Salary Break-up Calculator

Enter your CTC and instantly see the complete salary structure — Basic, HRA, LTA, allowances, PF, Gratuity, TDS and your exact in-hand take-home salary under New or Old Tax Regime 2026.

12%EPF of Basic+DA
4.81%Gratuity of Basic
₹75,000Standard Deduction
New + OldBoth Tax Regimes

Salary Break-up Calculator

CTC → Gross → Deductions → In-Hand · Full payslip breakdown

💰 CTC & Basic
🏠 Allowances
➖ Deductions
📑 Tax & Regime

Annual CTC (₹)

Total Cost to Company per year (as per offer letter)
Basic Salary (% of CTC)

Typically 40–50% of CTC. Higher basic = higher PF & gratuity
Dearness Allowance – DA (%)

DA is usually 0% for private sector; relevant for Govt employees
Annual Variable / Performance Bonus (₹)

Performance-linked bonus — usually paid annually, fully taxable
Annual Joining / Sign-on Bonus (₹)

One-time bonus included in CTC for year 1 — fully taxable
City Type (for HRA)
Metro City (Delhi, Mumbai, Chennai, Kolkata) – 50% HRANon-Metro City – 40% HRA

HRA (% of Basic)

50% for Metro; 40% for Non-Metro. Tax-exempt under Sec 10(13A)
LTA – Leave Travel Allowance (₹/year)

Exempt up to actual travel cost (block of 2 years, Sec 10(5))
Conveyance Allowance (₹/month)

₹1,600/month is a common standard (fully taxable in new regime)
Medical Allowance (₹/year)

₹15,000/year is standard (fully taxable unless reimbursed with bills)
Food / Meal Allowance (₹/month)

Tax-free up to ₹50/meal × 2 meals × 22 working days = ₹2,200/month
Telephone / Internet Reimbursement (₹/month)

Tax-exempt if reimbursed against actual bills
Children Education Allowance (₹/month)

₹100/month per child (max 2 children) is tax-exempt under Sec 10(14)
Other / Special Allowance (₹/year)

Balancing figure = CTC − Basic − HRA − Other components − Employer PF − Gratuity

Employee PF Contribution (%)

12% of Basic+DA (mandatory if basic ≤ ₹15,000; optional above). Sec 80C eligible
Employer PF Contribution (%)

12% of Basic+DA. Employer share: 3.67% to EPF + 8.33% to EPS
Include Gratuity in CTC?
Yes – Gratuity deducted from CTC (4.81% of Basic)No – Gratuity is over and above CTC
Most Indian companies include gratuity @ 4.81% of basic in CTC
Professional Tax (₹/year)

Max ₹2,500/year. Enter 0 if in Delhi / Haryana / UP / Rajasthan
ESI (Employee State Insurance) %

0.75% if gross salary ≤ ₹21,000/month. Enter 0 if not applicable
Group Health Insurance Premium (₹/year)

Premium deducted from salary for employer group health cover
Voluntary PF / NPS Contribution (₹/year)

Additional VPF / NPS Tier-I contribution beyond mandatory PF
Other Monthly Deductions (₹/month)

Any other recurring deductions (loan EMI recovery, canteen, etc.)

Select Tax Regime
⚡ New Tax Regime (Default 2026)
📋 Old Tax Regime
New regime: lower rates, no exemptions. Old regime: higher rates but allows HRA, 80C, 80D etc.
Sec 80C Investments (₹/year)

PF + PPF + ELSS + LIC + Tuition fees etc. Max deduction: ₹1.5 lakh (Old regime only)
Sec 80D Health Insurance Premium (₹/year)

Self: ₹25,000 | Senior citizen parents: ₹50,000 (Old regime only)
NPS Contribution – Sec 80CCD(1B) (₹/year)

Additional ₹50,000 NPS deduction over 80C limit (Old regime only)
Annual Rent Paid (₹/year)

For HRA exemption calculation under Old regime (Sec 10(13A))
Home Loan Interest – Sec 24(b) (₹/year)

Max ₹2 lakh deduction on self-occupied property interest (Old regime only)
Other Chapter VI-A Deductions (₹/year)

80E (education loan), 80G (donations), 80TTA (savings interest) etc.
⚡ Calculate Salary Break-up

📊 Your Complete Salary Breakdown

Annual CTC
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Gross Salary
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Total Deductions
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In-Hand (Take Home)
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💵 Earnings Breakdown (Annual)

🏢 Employer Contributions (Part of CTC)

➖ Deductions from Gross Salary

📑 Income Tax Calculation

💰 Annual In-Hand Salary
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📅 Monthly In-Hand Salary
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📊 Effective Tax Rate
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📊 CTC Component Distribution

🧾 Monthly Payslip Preview

Monthly Payslip

FY 2025–26

Earnings

Deductions

💰 Net Take-Home (Monthly)
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Find out how much Professional Tax is deducted from your salary based on your state.

