Salary breakup calculator
₹ 18,00,000 per year
Lower basic means more cash now. Higher basic means a bigger PF corpus and a larger HRA exemption. The table below shows both.
On a CTC of ₹ 18,00,000 with basic at 5%.
The annexure
| Basic | In hand / mo | PF / year | Tax / year |
|---|---|---|---|
| 40% | ₹ 1,24,331 | ₹ 1,72,800 | ₹ 1,32,829 |
| 45% | ₹ 1,22,718 | ₹ 1,94,400 | ₹ 1,30,582 |
| 50% | ₹ 1,21,105 | ₹ 2,16,000 | ₹ 1,28,336 |
| 55% | ₹ 1,19,493 | ₹ 2,37,600 | ₹ 1,26,090 |
| 60% | ₹ 1,17,860 | ₹ 2,59,200 | ₹ 1,24,082 |
Paste your CTC, get the annexure: how a typical Indian employer splits it into basic, HRA, allowances and PF, and which splits favour you.
Why the split matters more than people think
Two offers at the same CTC can pay differently every month. Basic pay drives three separate things: your provident fund deduction (12% of basic), your gratuity accrual (4.81% of basic) and the ceiling on your HRA exemption under the old regime. Move basic and all three move with it.
The table in the results above prices that trade-off directly: same CTC, five different basic percentages, and what each does to your monthly cash and your annual PF.
The components
- Basic pay. The anchor. Everything else is a percentage of it.
- HRA. 50% of basic in metros, 40% elsewhere. Exempt under the old regime to the extent you actually pay rent.
- Special allowance. The plug. Fully taxable, no exemption.
- Employer PF. 12% of basic, inside CTC but paid to your PF account.
- Gratuity. 4.81% of basic, and forfeited entirely if you leave before five years.
Frequently asked questions
What is a salary breakup?
The annexure to an offer letter that splits CTC into its components: basic pay, house rent allowance, special allowance, employer provident fund and usually a gratuity accrual. Employers rarely lead with it, but it determines your take-home and your tax.
What is a typical salary structure in India?
Basic is usually 40–50% of CTC, HRA is 50% of basic in metros and 40% elsewhere, employer PF is 12% of basic, gratuity is booked at 4.81% of basic, and special allowance absorbs whatever is left. On ₹18 LPA that gives basic ₹ 9,00,000, HRA ₹ 4,50,000 and special allowance ₹ 2,98,710.
Is a higher basic salary better?
It depends what you want. Moving basic from 40% to 60% of an ₹18 LPA CTC changes monthly take-home from ₹ 1,24,331 to ₹ 1,17,860, while annual PF rises from ₹ 1,72,800 to ₹ 2,59,200. Lower basic means more cash now; higher basic means more retirement corpus and a bigger HRA exemption.
Can I ask my employer to change my salary structure?
Sometimes, particularly at the offer stage or during an annual restructuring window. It costs the employer nothing since CTC is unchanged, so it is one of the easier things to ask for, but many companies run a fixed grid and cannot vary it per employee.
Does special allowance have any tax benefit?
No. Special allowance is fully taxable with no exemption attached. It exists purely as the balancing figure that makes the components add up to the CTC.
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