Confused about your salary breakup? Use our Salary Breakup Calculator to get a clear breakdown of CTC, gross salary, deductions, & net take-home pay. Ideal for job seekers, employees, and HR professionals. Calculate now for free!
Note: Only Gross and State is mandatory, others are optional. Please refer below for uses guidance.
Salary Breakup Calculator
| Components | Input Values |
|---|---|
| Enter Gross Salary: | |
| Minimum Wage - Basic: | |
| Minimum Wage - DA: | |
| Special Allowance: | |
| VPF Amount: | |
| Income Tax: | |
| Service Weightage: | |
| Gratuity Applicability: | |
| Bonus Applicability: | |
| Select State: | |
| Basic Percentage: | |
| HRA Percentage: |
Ever wondered why your in-hand salary is much lower than your CTC?
If you’ve ever been excited about a job offer only to be disappointed by your actual take-home pay, you’re not alone. Many employees in India struggle to understand why there’s a significant difference between the Cost to Company (CTC) and their net salary. This confusion often leads to poor financial planning and unrealistic salary expectations.
Why Understanding Salary Components is Crucial
Knowing how your salary is structured is essential for:
✅ Better Financial Planning – Helps in budgeting monthly expenses.
✅ Effective Salary Negotiation – Know what to ask for during job discussions.
✅ Tax Optimization – Plan tax-saving investments wisely.
Many employees fail to realize that PF deductions, taxes, and employer contributions impact their take-home salary. That’s where a Salary Breakup Calculator comes in handy!
How a Salary Breakup Calculator Helps You
A Salary Breakup Calculator simplifies salary calculations by instantly breaking down your:
🔹 CTC vs. Gross Salary vs. Net Salary
🔹 HRA, PF, ESI, and other deductions
🔹 Taxable Income & Take-Home Pay
Instead of manually calculating complex salary components, this tool does it in seconds, ensuring accuracy and transparency.
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| Salary Breakup Calculator |
Who Should Use a Salary Breakup Calculator?
This tool is useful for everyone, including:
👨💼 Job Seekers – To understand the actual in-hand salary before accepting an offer.
🏢 Employees – To plan finances, tax savings, and investment decisions.
📊 HR Professionals – To prepare salary structures and offer letters with clarity.
By using a Salary Breakup Calculator, you can gain full control over your salary structure and make informed financial decisions.
👉 Ready to calculate your salary? Let's dive deeper into how it works! 🚀
What is a Salary Breakup Calculator?
Definition and Purpose
A Salary Breakup Calculator is an online tool designed to break down your Cost to Company (CTC) into various salary components, including gross salary, deductions, and net take-home pay. It helps employees and job seekers quickly determine how much salary they will actually receive after taxes and deductions.
This tool is particularly useful for professionals who want to:
✔️ Understand their salary structure before accepting a job offer.
✔️ Plan their monthly expenses and savings based on take-home pay.
✔️ Calculate tax deductions such as TDS, PF, and ESI.
How It Simplifies Complex Salary Calculations
Manually calculating your salary breakup can be confusing and time-consuming, especially with multiple deductions involved. A Salary Breakup Calculator simplifies the process by:
🔹 Automatically breaking down CTC into key components like basic salary, HRA, and allowances.
🔹 Calculating deductions such as Provident Fund (PF), Employee State Insurance (ESI), and Professional Tax.
🔹 Providing instant take-home salary figures, removing the need for complex formulas or spreadsheets.
Benefits of Using an Online Salary Breakup Calculator
✅ Saves Time & Increases Accuracy – Eliminates manual errors and miscalculations.
✅ Easy to Use – Just enter your CTC, deductions, and tax details, and get instant results.
✅ Helps in Salary Negotiation – Know exactly how much you'll take home before signing a job offer.
✅ Tax Planning & Investment Decisions – Get a clear picture of taxable income and plan deductions accordingly.
By using a Salary Breakup Calculator, you can take control of your salary, ensure transparency in your earnings, and make informed financial decisions.
