CTC Breakup Calculator
Convert CTC to in-hand monthly salary. Basic, HRA, special allowance, PF, gratuity, income tax — both old and new regime.
Metro = Delhi, Mumbai, Kolkata, Chennai only.
New regime is default from FY 2023-24.
Estimate based on a standard 50% basic structure. Actual breakup depends on your company's pay policy. Old-regime figure excludes HRA exemption — use the HRA Calculator for that. Tax figures assume no other deductions.
How CTC is split into salary components
Indian salary structures follow a standard convention where each component is derived as a percentage of CTC or Basic:
Basic = 50% of CTC HRA = 50% of Basic (metro) / 40% of Basic (non-metro) Employer PF = 12% of Basic, capped at 12% × ₹1,80,000 = ₹21,600 p.a. Gratuity = 15/26 × Basic/12 ≈ 4.81% of Basic (annual provision) Special Allow. = CTC − Basic − HRA − Employer PF − Gratuity Gross = CTC − Employer PF − Gratuity Employee PF = same as Employer PF (your own contribution, deducted) Standard Ded. = ₹75,000 (new regime) / ₹50,000 (old regime) Taxable income = Gross − Standard deduction Income tax = per-slab + 4% cess, with 87A rebate
Special allowance is the residual — it absorbs whatever is left after all structured components are filled. Real companies may include additional items like LTA, food coupons, fuel reimbursement, or NPS contributions. Those would reduce special allowance and may carry their own tax treatment.
The Employer PF and Gratuity provisions are part of your CTC but are not paid to you monthly. PF accumulates in your EPF account; gratuity is paid as a lump sum after 5 years of service. This is why your gross salary (what you see on your payslip) is meaningfully lower than your CTC.
Frequently asked questions
Why is my in-hand much lower than my CTC?▼
CTC (Cost to Company) includes everything the employer spends on you — including amounts you never receive as cash. Employer PF (12% of basic) goes into your provident fund, not your bank account. Gratuity (~4.81% of basic) is provisioned but paid only after 5 years of service. Employee PF (another 12% of basic, your own contribution) is deducted from your gross. And income tax is withheld as TDS. After all these, what reaches your account is typically 55–70% of CTC depending on your slab.
Why is basic set to 50% of CTC?▼
Most Indian companies historically set basic at 40–50% of CTC because EPF, gratuity, HRA, and leave encashment are all computed as percentages of basic. A higher basic means higher PF and gratuity contributions — so companies used to keep it low. The new Labour Codes (Code on Wages) will mandate that basic must be at least 50% of total remuneration when fully enforced, so 50% is both the current convention and the upcoming legal minimum.
Old vs new regime — which is better for me?▼
The new regime is simpler: lower headline rates, ₹75,000 standard deduction, and a full rebate u/s 87A up to ₹7L taxable income (effectively zero tax). The old regime can win only if you have substantial deductions — typically ₹4–4.5L or more across 80C (₹1.5L), 80D, HRA, home loan interest, NPS, etc. For most salaried employees under ₹15L CTC with no home loan, the new regime is better. This calculator shows both so you can compare directly.
Why is HRA exemption not included in the old-regime calculation?▼
HRA exemption under Section 10(13A) depends on your actual monthly rent, which this calculator does not ask. Including a rent field would make the form more complex and the estimate potentially misleading. For an accurate HRA exemption figure, use the HRA Calculator on Pyrelo and subtract the exempt HRA from the old-regime taxable income shown here.
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