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 works as a full salary structure calculator: it builds Basic pay, HRA, allowances, Provident Fund, Gratuity, ESI, Professional Tax and income tax for FY 2026-27, and checks your structure against the Labour Code 50% wage rule so PF and Gratuity are calculated on the right base.
It follows the wage definition in Section 2(y) of the Code on Wages, 2019 (the 50% wages test that decides the base for PF, ESI, Gratuity and bonus), 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. If you only need the final take-home figure, the in-hand salary calculator gives it faster.
How to Calculate Salary Breakup From CTC
The formula, in one line:
In-hand salary = CTC − employer contributions (PF, ESI, statutory bonus, gratuity) − employee PF − employee ESI − Professional Tax − income tax
The employer contributions sit inside CTC but never reach you as monthly pay. The employee deductions leave your payslip before it is credited. ESI and statutory bonus apply only where your wages are ₹21,000 a month or less. Note the bases: PF, ESI, gratuity and bonus are all calculated on wages; only Professional Tax and income tax work on gross salary. 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 — PF, Gratuity, and ESI and statutory bonus where they apply — that never appear in your monthly pay.
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 and ESI contributions, 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 core of "wages" under Section 2(y) of the Code on Wages, 2019. Wages are the single base for PF, ESI, Gratuity and statutory bonus; only Professional Tax and income tax work on gross salary. If the excluded allowances (HRA, conveyance, employer PF and others) add up to more than 50% of total remuneration, the excess is added back to wages — so a low Basic no longer lowers PF or Gratuity.
- 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. Unless an allowance falls on the Code's exclusion list (as conveyance and HRA do), it counts as wages for PF, ESI, Gratuity and bonus.
- Employer PF — 12% of wages (Basic, DA, retaining allowance and any other pay not on the exclusion list, plus any amount added back under the 50% test) under Section 16, Code on Social Security, 2020, applied either to your actual wages or capped at the ₹25,000 statutory wage ceiling, depending on your employer's policy.
- Gratuity accrual — 4.81% of wages 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, pro rata, 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 in establishments with 20 or more employees, where monthly wages do not exceed ₹21,000. Where the accounting year ends on 31 March, bonus for FY 2025-26 must be paid by 30 November 2026.
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 wages) | 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 50% test is applied to total remuneration, not to 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, so the excluded components sit at 50% and nothing is added back to wages. Employers who apply the test to CTC instead end up under-providing statutory wages.
Because PF here runs on the ceiling, the ₹25,000 limit that took effect on 17 September 2026 matters: employee and employer PF are now ₹3,000 a month each, against ₹1,800 under the old ₹15,000 ceiling.
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.
Salary Structure for ₹30,000, ₹50,000 and ₹1,00,000 Gross Salary
These figures come straight from the calculator with the pay base set to Gross, using its default structure: Basic + DA at just over half of gross, HRA at 50% of Basic, and PF applied with the ₹25,000 statutory ceiling. Net pay here is before Professional Tax and income tax, which depend on your state and tax regime.
| Component (monthly, ₹) | ₹30,000 gross | ₹50,000 gross | ₹1,00,000 gross |
|---|---|---|---|
| Basic + DA | 15,957 | 26,500 | 51,500 |
| HRA | 7,978 | 13,250 | 25,750 |
| Conveyance All. | 6,064 | 10,250 | 22,750 |
| Gross salary | 29,999 | 50,000 | 1,00,000 |
| Total statutory wages | 15,957 | 26,500 | 51,500 |
| Employer PF | 1,915 | 3,000 | 3,000 |
| Employer ESI | 519 | — | — |
| Statutory bonus | 833 | — | — |
| Gratuity | 768 | 1,275 | 2,477 |
| CTC | 34,034 | 54,275 | 1,05,477 |
| Employee PF | 1,915 | 3,000 | 3,000 |
| Employee ESI | 120 | — | — |
| Net pay (before PT and income tax) | 27,964 | 47,000 | 97,000 |
| Annual CTC | 4,08,408 | 6,51,300 | 12,65,724 |
Three things stand out. At ₹30,000 gross, ESI and statutory bonus still apply, because both are tested on statutory wages (₹15,957 here), not on gross salary — so a ₹30,000 earner can still be below the ₹21,000 limit. At ₹30,000, PF runs on actual wages (12% of ₹15,957 = ₹1,915) because they are below the ₹25,000 ceiling. From ₹50,000 gross upwards, PF stops at ₹3,000 each side, the new maximum where the employer applies the ceiling.
