Salary Breakup Generator 2025
Generate detailed salary structure from your CTC. See how your offer letter salary breaks down into Basic, HRA, Special Allowance, PF, Gratuity, and more. Perfect for understanding your compensation package.
Enter CTC Details
Total compensation as per offer letter
Typically 40-50% of gross salary
Usually 40-50% of basic salary
Configuration Options
How to Use This Calculator
- 1
Enter Your CTC
Input your annual Cost to Company as mentioned in your offer letter or job posting.
- 2
Adjust Basic Salary Percentage
Set the basic salary percentage (typically 40-50% of gross). Higher basic = higher PF but also higher retirement savings.
- 3
Configure Options
Select whether to include gratuity, bonus, and whether PF should be on full basic or capped.
- 4
Generate Breakup
Click generate to see your complete salary structure in offer letter format.
Understanding Salary Breakup Structure in India
What is Salary Breakup?
Salary breakup refers to the detailed distribution of your total compensation (CTC) into various components like Basic Salary, House Rent Allowance (HRA), Special Allowance, Provident Fund, Gratuity, and other benefits. This structure is crucial for understanding your actual take-home salary and tax implications.
Key Salary Components Explained
- Basic Salary: Core component, usually 40-50% of gross. Affects PF, HRA exemption, and gratuity calculation.
- House Rent Allowance (HRA): Typically 40-50% of basic. Partially tax-exempt if you pay rent.
- Special Allowance: Balancing component after basic and HRA. Fully taxable.
- Provident Fund (PF): 12% employee + 12% employer contribution on basic (capped at ₹15,000 basic).
- Gratuity: 4.81% of basic, paid after 5 years of service.
CTC vs Gross vs Net Salary
CTC (Cost to Company): Total employer expenditure including salary, PF, gratuity, insurance, etc.
Gross Salary: Total salary before any deductions (Basic + HRA + Allowances + Bonus).
Net Salary (In-Hand): Amount credited to your bank after PF, ESI, Professional Tax, and TDS deductions.
Frequently Asked Questions
Salary breakup is the detailed breakdown of your CTC (Cost to Company) into various components like Basic Salary, HRA, Special Allowance, PF contribution, Gratuity, and other benefits. This structure is typically mentioned in your offer letter and determines your monthly in-hand salary.
Basic salary is typically 40-50% of your gross salary (not CTC). Companies often keep basic at 40% to reduce PF liability. Higher basic means higher PF deduction but also better retirement savings, higher gratuity, and higher HRA exemption.
HRA is usually 40-50% of basic salary. Metro city employers often give 50% of basic as HRA, while non-metro companies give 40%. This is just the HRA component - actual tax exemption depends on rent paid and city classification.
Special Allowance is the balancing component in salary structure. After calculating Basic, HRA, and other fixed allowances, the remaining gross amount becomes Special Allowance. It is fully taxable and doesn't have any specific exemption.
Gratuity in CTC = Basic × 15/26 ÷ 12 = ~4.81% of Basic annually. This is employer's contribution kept aside for gratuity payment after 5 years of continuous service. You receive this amount when leaving the company after 5 years.
Gross salary is the total monthly/annual salary before deductions (Basic + HRA + Allowances + Bonus). CTC = Gross + Employer PF + Gratuity + Insurance + Other benefits. Gross is what shows on your payslip, CTC includes all employer costs.
Companies keep basic low (40% of gross) to reduce their PF liability. Higher basic = employer pays more PF (12% of basic). Low basic also means lower gratuity liability. However, higher basic benefits employees with better retirement savings.
In most companies, annual performance bonus is part of CTC. Statutory bonus (8.33% of basic) is mandatory for companies with 20+ employees. Variable pay, retention bonus, and joining bonus may be additional to CTC - check your offer letter carefully.
Tax-free components include: HRA (partially exempt based on rent paid), LTA (for actual travel), food coupons (up to ₹50/meal), NPS employer contribution (up to 10% of salary), and medical reimbursement. Basic salary and special allowance are fully taxable.
You can negotiate for: Higher basic (better for loans, retirement), higher HRA (if paying rent), flexi benefits (food coupons, LTA), NPS contribution (tax-free), and one-time joining bonus. Focus on optimizing take-home and tax savings.
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Disclaimer: All calculations are estimates based on current tax rules and regulations. Actual values may vary depending on your specific circumstances. Please consult a certified financial advisor or CA for personalized advice.