Salary Breakup Calculator (CTC to In-Hand)

CTC (Cost to Company) is the total annual expenditure an employer incurs on an employee. It includes Gross Salary plus employer contributions to retirement benefits like EPF (12% of basic) and gratuity provisions (4.81% of basic). Gross Salary is the amount before employee deductions (like employee EPF share and Professional Tax) are subtracted.

Under standard Indian payroll practices, HRA is calculated as a percentage of Basic Salary. For employees living in metro cities (Delhi, Mumbai, Kolkata, Chennai), HRA is set at 50% of the Basic Salary. For non-metro locations, it is set at 40% of the Basic Salary.

The statutory EPF employee contribution is 12% of Basic Salary. While it is mandatory for basic salaries up to ₹15,000 per month, employers often cap the basic salary component for PF calculations at ₹15,000/month (giving a maximum monthly PF deduction of ₹1,800) to optimize employee take-home pay. This calculator supports that capping mechanism.

Professional Tax is a state-level tax levied on salaried employees. In India, most states levy a maximum professional tax of ₹2,500 per year, which is typically deducted from the employee's salary at approximately ₹200 per month (with ₹300 in the final month in some states).