Salary Breakup Calculator India – Calculate Gross, Basic, HRA & In-Hand Salary
Calculate your complete Indian salary structure with line-by-line breakdowns of Basic Salary, House Rent Allowance (HRA), Special Allowances, Employee & Employer EPF, Professional Tax, and Net In-Hand Salary.
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FY 2026–27 (AY 2027–28)All calculations and financial outputs on SalaryGrid are estimates based on prevailing Indian statutory rules and standard mathematical formulas. Actual numbers may vary based on individual employer compensation policies, state-specific professional taxes, non-taxable allowances, and official banking terms. Always consult a qualified Chartered Accountant (CA) or certified financial planner before making legal or tax decisions.
Complete Component Breakup
| Component | Monthly (₹) | Annual (₹) | Type |
|---|---|---|---|
| Basic Pay | ₹50,000 | ₹6,00,000 | Earning |
| House Rent Allowance (HRA) | ₹20,000 | ₹2,40,000 | Earning |
| Special Allowance | ₹24,000 | ₹2,88,000 | Earning |
| Gross Salary (A) | ₹94,000 | ₹11,28,000 | Gross Pay |
| Employee EPF (12% of Basic) | -₹6,000 | -₹72,000 | Deduction |
| Professional Tax (PT) | -₹200 | -₹2,400 | Deduction |
| Income Tax (TDS Estimate) | -₹5,022 | -₹60,268 | Deduction |
| Net Monthly In-Hand Salary | ₹82,778 | ₹9,93,332 | Net Take-Home |
* All calculations are computed dynamically in compliance with Income Tax Act, 1961 provisions for FY 2026-27 (AY 2027-28) and EPFO rules.
Your employer's ₹12.0 LPA CTC does not mean ₹1,00,000 reaches your bank account every month. Statutory employee EPF (12%), employer PF contributions, state professional tax, and income taxes account for the ₹17,222/month difference. Your actual liquid take-home retention is 83% of CTC.
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Understanding Every Component in Your Indian Salary Breakup
An Indian corporate salary structure consists of distinct statutory, fixed, and variable heads. Here is how each component functions on your monthly pay slip:
1. Basic Salary (40–50%)
Core BaseThe primary taxable foundation of your salary slip. It forms the benchmark calculation base for mandatory retirement benefits (12% EPF) and statutory gratuity (15/26 formula). It is 100% taxable under Indian income tax laws.
2. House Rent Allowance (HRA)
Tax-ExemptAllowance provided to subsidize housing costs. Standardly allocated as 50% of Basic Pay in metro cities (Mumbai, Delhi, Kolkata, Chennai, Bengaluru) and 40% in non-metros. Partially or fully exempt from income tax under Section 10(13A) in the Old Tax Regime.
3. Special Allowance
TaxableThe balancing component of Indian pay slips that absorbs remaining compensation after Basic and HRA are set. Fully taxable with no direct exemptions, but does not increase employer EPF or gratuity liability.
4. Provident Fund (EPF - 12%)
StatutoryA mandatory retirement saving deduction of 12% of Basic Pay from the employee, matched by a 12% employer contribution (split into 3.67% EPF + 8.33% EPS pension). Earns official 8.25% p.a. government-backed compounding interest.
5. Professional Tax (PT)
State LevyA state government tax levied on salaried earners across states like Maharashtra, Karnataka, Tamil Nadu, Telangana, and Gujarat. Capped at a maximum of ₹200 per month (₹2,500 annually) and fully deductible under Section 16(iii).
6. Income Tax (TDS)
Tax WithholdingMonthly income tax withholding deducted by employers based on projected annual tax liability under your chosen tax regime (New Tax Regime with standard ₹75,000 deduction vs Old Tax Regime with 80C/80D investments).
Standard Salary Breakup Examples for Popular CTC Slabs
Realistic annual and monthly payroll distributions in India under the New Tax Regime (50% Basic Pay model):
₹5,00,000 CTC Breakup
₹41,667 Monthly CTC₹7,00,000 CTC Breakup
₹58,333 Monthly CTC₹10,00,000 CTC Breakup
₹83,333 Monthly CTC₹15,00,000 CTC Breakup
₹1,25,000 Monthly CTCFrequently Asked Questions
Clear answers to common questions about Indian salary breakup structures, basic pay benchmarks, and tax deductions.
What is a Salary Breakup / Compensation Structure in India?
A salary breakup is the itemized division of your annual Cost to Company (CTC) into individual earnings components (Basic Salary, HRA, Special Allowance, Bonuses) and statutory deduction components (Employee EPF, Employer PF, Gratuity, Professional Tax, and TDS). It determines your taxable income and net monthly take-home pay.
Why is Basic Salary kept at 40% to 50% of total CTC?
Indian corporate payrolls structure Basic Salary at 40%–50% of CTC because statutory benefits like EPF (12% of Basic) and Gratuity (15 days basic per year of service) are calculated directly on Basic Pay. Keeping Basic between 40%–50% balances statutory compliance with employee take-home liquidity while complying with the Indian Code on Wages guidelines.
How is House Rent Allowance (HRA) calculated and exempted?
HRA is typically allocated as 40% of Basic Salary for employees in non-metro cities and 50% of Basic Salary for metro cities (Delhi, Mumbai, Kolkata, Chennai, Bengaluru). Under the Old Tax Regime, HRA tax exemption is the lowest of: (1) Actual HRA received, (2) 50%/40% of Basic Pay, or (3) Rent paid minus 10% of Basic Salary.
What is the Special Allowance in Indian salary slips?
Special Allowance is a taxable balancing component used by HR teams to bridge the gap between fixed allowances (Basic + HRA) and the total agreed Gross CTC. Unlike Basic Pay, it does not attract additional PF or Gratuity liabilities, but is 100% taxable as salary income.
What is the difference between Gross Pay and Net Pay?
Gross Pay is the total earnings amount credited before any deductions (Basic + HRA + Special Allowance). Net Pay (In-Hand Salary) is the actual disposable cash credited to your bank account after subtracting mandatory deductions: Employee EPF (12%), Professional Tax (₹200/mo), and Income Tax TDS.
All calculations and financial outputs on SalaryGrid are estimates based on prevailing Indian statutory rules and standard mathematical formulas. Actual numbers may vary based on individual employer compensation policies, state-specific professional taxes, non-taxable allowances, and official banking terms. Always consult a qualified Chartered Accountant (CA) or certified financial planner before making legal or tax decisions.
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