Salary Breakup Calculator — Calculations & Slabs for FY 2026-27

CTC (Cost to Company) is the total amount an employer spends on an employee per year. It includes direct components like basic salary and allowances, and indirect components like employer contributions to EPF and Gratuity. Take-home salary is the net cash salary you receive after deducting taxes, professional tax, and employee EPF contributions.

Basic salary forms the foundation of your pay structure. Keeping it at 40% to 50% of CTC ensures a balanced payroll that complies with code rules (like the Code on Wages requiring basic pay to be at least 50% of total salary). It also balances retirement contributions like EPF and Gratuity, which are directly calculated as a percentage of Basic.

HRA (House Rent Allowance) is typically configured as a percentage of your Basic salary. It is commonly set at 50% of Basic salary for employees living in metro cities (Delhi, Mumbai, Kolkata, Chennai) and 40% of Basic salary for employees in non-metro cities.

Yes. The employer's contribution to the Employee Provident Fund (12% of basic salary) is an expense incurred by the employer on your behalf. Therefore, it is included in your CTC, along with your own 12% deduction which is taken from your gross pay.

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.