Salary breakup — from CTC to take-home

Offer letters quote CTC; employees ask what lands in the bank. This is the bridge — every line an employer must budget and every deduction the law requires.

The rules this tool applies

• CTC = gross + employer PF + gratuity provision (+ employer ESI). Gross is what the payslip shows as earnings; everything the employer pays on top is "cost to company".
• Basic: commonly 40–50% of CTC. Under the Code on Wages, "wages" (basic + DA + retaining allowance) must be at least 50% of total remuneration for PF/gratuity purposes once the Code is notified — structures with tiny basics are on borrowed time.
• HRA: 50% of basic in the four metros, 40% elsewhere — the ceiling for the employee's HRA exemption (old regime only).
• PF: 12% employee + 12% employer on basic (+DA), statutory ceiling ₹15,000 (₹1,800 each); of the employer's 12%, 8.33% goes to EPS (capped at ₹1,250). Employers may contribute on full basic by policy.
• ESI: gross ≤ ₹21,000 → 0.75% employee, 3.25% employer; once covered, stays covered till the end of the contribution period (Apr–Sep / Oct–Mar).
• Professional tax: state levy on the employee, deducted by the employer — ₹200/month at most (₹2,500/yr), slabs and gender rules differ by state; none in Delhi, UP, Rajasthan, Haryana, Uttarakhand.
• TDS: the employer estimates annual tax under the regime the employee declares (new by default) and deducts one-twelfth — see the TDS-on-salary tool for declarations and mid-year changes.

Worked example

CTC ₹6,00,000, basic 40%, non-metro, Karnataka, new regime, gratuity in CTC: basic ₹20,000, HRA ₹8,000, employer PF ₹1,800, gratuity ₹962, gross ≈ ₹47,238, special ≈ ₹19,238; deductions: PF ₹1,800, PT ₹200, TDS ₹0 (taxable ₹4.9 lakh → rebate) → in-hand ≈ ₹45,238, about 90% of monthly CTC.

Edge cases to know

• New joiners above ₹15,000 basic who were never PF members can opt out (Form 11) — most employers still enrol.
• Bonus (Payment of Bonus Act) applies up to ₹21,000 wages — 8.33% minimum; not modelled in the monthly figure.
• Variable pay / retention bonus inflate CTC but not in-hand — ask which components are assured.
• Flexible benefits (LTA, meal cards, fuel) are exempt only in the old regime and only with bills.

Related tools

• PF & ESI calculator — the statutory lines in detail.
• Professional tax by state.
• TDS on salary — with declarations.
• Payslip generator — print this structure.

Last verified: 18 September 2026 — PF/EPS/EDLI rates and ₹15,000 ceiling per EPFO; ESI 0.75/3.25 and ₹21,000 per ESIC (unchanged since July 2019); PT slabs per state Acts (data/pt_states.json); standard deduction and slabs per the Income-tax Act 2025 · Not tax or legal advice.