Split the CTC. Stay compliant. CTC breakup calculator.
Turn a CTC figure into a month-by-month salary structure — basic, HRA, bonus, allowances and every employer statutory cost — and check it against the Code on Wages before the offer letter goes out.
Your inputs
Indicative only. Professional tax and income tax are deducted from gross salary on top of the employee PF and ESI shown.
Request salary structuring →How the CTC breakup is calculated
The calculator works backwards from CTC: it takes out every employer cost first, so what is left is the gross salary you can split into basic, HRA and allowances.
Salary structures at three CTCs
Basic + DA at 50% of CTC, HRA at 40% of basic, PF on the ₹25,000 ceiling, statutory bonus where eligible. Monthly figures, rounded to the rupee.
| Component | ₹2.4 lakh CTC | ₹3 lakh CTC | ₹12 lakh CTC |
|---|---|---|---|
| Basic + DA | ₹10,000 | ₹12,500 | ₹50,000 |
| HRA | ₹4,000 | ₹5,000 | ₹20,000 |
| Special allowance | ₹2,936 | ₹4,358 | ₹24,595 |
| Gross salary | ₹16,936 | ₹21,858 | ₹94,595 |
| Statutory bonus | ₹833 | ₹1,041 | — |
| Employer PF | ₹1,200 | ₹1,500 | ₹3,000 |
| Employer ESI | ₹550 | — (gross above ₹21,000) | — |
| Gratuity provision | ₹481 | ₹601 | ₹2,405 |
| CTC per month | ₹20,000 | ₹25,000 | ₹1,00,000 |
Look at the ₹3 lakh column: gross lands at ₹21,858, just above the ESI limit, so there is no ESI. Structure the same CTC with a lower gross and ESI (3.25% + 0.75%) comes back in — check where your pay bands sit against ₹21,000.
Structuring rules that changed in 2025–26
50% wage rule (21 Nov 2025)
Basic + DA must be at least half of total pay. Structures with a low basic and a large special allowance no longer cut PF, bonus or gratuity — the excess is added back.
PF ceiling ₹25,000 (17 Sep 2026)
Capped employer PF rises from ₹1,800 to as much as ₹3,000 a month. For a fixed CTC this lowers gross salary by up to ₹1,200 unless you re-cut the offer.
Bonus limits (25 Aug 2026)
Statutory bonus applies where wages are ₹21,000 a month or less and is calculated on wages capped at the higher of ₹7,000 and the minimum wage (S.O. 4711(E) and 4710(E), effective from 21 November 2025).
Minimum wage floor
Basic + DA cannot fall below the State's notified minimum wage for the job and zone. Check yours with our minimum wage calculator.
Common CTC mistakes employers make
Most compliance notices on salary structures trace back to one of these.
CTC questions, answered
What is the minimum basic salary under the new Labour Codes?+
Basic + DA must be at least 50% of total remuneration. Allowances beyond that are added back to wages for PF, gratuity and other statutory calculations.
Why is gratuity shown inside CTC?+
Most employers provision 4.81% of wages every month for the gratuity they will owe, and include it in the CTC they quote.
Should bonus be part of CTC?+
For employees whose wages are ₹21,000 a month or less, statutory bonus of at least 8.33% is payable by law, so it is usually budgeted inside CTC.
Is employer PF part of CTC?+
Usually yes — the employer's 12% is part of the cost of employing someone. EDLI and PF admin charges (0.5% each) are often left out of CTC and absorbed as overhead.
What is the difference between CTC, gross and take-home?+
CTC is the employer's total cost. Gross is CTC minus employer PF, ESI, gratuity and bonus provisions. Take-home is gross minus employee PF, ESI, professional tax and income tax — see our take-home salary calculator.
How much HRA should I give?+
There is no legal minimum. 40% of basic (50% in the metro cities named in the tax rules) matches the income-tax exemption formula under the old regime, which only matters to employees who choose that regime.
Does the new PF ceiling change my CTC?+
Only if PF was capped and Basic + DA is above ₹15,000. Employer PF rises by up to ₹1,200 a month; within a fixed CTC, gross salary falls by the same amount.
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