Salary breakdown decomposes your annual CTC into Basic, HRA, Special Allowance, employer PF, gratuity, and other components, then computes your in-hand take-home after tax and deductions. Useful for understanding offer letters and comparing salaries.
What is Salary Breakdown?
Indian salaries are quoted as CTC (Cost To Company) — the total cost the employer bears, including parts you never see in your bank account (employer PF contribution, gratuity provision, sometimes insurance premiums). Your actual monthly take-home is significantly less.
A typical Indian salary structure breaks down as: Basic Salary (40-50% of CTC), HRA (40-50% of Basic), Special Allowance (the residual to make up the gross), Employer PF (12% of Basic, capped), Gratuity (4.81% of Basic). From the gross, deductions are: Employee PF (12%), Professional Tax (₹2,500/year approx), and Income Tax.
The calculator uses a typical structure and the new tax regime (FY 2024-25 slabs) to estimate take-home. Real salary structures vary — some companies pay performance bonuses, LTA, food coupons, etc. The calculator gives a baseline; your actual structure may differ.
Salary structure used
- CTC
- Cost To Company—annual total cost; the headline offer number
- Basic
- Basic Salary—anchor for HRA, PF, gratuity calculations
How to use this calculator
Two inputs: CTC and city type.
Enter annual CTC
The figure on your offer letter or appraisal letter — the full annual package.
Pick city type
Metro (Delhi, Mumbai, Kolkata, Chennai) gets 50% of basic as HRA. Other cities get 40%.
Read the breakdown
Component-wise breakup, plus monthly and annual take-home estimates.
Salary calculator use cases
Offer letter review
When you get an offer, the headline CTC is misleading. The calculator gives you the actual monthly cash you will see.
Job switch comparison
Compare CTCs from two offers — sometimes a 'higher' CTC has a lower in-hand because of structure differences.
HRA exemption planning
Knowing your basic and HRA helps plan rent and HRA exemption claims.
Loan eligibility prep
Banks use net monthly income for eligibility. Calculator gives you that figure.
Glossary
- CTC
- Cost To Company — the total annual cost of employing you, including non-cash benefits.
- Basic Salary
- Anchor salary component, usually 40-50% of CTC. Drives HRA, PF, gratuity calculations.
- HRA
- House Rent Allowance — partly tax-exempt under Section 10(13A).
- EPF
- Employees' Provident Fund — 12% of basic from both employee and employer (capped). Tax-free withdrawal after 5 years.
- Gratuity
- Lump-sum payment from employer after 5+ years of service. Provisioned at 4.81% of basic annually.
- Professional Tax
- State tax on salaried employment. Around ₹200/month in most states.
- In-hand salary
- Take-home amount after all deductions — what hits your bank account each month.