CTC Calculator
Enter an annual Cost to Company and see the full salary breakup — Basic, HRA, allowances, employer PF, gratuity, and what actually reaches the employee.
Annual breakup
Employer cost (in CTC, not paid to you)
In hand
Income tax and Professional Tax are not deducted above — both depend on your tax regime, declarations and state. For a post-tax figure, use the take-home salary calculator.
How a CTC breakup is built
Cost to Company is the total annual amount an employer spends on an employee. It is not salary, and the gap between the two is where most offer-letter confusion comes from. CTC includes your gross salary plus employer-side costs you never receive as cash — the employer's PF contribution, the gratuity provision, employer ESI where applicable, and often insurance premiums.
The structure is normally built downward from CTC. Basic is fixed first, usually at 40–50% of CTC, because it drives PF, gratuity and HRA exemption. HRA follows at 50% of Basic in the metro cities (Delhi, Mumbai, Kolkata, Chennai) and 40% elsewhere, mirroring the exemption limits under the old tax regime. Employer PF and gratuity are then deducted, and whatever remains becomes the special allowance — a residual bucket rather than a designed component.
Setting Basic low inflates the special allowance and raises immediate take-home, which can look attractive on an offer. It also shrinks PF and gratuity, so it reduces long-term benefits. The Code on Wages defines "wages" such that excluded allowances cannot exceed 50% of total remuneration, which in practice pushes Basic + DA towards at least half of the structure. Confirm your own structure against current rules with your payroll or legal advisor before adopting it.
CTC vs gross vs in-hand
CTC is the employer's total spend. Gross salary is CTC minus employer-side costs — the amount your payslip starts from. In-hand is gross minus your own PF, ESI where applicable, Professional Tax and income tax. Each step down is real, which is why a ₹10 lakh CTC does not mean ₹83,000 a month in your account.
Frequently asked questions
What is included in CTC?⌄
CTC is everything the employer spends on you in a year. It includes your gross salary (Basic, HRA, allowances) plus employer-side costs you never receive as cash — the employer PF contribution, gratuity provision, employer ESI where applicable, and any insurance premium or bonus provision. This is why CTC is always higher than both gross salary and take-home pay.
What percentage of CTC should Basic salary be?⌄
There is no single statutory percentage, but 40–50% of CTC is the common Indian convention. Basic drives PF, gratuity and HRA exemption, so setting it too low reduces employee retirement benefits and can attract scrutiny — the Code on Wages defines "wages" such that excluded allowances cannot exceed 50% of total remuneration, which in practice pushes Basic + DA towards at least half.
Why is my take-home much lower than my CTC?⌄
Three deductions sit between them. Employer PF and gratuity are part of CTC but never paid to you in cash. Your own PF contribution (12% of Basic) is deducted from gross. Then income tax and Professional Tax are deducted. A CTC of ₹10 lakh commonly results in a take-home somewhere around ₹65,000–₹72,000 a month depending on structure and tax regime.
Is gratuity part of CTC?⌄
Most employers include a gratuity provision in CTC, usually calculated as 4.81% of Basic. It is a genuine cost to the employer, but you only receive it after completing five years of continuous service — so treating it as current income overstates what you will actually be paid.
How is HRA usually set in a CTC structure?⌄
HRA is conventionally 50% of Basic for employees in the metro cities (Delhi, Mumbai, Kolkata, Chennai) and 40% elsewhere, because that mirrors the maximum HRA exemption limits under the old tax regime. Under the new regime HRA exemption is not available, so the split matters less for tax but is still the standard structure.
Disclaimer: These calculators provide indicative estimates for FY 2025-26 based on standard statutory rules and the inputs you enter. Actual figures depend on your salary structure, state, applicable exemptions and the latest government notifications. Please consult a qualified payroll or tax professional before making decisions.