PT Calculator →

Understanding Your Salary Structure

Every component of your Indian salary slip explained clearly

💡Key Salary Components Explained

Basic Salary

Core Fixed Pay

Foundation of salary — typically 40–50% of CTC. All PF, gratuity, HRA, and DA are calculated as a percentage of basic. Higher basic = more PF, more gratuity, but also more TDS. Cannot be reduced once set.

HRA

House Rent Allowance

Typically 50% of basic (metro) or 40% (non-metro). Tax exemption under Sec 10(13A) is the least of: actual HRA received, rent paid minus 10% of basic, or 50%/40% of basic. Only for employees in rented accommodation.

LTA

Leave Travel Allowance

Exempt from tax under Sec 10(5) for actual travel cost within India (economy class / AC2 rail). Available for 2 journeys in a block of 4 calendar years. Current block: 2022–2025. Only domestic travel qualifies.

Special Allowance

Balancing Component

The residual amount after all other components are allocated from CTC. Fully taxable, flexible in amount, and used by employers to structure total compensation. Most private sector salaries have a large special allowance component.

EPF

Employee Provident Fund

12% of Basic+DA contributed by employee (Sec 80C eligible, max ₹1.5L) and 12% by employer (3.67% EPF + 8.33% EPS). Employer’s share is part of CTC but not in gross. Tax-free withdrawal after 5 years. Current rate: 8.25% p.a.

Gratuity

Retirement Benefit

Included in CTC at 4.81% of basic (= 15/26 × 1/12 annually). Payable only after 5 years of service. Tax-free up to ₹25 lakh under Sec 10(10). Appears in CTC but not in monthly gross salary.

🧮CTC vs Gross Salary vs In-Hand Salary

Key insight: A ₹12 lakh CTC does NOT mean ₹1 lakh in hand per month. After employer PF (₹57,600), gratuity (₹27,692), employee PF (₹57,600), professional tax (₹2,400), and TDS, the actual monthly in-hand for ₹12L CTC is typically ₹75,000–₹82,000 depending on allowance structure and tax regime.

📑New vs Old Tax Regime – 2026 Comparison

🏠HRA Exemption Calculation – How It Works

1

HRA Received: Actual HRA amount credited to you (as per salary slip).

2

Rent Paid minus 10% of Basic: Annual rent paid − 10% of annual basic salary.

3

50% / 40% of Basic: 50% of annual basic if residing in Delhi, Mumbai, Chennai or Kolkata. 40% for all other cities.

4

Exemption = Least of the above 3 amounts. The remaining HRA is added to taxable income. HRA exemption is available only under the Old Tax Regime — not available under the New Regime.

5

Example: Basic ₹6L/year, HRA received ₹3L, Rent paid ₹2.4L, Metro city.
① HRA: ₹3L ② Rent−10% basic: ₹2.4L−₹60K = ₹1.8L ③ 50% of basic: ₹3L → Exempt = ₹1.8L (least). Taxable HRA = ₹3L − ₹1.8L = ₹1.2L.

📊Sample Salary Breakups at Different CTC Levels

*Note: PF contribution is capped at 12% of ₹15,000 = ₹1,800/month = ₹21,600/year for mandatory EPF if salary is above ₹15,000. However, many companies continue to contribute on full basic. Figures above assume PF on full basic. The ₹57,600 cap applies in examples where company limits PF to statutory ceiling.

📈How to Maximise Your In-Hand Salary

1

Choose the Right Tax Regime: Use our calculator to compare. Do not choose a regime from CTC alone; compare taxable income and eligible deductions under both regimes. For higher CTC with big HRA, 80C investments and home loan, Old regime saves more.

2

Opt for Flexi-Benefit Plan: Many employers offer flexible pay — allocate salary into tax-efficient components like Meal Vouchers (₹26,400/year tax-free), Telephone (bills-based), LTA, Books & Periodicals allowance.

3

Limit Basic Salary: Lower basic → lower Employee PF → higher in-hand. Tradeoff: lower gratuity and PF corpus at retirement. Ask HR to restructure if basic is above 50% of CTC.

4

Use NPS Employer Contribution: Employer NPS contribution (Sec 80CCD(2)) up to 10% of Basic+DA is tax-free even in New Regime — a powerful tax saver for higher earners.

5

Claim HRA Correctly: Keep rent receipts and landlord’s PAN (if rent > ₹1L/year). Submit rent receipts to employer before March for correct TDS calculation. Under-declaring HRA leads to excess TDS deduction.

6

Submit Investment Proofs: Submit 80C, 80D proof to employer by January–February each year to prevent excess TDS. If excess TDS is deducted, claim refund in ITR — but it takes 3–6 months.