👉 Next, let’s break down the key components of your salary! 🚀
Salary Structure Breakdown: What Goes Into Your Salary?
Understanding the salary structure is crucial for employees to decode their CTC (Cost to Company) and figure out their actual take-home salary. Your salary consists of multiple fixed and variable pay components, some of which are taxable, while others are deductions that impact your net income.
Fixed & Variable Pay Components Explained
Your salary is broken down into the following key components:
| Salary Component | Description | Taxable? |
|---|---|---|
| CTC (Cost to Company) | The total amount your employer spends on you, including salary and benefits. | No |
| Gross Salary | CTC minus employer's PF and other benefits; includes all earnings before deductions. | Partially |
| Basic Salary | A fixed component, usually 40-50% of gross salary, forms the basis for PF and HRA. | Yes |
| HRA (House Rent Allowance) | Allowance to cover rent expenses, partially exempt under Section 10(13A) of the IT Act. | Partially |
| Dearness Allowance (DA) | Paid to public sector employees to offset inflation impact. | Yes |
| Performance Bonuses | Variable pay based on individual/company performance. | Yes |
| Provident Fund (PF) Contributions | 12% of Basic Salary deducted towards EPF; employer also contributes the same. | No (exempt) |
| Professional Tax | A state-imposed tax (varies by state, max ₹2,500 per year). | Yes |
| Income Tax (TDS) | Tax deducted at source based on your total taxable income. | Yes |
Sample Salary Breakup Table (For ₹10 LPA Example)
Let’s break down a ₹10 Lakh Per Annum (₹10 LPA) salary to see how much you actually take home:
| Salary Component | Amount (₹) |
|---|---|
| CTC (Cost to Company) | 10,00,000 |
| Employer’s PF Contribution (12%) | -1,20,000 |
| Gross Salary | 8,80,000 |
| Basic Salary (40% of Gross Salary) | 3,52,000 |
| HRA (40% of Basic Salary for Metro Cities) | 1,40,800 |
| Other Allowances | 3,87,200 |
| Employee’s PF Contribution (12%) | -42,240 |
| Professional Tax | -2,400 |
| Income Tax (TDS Estimate) | -80,000 |
| Net Take-Home Salary | 7,55,360 (Approx.) |
📌 Note: This is just an estimate. Your actual tax deductions and net salary may vary based on investments, deductions (80C, 80D), and other exemptions.
Key Takeaways from the Salary Breakup
✔️ Your CTC is NOT your take-home salary – employer contributions (like PF) are included in CTC but not in your in-hand salary.
✔️ Basic Salary affects your PF & HRA – a higher basic salary increases your deductions.
✔️ Proper tax planning can increase your net salary – by investing in tax-saving instruments like PPF, NPS, ELSS, etc.
👉 Next, let’s see how you can calculate your salary breakup using an online calculator! 🚀
How to Use a Salary Breakup Calculator? (Step-by-Step Guide)
A Salary Breakup Calculator is an easy-to-use tool that helps employees, job seekers, and HR professionals instantly determine the net take-home salary after considering all deductions and allowances.
Follow this step-by-step guide to accurately calculate your salary breakup.
Step 1: Enter Your CTC or Gross Salary
- CTC (Cost to Company) is the total salary package offered by the employer.
- Gross Salary is derived after deducting employer contributions (like PF, Gratuity, etc.) from CTC.
- If you don’t know your Gross Salary, the calculator will automatically estimate it based on your CTC.
Step 2: Input Your Basic Salary Percentage
- Basic Salary is usually 40-50% of Gross Salary (varies by company policy).
- Higher Basic Salary increases PF deductions but also increases HRA benefits.
- The calculator will use this percentage to determine other salary components like HRA, DA, PF contributions, etc.
Step 3: Select Additional Deductions (PF, ESI, TDS, etc.)
- Provident Fund (PF): If applicable, 12% of Basic Salary is deducted, and an equal amount is contributed by the employer.
- Employee State Insurance (ESI): Applicable if your monthly salary is ₹21,000 or below, with 0.75% employee deduction and 3.25% employer contribution.
