary Breakup Calculator
This tool is designed with both compliance and usability in mind.
- Updated for FY 2025–26 – Reflects the latest Income Tax slabs, PF, ESI, PT, and gratuity rules.
- State-wise PT support – Automatically applies Professional Tax slabs depending on your state.
- Dynamic Components – Add custom allowances or deductions (up to 5 per category).
- Instant Results – Auto-updating annexure with Net Pay, Monthly CTC, Annual CTC.
- Export Options – Downloadable in Excel or PDF, or one-click copy to clipboard.
- Mobile Friendly – Fully responsive design for use on smartphones.
- Compliant Outputs – Ensures salary structures meet minimum wage rules and statutory contribution limits.
This makes it not only a personal salary calculator but also a professional HR tool.
Benefits of Using This Salary Breakup Calculator
Using the Salary Breakup Calculator offers several practical and financial advantages:
- Transparency: Get a clear view of how your salary package translates into real in-hand pay.
- Compliance: Ensures that salary structure follows the Minimum Wages Act, PF, ESI, and gratuity laws.
- Decision-Making: Compare multiple job offers quickly with net pay visibility.
- Financial Planning: Helps employees calculate take-home income, taxes, and contributions before joining.
- Employer Branding: For HR teams, a well-structured, compliant salary breakup builds trust with candidates.
- Negotiation Support: Employees can negotiate allowances, PF, or other components confidently.
- Quick Exports: Instantly download or share structured annexures for record-keeping.
Rules, Policies & Latest Updates (FY 2025–26)
The calculator is updated with the most recent rules as of September 2025:
- Income Tax (FY 2025–26, New Regime Default):
- Standard deduction of ₹75,000 for salaried employees.
- Updated slab rates effective from 1 April 2025 under the Finance Act.
- No tax up to annual income of ₹12 lakh (after standard deduction).
- Gradual rates from 5% to 30% above this threshold.
- Provident Fund (PF):
- 12% employee contribution (with ₹1,800 cap if wage > ₹15,000).
- 13% employer contribution (including administrative charges).
- Both calculated on Basic + DA.
- Employee State Insurance (ESI):
- Mandatory if gross monthly salary ≤ ₹21,000.
- Employee share 0.75%, employer share 3.25%.
- Professional Tax (PT):
- Applicable in selected states (e.g., Maharashtra, Karnataka, West Bengal, etc.).
- Deduction slabs differ by state and salary range.
- Gratuity:
- Employer contribution assumed as 4.81% of Basic in monthly CTC.
- Mandatory after 5 years of continuous service.
These updates ensure that your breakdown reflects real-world compliance and not just theoretical salary slips.
How is Salary Breakup Calculated?
The calculator applies a step-by-step formula based on Indian payroll standards:
- Basic = (Gross × Selected %), subject to minimum wage compliance.
- DA = % of Basic (if applicable).
- HRA = % of (Basic + DA) (but not less than 5%).
- Other Allowances = Gross – (Basic + DA + HRA + Special + Service Weightage).
- Employee Deductions:
- PF Employee = 12% of (Basic + DA) (capped at ₹1,800 if wage > ₹15,000).
- ESI Employee = 0.75% of Gross (if Gross ≤ ₹21,000).
- Professional Tax = State-specific slab.
- Income Tax = As per updated FY 2025–26 tax regime.
- Employer Contributions:
- PF Employer = 13% of (Basic + DA).
- ESI Employer = 3.25% of Gross (if eligible).
- Gratuity = 4.81% of Basic.
- Other Yearly Benefits (Bonus, Leave Wages, etc.).
- Net Pay = Gross – (PF + ESI + PT + Income Tax + Other Deductions).
- CTC = Gross + Employer Contributions + Yearly Benefits.
Example Calculation with Breakdown Table
Let’s assume:
- State: Maharashtra
- Gross Salary: ₹50,000/month
- Basic %: 50%
- HRA %: 40%
- DA: 0 (private-sector default)
- Special Allowance: ₹2,000
- Professional Tax: ₹200 (Maharashtra slab for >₹10,000)
- PF Applicable: Yes
- ESI: Not applicable (>₹21,000)
Breakdown Table (Monthly):
| Component | Amount (₹) |
|---|---|
| Basic Pay (50%) | 25,000.00 |
| HRA (40% of Basic) | 10,000.00 |
| Special Allowance | 2,000.00 |
| Other Allowances | 13,000.00 |
| Gross Earnings | 50,000.00 |
| PF Employee (12%) | 1,800.00 |
| Professional Tax (PT) | 200.00 |
| Total Deductions | 2,000.00 |
| Net Pay (Take Home) | 48,000.00 |
| Employer PF (13%) | 1,950.00 |
| Gratuity (4.81% of Basic) | 1,203.00 |
| Employer Contributions | 3,153.00 |
| Monthly CTC | 53,153.00 |
| Annual CTC | 6,37,836.00 |
This table shows how ₹50,000 Gross translates to ₹48,000 in-hand salary and a total CTC of ~₹6.38 LPA.