Frequently Asked Questions

Everything about salary structure, CTC, take-home pay and tax deductions in India 2026

What is the difference between CTC and in-hand salary?▾
CTC (Cost to Company) is the total amount an employer spends on an employee annually — including salary, Employer PF (12%), Gratuity (4.81%), health insurance, and other perks. In-hand salary is the net amount credited to your bank account after deducting Employee PF (12%), Professional Tax, TDS, ESI, and other deductions from gross salary. For a ₹12 lakh CTC, the monthly in-hand is typically around ₹78,000–₹85,000 — not ₹1,00,000.
Is the New Tax Regime better than the Old Tax Regime in 2026?▾
The New Tax Regime is the default for FY 2025–26 and is generally better for: (1) salary profiles with relatively limited old-regime deductions, (2) Employees in non-metro cities with lower HRA, (3) Those without home loans. The Old Regime is better when: HRA exemption is large, 80C investments are maxed at ₹1.5L, there is home loan interest above ₹1.5L, and 80D premiums are significant. Use our calculator to compare both and pick the one with lower tax outgo.
What is the standard deduction for salaried employees in 2026?▾
The standard deduction for salaried employees for FY 2025–26 (AY 2026–27) is ₹75,000 under the New Tax Regime (increased from ₹50,000 in Budget 2024). Under the Old Tax Regime, the standard deduction remains ₹50,000. This deduction is automatically applied to gross salary before computing taxable income — no investment proof is needed.
What is the EPF contribution rate and how is it split?▾
Both employee and employer contribute 12% of Basic + DA to provident fund. However, the employer’s 12% is split: 3.67% goes to EPF (the actual provident fund account) and 8.33% goes to EPS (Employee Pension Scheme). Only the EPF portion earns interest (8.25% for 2025–26). The full 12% employee contribution goes to EPF. Employer’s EPS contributes toward the ₹1,000–₹7,500/month post-retirement pension under EPS-95. PF coverage and the wage base used for contribution depend on the employee’s coverage status, wage structure and employer practice; verify the payroll and EPFO treatment instead of assuming that pay above ₹15,000 automatically makes PF voluntary.
Why is gratuity included in CTC but not paid monthly?▾
Gratuity is a retirement benefit provisioned annually by the employer at 4.81% of basic salary (= 15 days’ basic per year). It is included in CTC as a cost to the company but is not paid monthly — it is paid as a lump sum only when the employee leaves after completing 5 years of continuous service. The usual five-year continuous-service condition has important statutory exceptions and category-specific nuances, so verify eligibility from the applicable gratuity law and service facts rather than treating five years as an absolute rule. This is why CTC often “looks higher” than what you actually receive.
What is the 87A tax rebate and who can claim it in 2026?▾
Section 87A provides a tax rebate to individual taxpayers: Under the New Regime, if total taxable income does not exceed ₹12,00,000, the entire tax liability is rebated (up to ₹60,000 rebate). This means zero tax for income up to ₹12.75L (after ₹75,000 standard deduction). Under the Old Regime, rebate is up to ₹12,500 for taxable income ≤ ₹5,00,000. Note: Special rate income (STCG at 15%, LTCG at 12.5%) is excluded from the 87A rebate calculation.
What is ESI and when is it deducted from salary?▾
Employee State Insurance (ESI) is a social security scheme under the ESIC Act. It is applicable only if your gross salary is ₹21,000/month or below (₹25,000 for persons with disability). Contribution: Employee: 0.75% of gross; Employer: 3.25% of gross. ESI provides medical, maternity, disability and dependent benefits. If your salary exceeds ₹21,000/month, ESI does not apply and you will see no ESI deduction on your payslip.
Can I opt out of EPF if my salary is above ₹15,000?▾
EPF is mandatory for employees earning Basic+DA up to ₹15,000/month. For new employees joining an EPF-exempt establishment with basic above ₹15,000, they can opt out at the time of joining by submitting a declaration. However, if you are already an EPF member, you cannot opt out even if salary exceeds ₹15,000. You can limit contribution to 12% of ₹15,000 (i.e., ₹1,800/month) by submitting Form 11 — but both employee and employer are bound by the statutory limit. VPF (Voluntary PF) above this is optional and tax-efficient.
What is Form 16 and when is it issued?▾
Form 16 is a TDS certificate issued by your employer under Section 203 of the Income Tax Act. It contains: Part A – TDS deducted and deposited quarter-wise with PAN/TAN details; Part B – Detailed salary breakup, exemptions claimed, and net taxable income. Employers must issue Form 16 by 15th June of the following financial year. Form 16 is essential for filing your Income Tax Return (ITR-1 for salaried) and is proof of TDS already paid on your salary.
How is Special Allowance calculated in salary?▾
Special Allowance is the balancing figure in salary structure — it is whatever remains after allocating all other defined components from CTC. Formula: Special Allowance = CTC − Basic − HRA − LTA − Other Allowances − Employer PF − Gratuity − Other Employer Costs. It is fully taxable with no exemption under either tax regime. Many IT companies and MNCs park a large portion of CTC in Special Allowance for flexibility. Higher special allowance means simpler structure but higher tax.