- Tax Deducted at Source (TDS): Based on applicable income tax slabs after deductions.
Step 4: Calculate Taxable Income & Net Take-Home Pay
- The calculator will subtract all applicable taxes, PF, ESI, and professional tax to determine the exact taxable income.
- After tax deductions, you get the final Net Take-Home Salary – the actual amount you receive in your bank account.
📌 Sample Salary Breakup Calculation (₹10 LPA Example)
| Step | Details | Amount (₹) |
|---|---|---|
| CTC (Offered by Employer) | Total cost to the company | 10,00,000 |
| Less: Employer’s PF Contribution (12%) | Not part of in-hand salary | -1,20,000 |
| Gross Salary | Amount before deductions | 8,80,000 |
| Basic Salary (40% of Gross Salary) | Used for PF & HRA calculations | 3,52,000 |
| HRA (40% of Basic Salary - Metro Cities) | Partially tax-exempt | 1,40,800 |
| Other Allowances | Special allowances, variable pay, etc. | 3,87,200 |
| Less: Employee’s PF Contribution (12%) | Deducted from salary | -42,240 |
| Less: Professional Tax | State-based deduction (Max ₹2,500 annually) | -2,400 |
| Less: Estimated Income Tax (TDS) | Based on income slab | -80,000 |
| 📌 Net Take-Home Salary | Final amount received in hand | ₹7,55,360 (Approx.) |
💡 Pro Tip: Use tax-saving investments under Section 80C, 80D, and HRA exemptions to reduce your taxable income and increase take-home salary.
Why Use a Salary Breakup Calculator?
✅ Saves Time & Ensures Accuracy – No manual calculations needed.
✅ Avoid Surprises in Your Salary – Know exactly how much you’ll receive.
✅ Plan Your Salary Negotiation – Helps in understanding how much hike you need.
✅ Optimize Your Tax Deductions – See how much you can save legally.
🔗 Want to calculate your salary breakup now? Try HR Calcy's Salary Calculator! 🚀
Why Is There a Difference Between CTC and Take-Home Salary?
Many employees feel disappointed when they see a huge difference between their CTC and actual in-hand salary. The reason? Several deductions and employer contributions don’t reflect in your take-home pay. Let’s break it down step by step.
📌 Explanation of Salary Deductions
Your CTC (Cost to Company) includes multiple components, but not all of it reaches your bank account. Several deductions reduce the final amount you receive. Here’s what happens:
1️⃣ Provident Fund (PF) Deduction – 12% of your Basic Salary is deducted as Employee Provident Fund (EPF).
2️⃣ Professional Tax – A small state-imposed tax (varies from state to state, max ₹2,500/year).
3️⃣ Income Tax (TDS - Tax Deducted at Source) – Based on your taxable income after deductions.
4️⃣ Employee State Insurance (ESI) – If your salary is ₹21,000 or less, 0.75% of salary is deducted.
5️⃣ Other Deductions – Loan EMIs, salary advances, or company-specific deductions (if applicable).
These deductions directly impact your net take-home salary, which is the final amount credited to your account.
📌 Tax Implications & Savings
Income Tax (TDS) is the biggest factor affecting take-home salary. However, smart tax planning can help reduce this burden:
✅ Use Section 80C Deductions – Invest in PPF, EPF, ELSS, NPS, Life Insurance, etc. to save up to ₹1.5 lakh in taxes.
✅ Claim HRA Exemption – If you live in a rented house, you can get tax benefits on House Rent Allowance (HRA).
✅ Medical Insurance (Section 80D) – Save tax on health insurance premiums for yourself and family.
✅ Standard Deduction (₹50,000 automatically applied) – Reduces taxable income for salaried individuals.
By optimizing these deductions, you can increase your net take-home salary legally.