How to Calculate Basic Salary From CTC
There is no single formula fixed in law, and the law does not require Basic itself to be any particular percentage. What Section 2(y) of the Code on Wages, 2019 fixes is a test on the excluded components: if allowances such as HRA, conveyance and employer PF add up to more than 50% of total remuneration, the excess is treated as wages anyway.
That is why most employers now set Basic + DA at or near 50% of total remuneration. Set it lower and the add-back pulls PF, ESI, Gratuity and bonus up regardless; set it much higher and those employer costs rise further, because all three are calculated on wages.
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.
How the 50% Wage Rule Changes Your Salary Breakup
The new Labour Codes, in force since 21 November 2025, use one definition of "wages" for PF, ESI, Gratuity and bonus — that uniformity is the main purpose of the change. It works in two steps:
- Count what is wages: all pay, including Basic, Dearness Allowance and retaining allowance — everything except the items on the Code's exclusion list.
- Test the exclusions: add up the components the Code excludes. If they exceed 50% of total remuneration, the amount above 50% is added back to wages.
What counts as wages, and what is excluded
| Counts as wages | Excluded (but tested against the 50% limit) |
|---|---|
| Basic pay | HRA |
| Dearness Allowance (DA) | Conveyance allowance and travel concession |
| Retaining allowance | Employer contribution to PF or pension |
| Any other pay not on the exclusion list (a special allowance, for example) | Statutory bonus, overtime allowance, commission |
| Any excess added back under the 50% test | Gratuity and retrenchment compensation |
Example: same pay, different PF and Gratuity
Take total monthly remuneration of ₹50,000 with Basic + DA of ₹15,000 (30%) and ₹35,000 in excluded allowances (70%). The exclusions are ₹10,000 above the 50% limit of ₹25,000, so wages become ₹15,000 + ₹10,000 = ₹25,000.
| Monthly | On Basic alone (₹15,000) | On Code wages (₹25,000) |
|---|---|---|
| Employee PF at 12% | ₹1,800 | ₹3,000 |
| Gratuity accrual at 4.81% | ₹722 | ₹1,203 |
An illustration only; it assumes PF on actual wages, which here equal the ₹25,000 ceiling. Run your own structure in the calculator above — the "Total Statutory Wages" line shows the wages figure after any add-back.
Myth vs fact
- Myth: Basic must be 50% of CTC. Fact: the test is on excluded components against total remuneration; CTC is not the base, and Basic itself has no fixed percentage.
- Myth: the 50% rule comes from the Income-tax Act, 2025. Fact: it comes from Section 2(y) of the Code on Wages, 2019. The tax law changes how salary is taxed, not what counts as wages.
- Myth: a lower Basic still cuts PF and Gratuity. Fact: any exclusions above 50% are added back, so restructuring allowances no longer reduces the statutory base.
Fixed vs Variable Pay in a Salary Structure
Fixed pay is paid every month; variable pay (performance pay, incentives) depends on targets and is usually paid quarterly or yearly. Both sit inside CTC, but only fixed pay is certain. When you compare offers, look at fixed pay first and treat variable pay as possible, not guaranteed. In the calculator, switch "Include Annual & Performance Pay" on or off to see the difference in tax and net salary.
How to Check the Salary Breakup in Your Offer Letter
- Wages vs exclusions: do HRA, conveyance and other allowances add up to more than half of total remuneration? If so, PF and Gratuity should be on the higher wages figure.
- PF base: is PF on actual wages or capped at ₹25,000? Both are allowed; the letter should say which.
- Gratuity: is it shown inside CTC? If yes, it is not monthly pay — it is paid only on leaving after eligibility.
- Variable pay: what share of CTC is variable, and what decides the payout?
- One-time items: joining bonus, relocation or retention pay inflate year-one CTC only.
Signs a salary breakup may be wrong: PF calculated on Basic alone when allowances exceed 50%; PF still capped at ₹15,000 after 17 September 2026 where the employer applies the ceiling; Gratuity missing from CTC or at the wrong rate; ESI not deducted where statutory wages are ₹21,000 or below; Professional Tax for the wrong state.
For HR: How to Prepare a Compliant Salary Structure
- List every pay component and mark it as wages or an excluded item under Section 2(y).
- Test the exclusions against 50% of total remuneration and add back any excess.
- Set the PF policy — actual wages or the ₹25,000 ceiling — and apply it consistently.
- Provide Gratuity at 4.81% of wages and statutory bonus where wages are ₹21,000 or below.
- Issue the revised salary annexure and explain any change in take-home to the employee.
For a ready format, see the salary breakup calculator in Excel. For hands-on training, see the HR Calcy payroll courses.
