Free Salary Breakup Calculator 2026

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Free Salary Breakup Calculator For India 2026

Use our Salary Breakup Calculator to convert any CTC into a compliant, statute-grade structure — Basic, HRA, LTA, Special Allowance, EPF, Gratuity, TDS and monthly take-home for Indian employers.

India Statutory Compliant Live Calculation Visual Breakdown

Salary breakup inputs

FY 2025-26

1 Nature of CTCAnnual cost-to-company you offered or received

Annual CTC in rupees

₹

Basic salary share of CTC

2 Recipient contextWhere they work + what statutory components apply

City classification

Metro · 50% HRA Non-metro · 40% HRA

Statutory bonus (Payment of Bonus Act, 1965)

Include Exclude

Employer NPS contribution (Section 80CCD(2))

10% of Basic None

3 Calculation methodThree industry-standard structuring approaches

Pick a structuring method

Standard Breakup RECOMMENDED Tax-Optimized Compliance-First

Statutory caps

Bonus wage cap (₹/mo)

₹

EPF wage cap (₹/mo)

₹

Live Calculation

0% Take-home / CTC

In-hand (annual)-

Income tax-

PF + PT (employee)-

Take-home = Gross − Employee PF − Professional Tax − TDS
Gross = CTC − Employer PF − Gratuity

The math, step by step

From a single CTC number to monthly take-home — every rate × amount applied, every statutory cap honored.

Set the Basic

Pick Basic as a % of CTC. The Code on Wages, 2019 expects Basic ≥ 50% of total wages.

basic = ctc × basicPct
// e.g. 12,00,000 × 0.50

Allocate allowances

HRA at 50% (metro) or 40% (non-metro) of Basic. LTA at 1 month basic. Special = balancer.

hra = basic × (metro ? 0.50 : 0.40)
lta = basic × 0.0833
special = gross − basic − hra − lta

Apply deductions

Employee PF (12% of capped basic), Professional Tax (state), TDS on (Gross − ₹75k std. deduction).

pf = min(basic, 1,80,000) × 0.12
tds = newRegimeTax(gross − 75,000)
take_home = gross − pf − pt − tds

Master formula · Take-home /month

One equation, six statutory inputs

CTC is gross to the employer, not the employee. To get monthly take-home, strip employer contributions, allocate the gross, then deduct the three things the employee actually pays. Apply rate × amount unconditionally — statutory caps are advisory badges, not gates.

Gross = CTC − Employer PF − Gratuity − Employer NPS
In-hand /mo = (Gross − Employee PF − PT − TDS) ÷ 12

Worked example · ₹12,00,000 CTC, metro, standard

CTC = 12,00,000

− Employer PF (₹15k cap × 12%) = 21,600

− Gratuity provision (4.81% basic) = 28,860

Gross = 11,49,540

− Employee PF / PT / TDS = 21,600 + 2,400 + 0

In-hand /mo ≈ ₹93,795

Methodology references

Where this calculator gets its numbers from

Every rate, cap and slab in this calculator is grounded in published Indian-context authority. We mix statute, government circulars, payroll-consultancy analysis and SaaS documentation so the math is reproducible by anyone running Indian payroll.

01 Indian statute · §6, §7

Code on Wages, 2019

Defines ‘wages’ and the 50% basic floor that anchors every structuring decision below.

02 Statute · Schedule II

EPF Act, 1952

Employee Provident Fund — 12% contribution on basic, statutory wage ceiling of ₹15,000/month.

03 Statute · §10, §12

Payment of Bonus Act, 1965

Statutory bonus 8.33% — applies where monthly basic ≤ ₹21,000; bonus wage capped at ₹7,000.

04 FY 2025-26 · §115BAC

Income-tax Act · New Regime

Tax slabs, ₹75,000 standard deduction, full §87A rebate up to ₹12,00,000 taxable income.

05 Consultancy · payroll

hinote.in payroll guides

Indian payroll consultancy reference for HRA, LTA, gratuity 4.81% factor and component design.

06 SaaS · payroll runtime

RazorpayX Payroll Docs

Production payroll software documentation cross-checking PF, ESI, PT slabs and TDS computation.

Reference table · every component and its rule

The full salary-breakup field set, the statutory source, and the rate or cap it carries in FY 2025-26.