📌 Employer Contributions That Don’t Reflect in Take-Home Salary
Employers add several benefits to CTC, but these aren’t part of your in-hand salary. Some common ones include:
| Component | Who Pays? | Impact on Take-Home Salary? |
|---|---|---|
| Employer’s PF Contribution (12% of Basic Salary) | Employer | Not part of in-hand salary, goes to EPF account. |
| Gratuity (4.81% of Basic Salary) | Employer | Paid only after completing 5 years in a company. |
| Medical Insurance | Employer | Covers employee's health, not included in salary. |
| Food Coupons / Sodexo | Employer | Given as perks, may not be convertible to cash. |
| Annual Bonus / Variable Pay | Employer | Paid once a year or quarterly, not part of monthly salary. |
Key Takeaway: Your CTC is NOT your take-home salary because it includes employer-paid contributions and benefits that you don’t receive as cash.
💡 How to Maximize Your Take-Home Salary?
✔️ Negotiate a Higher Basic Salary – A higher basic salary means higher PF deductions, but it also increases HRA benefits.
✔️ Opt for More Tax-Free Allowances – Ask for meal coupons, reimbursements, and fuel allowances instead of taxable salary.
✔️ Invest in Tax-Saving Schemes – Reduce your taxable income and save more.
👉 Use a Salary Breakup Calculator to See Your Exact Take-Home Salary Instantly! 🚀
Benefits of Using an Online Salary Breakup Calculator
A Salary Breakup Calculator is a powerful tool that helps you accurately determine your net take-home salary after all deductions. Instead of manually calculating your salary components, you can get instant and error-free results in just a few clicks.
Here’s why you should use an online salary breakup calculator:
📌 1. Saves Time & Ensures Accuracy
✅ No need for manual calculations – Just enter your CTC, and the calculator does the rest.
✅ Eliminates errors – Avoid mistakes in tax calculations and salary deductions.
✅ Instant salary breakdown – Get a clear breakup of your Basic Salary, HRA, PF, Taxes, and Take-Home Pay within seconds.
💡 Example: Instead of manually calculating PF (12%), HRA (40%), and tax deductions, a salary calculator automates everything and gives you precise results instantly.
📌 2. Helps in Salary Negotiation
✅ Understand the difference between CTC and in-hand salary before accepting a job offer.
✅ Negotiate a better salary structure by adjusting tax-free components like HRA, LTA, meal vouchers, etc.
✅ Compare multiple salary packages and choose the one that gives you the highest take-home pay.
💡 Example: If a company offers you ₹10 LPA, you can use a salary breakup calculator to check how much you’ll actually receive after deductions and decide whether to negotiate a better offer.
📌 3. Useful for Tax Planning & Investments
✅ Estimate taxable income and plan tax-saving investments accordingly.
✅ Optimize deductions under Section 80C, 80D, and HRA to reduce tax liability.
✅ Plan better investments by knowing your exact take-home salary.
💡 Example: If your taxable income is ₹8,00,000, the calculator will suggest how much you need to invest in PPF, ELSS, or NPS to bring it down and save on taxes.
Final Thoughts
A Salary Breakup Calculator is an essential tool for employees, job seekers, and HR professionals. Whether you’re negotiating a salary, planning your finances, or filing taxes, this tool ensures transparency and helps you make informed decisions.
🔗 Want to check your exact take-home salary? Try HR Calcy’s Salary Breakup Calculator today! 🚀
Top Salary Breakup Calculators in India (2025)
Using a Salary Breakup Calculator helps employees and job seekers accurately estimate their take-home salary after deductions. Here are some of the best online salary breakup calculators in India for 2025:
📌 1. HR Calcy – Best for Accurate Salary Breakdown
🔗 HR Calcy Salary Breakup Calculator
✅ Key Features:
- Instant salary structure breakdown (CTC, Gross, Net Salary, Deductions)
- Tax estimation based on current Indian tax slabs
- Includes PF, ESI, TDS, and Professional Tax calculations
- User-friendly interface and mobile-friendly design
💡 Why Choose HR Calcy?
HR Calcy provides a detailed, error-free salary breakup tailored for Indian employees, helping with salary negotiations and tax planning.