Common Mistakes to Avoid in Salary Breakup
Even with tools like this calculator, professionals often make mistakes when interpreting salary structures. Here are the top ones to watch out for:
- Ignoring Professional Tax: Many employees forget that PT is state-specific, leading to differences in net pay across states.
- Not Checking PF Applicability: If Basic + DA > ₹15,000, PF contributions may be capped, but HR still deducts ₹1,800 monthly. Employees should check whether voluntary PF (VPF) is added.
- Confusing Gross vs. CTC: Gross is what you “earn before deductions,” while CTC includes employer contributions. Don’t assume Gross = CTC.
- Underestimating Tax Liability: The calculator shows monthly income tax, but annual tax may differ if bonuses, arrears, or other income is added.
- Skipping Gratuity/Bonus Calculations: Employers often highlight CTC by adding future or conditional components (gratuity, annual bonus). Understand which are cash-in-hand vs. notional costs.
- Blindly Accepting Offer Letters: Candidates sometimes sign without reviewing the breakup, only to be surprised when take-home is lower than expected.
- Not Updating Rules: Payroll laws (like income tax slabs) change every budget. Always use an updated calculator (like this one, maintained for FY 2025–26).
Conclusion
The Salary Breakup Calculator is more than just a payroll tool — it is a decision-making aid for employees and HR professionals alike. By showing a transparent split between Gross, Deductions, Net Pay, and CTC, it empowers you to:
- Compare multiple job offers fairly.
- Negotiate salaries with clarity.
- Ensure compliance with Indian labour laws.
- Plan finances better with accurate take-home salary estimates.
As of September 2025, this calculator is aligned with the latest tax regime, PF/ESI contributions, gratuity formula, and professional tax rules. Whether you are a fresher or a senior professional, using this tool ensures you never misinterpret your salary structure again.
Try the calculator above now and instantly know your Net Pay, CTC, and statutory deductions.
FAQ
What is a Salary Breakup Calculator?
A Salary Breakup Calculator is a tool that splits your gross salary or CTC into Basic, HRA, allowances, statutory deductions (PF, ESI, Professional Tax, Income Tax) and employer contributions so you can see your in-hand pay and monthly/annual CTC clearly.
How accurate is this Salary Breakup Calculator for 2025?
This calculator is updated for FY 2025–26 and uses the latest income tax slabs, PF/ESI rules and gratuity assumptions valid as of September 2025 for accurate estimates. Always consult a tax advisor for final filing numbers.
How do I calculate in-hand salary from CTC?
In-hand salary = Gross Salary – (PF Employee + ESI Employee + Professional Tax + Income Tax + Other employee-side deductions). Employer contributions (PF employer share, gratuity, etc.) are part of CTC but not in-hand pay.
Is Professional Tax applicable everywhere in India?
No. Professional Tax is levied only by some states (for example Maharashtra, Karnataka, West Bengal). If your state does not levy PT, the calculator shows zero for Professional Tax.
Can I increase my take-home salary by changing components?
Yes — by discussing components with HR (for example increasing special allowances, changing HRA split, or reducing VPF). However, statutory deductions like PF, ESI and PT are mandatory and cannot be avoided using breakup changes alone.
What is the difference between Gross Salary and CTC?
Gross Salary is the monthly salary before employee deductions. CTC (Cost to Company) = Gross Salary + Employer contributions (PF employer share, ESI employer share, gratuity provision, annual bonus allocations, etc.).
Does Gratuity count in monthly take-home pay?
No. Gratuity is a retirement benefit payable after eligibility (generally 5 years service). It is often shown as a monthly notional contribution in CTC (approx. 4.81% of Basic) but does not increase monthly take-home pay.
Why is HRA sometimes shown as negative in calculators?
HRA can appear negative if the selected HRA % or other inputs lead to an impossible arithmetic result (e.g., chosen percentages exceed gross or statutory minimums are violated). The calculator flags such cases so you can adjust the structure.
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