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 |
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Slabs are unchanged, but the law now uses "Tax Year" (Tax Year 2026-27 for income from April 2026 to March 2027), and the salary TDS certificate for this year will be Form 130, replacing Form 16. Section numbers on this page (80C, 87A, 10(13A) and so on) are the familiar ones from the 1961 Act; the 2025 Act renumbers them.
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). For a typical salaried employee, 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, or see your take-home under each regime in the in-hand salary calculator.
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 wages, 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).
September 2026 was a split month — contributions for 1–16 September use ₹15,000 and 17–30 September use ₹25,000 — so October 2026 is the first full month on the new ceiling. See PF wage ceiling ₹25,000: September split, ECR and examples.
PF is deducted at 12% of wages under Section 16 of the Code on Social Security, 2020. Employers may apply it to your actual wages 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 wages — as defined in Section 2(88) of the Code on Social Security, 2020 — are ₹21,000 a month or below (₹25,000 for employees with disabilities). The rates are 0.75% of wages from you and 3.25% of wages from your employer. ESIC's December 2025 guidance applies the same wage definition to both coverage and contributions. Because the test is on statutory wages rather than gross salary, ESI can apply even when your gross pay is well above ₹21,000, as the ₹30,000 example above shows. Unlike the PF ceiling, the ESI ceiling has not been revised; it has stayed at ₹21,000 since January 2017. 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 wages, 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, total statutory wages, 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.
- Download the result with the Excel or PDF button — it gives you a ready salary annexure to share or attach to an offer letter.
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, Gratuity accrual, and ESI and statutory bonus where they apply — none of which reaches your monthly pay), and what is deducted before payment (your own PF and ESI, 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, and the law sets no fixed percentage for Basic. Section 2(y) of the Code on Wages, 2019 tests the excluded components instead: if they exceed 50% of total remuneration, the excess is added back to wages. Most employers therefore set Basic + DA at or near 50% of total remuneration.
Does the 50% rule mean Basic must be 50% of CTC?
No. The test is applied to total remuneration, not CTC, and it limits the excluded components rather than fixing Basic. If exclusions exceed 50%, the excess counts as wages for PF, ESI, Gratuity and bonus.
Which allowances count as wages under the new Labour Codes?
Basic pay, Dearness Allowance and retaining allowance count as wages, and so does any other pay item not on the Code's exclusion list — a special allowance, for example. HRA, conveyance, employer PF contribution, statutory bonus, overtime, commission and gratuity are excluded — but only up to 50% of total remuneration; anything above that is added back to wages.
Are overtime and bonus counted in the 50% wage rule?
They are excluded from wages, but they are counted among the excluded components when the 50% test is applied. A structure with large overtime or bonus payouts can therefore trigger an add-back to wages.
How to calculate gross salary from CTC?
Gross salary = CTC − employer PF − employer ESI − statutory bonus − Gratuity accrual, with ESI and bonus only where wages are ₹21,000 a month or less. These are the components of CTC that are costs to your employer rather than monthly 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 − employee ESI − Professional Tax − income tax. PF and ESI are calculated on wages; Professional Tax and income tax on gross salary. 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 and ESI contributions to reach gross salary, then add the employer's PF, ESI, statutory bonus 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.
Is employer PF part of CTC?
Yes. The employer's 12% PF contribution is counted inside CTC but paid into your PF account, not your bank account. That is one reason your monthly in-hand is lower than CTC divided by 12.
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 wages (Basic, DA, retaining allowance and any other pay not on the exclusion list, plus any 50% add-back), 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 wages 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 — plus employer ESI and statutory bonus where your wages are ₹21,000 a month or less. All sit inside your CTC as employer costs. Employer PF goes into your PF account and is withdrawable later subject to rules; employer ESI funds your ESI cover; statutory bonus is paid once a year; Gratuity is paid only when you leave, after five years of continuous service (one year for fixed-term employees).
Is gratuity part of in-hand salary?
No. Gratuity accrues at 4.81% of wages 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, pro rata, for fixed-term employees — calculated as 15 × last-drawn wages × 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 under the Code on Wages, 2019 and the Code on Social Security, 2020, with the central rules notified on 8 May 2026. States are still notifying their own rules (the Centre expects all by 31 October 2026); until a state notifies, its existing rules continue for state-level items. 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 — salary for days worked and LOP deductions
- 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 · Gratuity 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 the 50% exclusion test); Section 26, Code on Wages, 2019 (statutory bonus, 8.33%–20%); the Code on Wages (Central) Rules and Social Security (Central) Rules, 2026, notified 8 May 2026; 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 (definition of wages, applied to the ₹21,000 ESI coverage 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: October 2026.