CTC breakup and take-home calculator

How it works

CTC is what the employer spends on you in a year. It usually includes your gross salary plus the employer’s own PF and ESI contributions and a provision for gratuity.

1. Basic = CTC × basic %. HRA = basic × HRA %.
2. Employer PF = 12% of basic, worked out on basic up to ₹25,000 a month. Gratuity provision = basic × 15 ÷ 26 per year of service, spread over 12 months.
3. If gross pay is up to ₹21,000 a month, employer ESI at 3.25% is also taken out of CTC.
4. Special allowance is whatever is left. Take-home = gross − employee PF − employee ESI − profession tax.

For example, a ₹6 lakh CTC with 50% basic in Maharashtra gives gross pay of about ₹45,798 a month and take-home of about ₹42,598 before income tax.

Things to know

• Income tax is not deducted here. Use the income tax calculator and divide by 12 for monthly TDS.
• Employers structure CTC differently. Some leave gratuity out, include bonus, or work out PF on full basic. Check your offer letter.
• Labour codes 50% rule: if allowances are more than half of total pay, the excess counts as wages for PF, ESI and gratuity. Keeping basic at 50% or more avoids that adjustment.
• PF on basic up to ₹25,000 only Needs review, and EDLI and PF admin charges are not included.
• This is a learning aid, not advice.