Component	Side	Rule / rate	Statutory source	Taxability
Basic Salary	Earning	30–60% of CTC · ≥50% norm	Code on Wages, 2019	Fully taxable
Dearness Allowance (DA)	Earning	Linked to CPI · public sector	Industrial Disputes Act	Fully taxable
House Rent Allowance (HRA)	Earning	50% (metro) / 40% (non-metro) of basic	Income-tax Act §10(13A)	Conditional exempt
Leave Travel Allowance (LTA)	Earning	~1 month basic · 2 trips in 4-yr block	Income-tax Act §10(5)	Conditional exempt
Special Allowance	Earning	Balancer · Gross − rest	Component design	Fully taxable
Statutory Bonus	Earning	8.33% of min(basic, ₹7,000) · 12 mo	Payment of Bonus Act, 1965	Fully taxable
Conveyance Allowance	Earning	₹19,200/yr (disability only, new regime)	Rule 2BB	Conditional exempt
Children Education Allowance	Earning	₹1,200/yr (old regime)	§10(14) · Rule 2BB	Old regime only
Meal Vouchers	Perk	₹50/meal · digital only	§17(2) · Rule 3(7)	Exempt within cap
Employee PF	Deduction	12% of min(basic, ₹15,000)	EPF Act, 1952	80C deduction
Employer PF	Employer cost	12% of min(basic, ₹15,000)	EPF Act, 1952	Not in employee hand
ESI (Employee)	Deduction	0.75% of gross · if gross ≤ ₹21,000	ESI Act, 1948	Pre-tax
ESI (Employer)	Employer cost	3.25% of gross · same threshold	ESI Act, 1948	Not in employee hand
Gratuity provision	Employer cost	4.81% of annual basic (15/26 ÷ 12)	Payment of Gratuity Act, 1972	On exit ≥ 5 yrs
Professional Tax	Deduction	State-wise · ₹2,400/yr cap	Article 276, Constitution	Pre-tax
TDS on Salary (192)	Deduction	Slab rate · monthly average	Income-tax Act §192	Advance income tax
Employer NPS · 80CCD(2)	Employer cost	10% of basic (private) / 14% (govt)	Income-tax Act §80CCD(2)	Over-and-above deduction
Standard Deduction	Tax relief	₹75,000 flat (new regime FY 2025-26)	Income-tax Act §16(ia)	Auto-applied
§87A Rebate	Tax relief	Full rebate up to ₹12,00,000 taxable	Income-tax Act §87A	New regime
Health & Education Cess	Tax add-on	4% on income tax payable	Finance Act	On top of slab tax
Surcharge	Tax add-on	10/15/25% above ₹50L / 1Cr / 2Cr	Income-tax Act	High-income only

Salary Breakup Calculator — Frequently Asked Questions

The Indian payroll questions HR, Finance and Founders ask before signing off on a salary structure.

What is a salary breakup and why does India use it?

A salary breakup splits a single annual CTC into Basic, allowances, employer contributions and net deductions. It exists because Indian tax law (§10, §17) and labour statute (PF, ESI, Gratuity, Bonus) tax and provision each component differently — so the structure of the package changes both the employee’s take-home and the employer’s outflow.

Why is Basic typically 50% of CTC?

The Code on Wages, 2019 expects ‘wages’ (a defined term that maps closely to Basic + DA) to be at least 50% of total remuneration. Most Indian payrolls set Basic at 50% as a defensible default — any structure with Basic < 40% invites scrutiny under the same Code.

How is HRA exemption calculated?

HRA exemption under §10(13A) is the least of: (i) actual HRA received, (ii) rent paid − 10% of basic, (iii) 50% of basic (metro) or 40% (non-metro). The new regime does not allow HRA exemption — so a ‘Tax-Optimized’ structure in the new regime de-emphasizes HRA.

What does the ₹15,000 EPF wage cap mean?

Under the EPF Act, the employer’s 12% PF contribution is mandatory only on the first ₹15,000 of monthly basic wages. Employers may contribute on actual basic if they choose (most do for senior employees), but the statutory floor is the capped amount — ₹1,800/month each side.

Is statutory bonus part of CTC?

Yes. Under the Payment of Bonus Act, 1965, statutory bonus is payable to employees drawing ≤ ₹21,000/month at 8.33% of wages — calculated on min(actual basic, ₹7,000). Most employers fold this into the annual CTC line so the offer letter is a single number.

Why does the new regime show such low tax in this calculator?

Section 87A rebate now extends to taxable income up to ₹12,00,000 under the new regime (FY 2025-26). After the ₹75,000 standard deduction, a CTC up to ~₹12.75L can land at zero tax — which is exactly what the calculator reflects.

Does the calculator handle ESI?

ESI applies only where monthly gross is ≤ ₹21,000. The calculator surfaces this as a row in the Reference Table but excludes ESI from the live result because almost every CTC entered here will exceed the ceiling. For payrolls below the threshold, add 0.75% (employee) and 3.25% (employer) of gross.

Can I trust these numbers for a real offer letter?

The math here is rate × amount against published Indian statute and FY 2025-26 thresholds — it is reproducible by anyone. But every offer letter has edge cases (location-specific PT slabs, employee-specific deductions like §80C/HRA proof, sign-on bonuses, ESOPs). Use this as the structural skeleton, then run it through a payroll system like Superworks for final compliance sign-off.

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