📌 2. Other Reputed Salary Breakup Calculators
🔹 ClearTax Salary Calculator
- Helps calculate in-hand salary, tax deductions, and PF contributions
- Suitable for tax-saving strategies
🔹 TaxBuddy Salary Calculator
- Provides a breakdown of CTC vs. Gross Salary vs. Take-Home Pay
- Includes Section 80C tax deduction suggestions
🔹 HRA & Salary Tax Calculator (Income Tax India e-Filing Portal)
- Official government tool for calculating salary tax and HRA exemptions
- Ideal for tax planning and deductions
🔹 Razorpay Salary Calculator
- Best for freelancers and startup employees
- Estimates salary components and tax deductions
Which Salary Calculator Should You Use?
If you want the most comprehensive and user-friendly experience, HR Calcy is the best choice. For tax-specific calculations, ClearTax and TaxBuddy can help.
👉 Want to check your salary breakup now? Use HR Calcy’s Salary Breakup Calculator for instant results! 🚀
Conclusion: Plan Your Finances Smartly!
Understanding your salary structure is crucial for better financial planning, salary negotiations, and tax savings. Many employees focus only on the CTC (Cost to Company), but knowing your take-home salary helps you manage expenses, investments, and savings efficiently.
A Salary Breakup Calculator simplifies this process by giving you an instant salary breakdown, including Basic Salary, HRA, PF, Taxes, and Net Take-Home Pay. Whether you’re a job seeker, working professional, or HR manager, this tool ensures transparency and accuracy in salary calculations.
🔹 Want to Know Your Exact Take-Home Salary?
✅ Avoid surprises in your payslip
✅ Plan your salary negotiation wisely
✅ Optimize tax-saving investments
👉 Try the HR Calcy Salary Breakup Calculator now and get your accurate salary breakdown in seconds! 🚀
FAQ
How do I calculate my net salary from my CTC?
To calculate your net (take-home) salary from your CTC:
- Step 1: Subtract Employer Contributions (PF, Gratuity, Insurance) from CTC → This gives Gross Salary.
- Step 2: Deduct Employee Contributions (PF, ESI, Professional Tax) from Gross Salary.
- Step 3: Subtract Income Tax (TDS) based on your tax slab.
- Final Take-Home Salary: The remaining amount is your Net Salary (in-hand salary).
Quick Solution: Use the HR Calcy Salary Breakup Calculator for instant and accurate results.
What is the difference between Gross Salary and Net Salary?
| Salary Component | Definition | Example (₹10 LPA CTC) |
|---|---|---|
| CTC (Cost to Company) | Total salary package offered by employer, including employer-paid benefits. | ₹10,00,000 |
| Gross Salary | Salary before deductions like PF, tax, etc. | ₹8,80,000 |
| Net Salary (Take-Home Salary) | Final amount credited to your bank after all deductions. | ₹7,55,360 (Approx.) |
Key Takeaway: Gross Salary includes all allowances, while Net Salary is what you actually receive after tax, PF, and deductions.
How much tax is deducted from my salary?
The tax deduction depends on your annual taxable income and the income tax slab applicable.
Income Tax Slabs for FY 2024-25 (New Regime):
| Annual Income (₹) | Tax Rate |
|---|---|
| Up to ₹3,00,000 | No Tax |
| ₹3,00,001 - ₹6,00,000 | 5% |
| ₹6,00,001 - ₹9,00,000 | 10% |
| ₹9,00,001 - ₹12,00,000 | 15% |
| ₹12,00,001 - ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Example Tax Calculation for ₹10 LPA (New Regime):
- Taxable Income: ₹10,00,000
- Tax Calculation: ₹3,00,000 (No Tax) + ₹3,00,000 (5%) + ₹3,00,000 (10%) + ₹1,00,000 (15%)
- Total Tax Payable: ₹75,000 (Approx.)
Tip: Maximize tax-saving options like Section 80C (Investments), HRA (Rent), and NPS (Retirement Savings) to reduce taxable income.
Use HR Calcy Salary Calculator for exact tax and salary breakup.