Salary: Meaning and Purpose
A salary calculator breaks an annual CTC into monthly components such as basic, HRA, employer PF, gratuity and special allowance, and estimates the monthly pay before income tax.
Factors That Affect the Result
- Annual CTC
- Basic salary as a percentage of CTC
- HRA as a percentage of basic
- Employer and employee PF treatment
- Professional tax and other deductions
How the Salary Is Calculated
Basic = Basic % × Annual CTC ÷ 12
HRA = HRA % × Basic
Employer PF = 12% of basic (or of the PF wage ceiling)
Gratuity = 4.81% of basic
Special allowance = Monthly CTC − the components above
A ₹6,00,000 CTC with basic at 40% gives ₹20,000 basic, ₹10,000 HRA, ₹2,400 employer PF, ₹962 gratuity and ₹16,638 special allowance per month.
How to Use This Calculator
- 1Enter the values in the fields on the left. Use figures from your payroll or policy.
- 2The result updates instantly as you type. Change any input to compare scenarios.
- 3Copy the result or print it to attach to your records.
- 4Check the notes under the result for statutory limits and policy points that may apply.
Why It Matters
Candidates compare offers on take-home, not CTC, so a transparent breakup helps both HR and the candidate understand the real monthly pay.
Compliance note: This is an indicative breakup. Actual tax, professional tax and ESIC depend on the employee's declaration and state rules.