About the CTC Salary Structure Generator
This CTC salary structure generator turns an annual cost-to-company (CTC) figure into a typical Indian salary breakup: basic salary, house rent allowance (HRA), special allowance, employer provident fund (PF) contribution and gratuity provision. It then estimates gross salary, employee PF, professional tax and new-regime income tax to show the monthly in-hand salary you would actually receive.
Use it to understand an offer letter, to design a compliant structure as an HR or payroll professional, or to see how the basic percentage changes PF and take-home pay. Since the four Labour Codes took effect on 21 November 2025, the Code on Wages treats excluded allowances (HRA, conveyance and similar) above half of total remuneration as wages, which is why many employers now set basic at 50% of CTC.
Assumptions: PF is 12% of basic from both employer and employee, either on full basic or limited to the EPF wage ceiling of ₹25,000 a month that applies from 17 September 2026; gratuity is provisioned at 15/26 of a month’s basic per year (4.81%); income tax uses the new regime for tax year 2026-27 with the ₹75,000 standard deduction and the ₹12 lakh rebate. ESI, bonus, variable pay, NPS and old-regime exemptions such as HRA are not modelled.
With the default inputs, the monthly in-hand salary is ₹91,396.15. Change any value above to recalculate instantly.
How to use the ctc salary structure generator
- 1Enter your annual CTC from the offer letter.
- 2Set basic as a percentage of CTC (50% is the common post-Labour Code choice).
- 3Choose metro or non-metro HRA and how PF is calculated.
- 4Enter your state’s professional tax and choose whether to deduct income tax.
- 5Review the monthly and yearly breakup and your in-hand salary.
Formula and method
CTC includes everything the employer spends on you: gross salary plus the employer’s PF contribution and the gratuity provision. The generator first fixes basic as a percentage of CTC, sets HRA at 50% of basic for metro cities or 40% elsewhere (the percentages the income-tax HRA exemption uses), deducts employer PF and gratuity, and puts whatever is left into a special allowance so the components add back to CTC exactly.
Employee PF matches employer PF at 12%. Gratuity is provisioned at 15 days’ basic for every year of service, i.e. basic × 15/26 per year, or 4.81% of basic. Income tax uses the 2026-27 new-regime slabs on gross salary minus the ₹75,000 standard deduction, with the rebate that leaves resident individuals with no tax up to ₹12 lakh of taxable income, marginal relief, surcharge above ₹50 lakh and 4% cess.
- CTC
- Annual cost to company
- Basic%
- Basic salary as a share of CTC
- Gross
- Basic + HRA + special allowance
Worked examples
₹12 lakh CTC, 50% basic, metro, capped PF
Basic is ₹6,00,000 and HRA ₹3,00,000. PF is 12% of the ₹25,000 ceiling, ₹3,000 a month or ₹36,000 a year, and gratuity is 4.81% of basic (₹28,846). The special allowance of ₹2,35,154 balances the CTC. Taxable income after the standard deduction is under ₹12 lakh, so no tax is due and in-hand pay is about ₹91,396 a month.
₹25 lakh CTC, 40% basic, non-metro, PF on full basic
Basic is ₹10 lakh, HRA 40% of that, and PF 12% of full basic (₹1,20,000). Gross is ₹23,31,923; after the ₹75,000 standard deduction tax is ₹2,64,231 plus 4% cess = ₹2,74,800. In-hand pay is about ₹1,61,227 a month.
₹4 lakh CTC entry-level offer
Basic is ₹2,00,000 (₹16,667 a month), so PF is 12% of full basic — ₹2,000 a month — because it is under the ceiling. After gratuity, gross salary is ₹3,66,385; with no income tax, in-hand pay is about ₹28,332 a month after PF and professional tax.
Frequently asked questions
What is a good salary structure in India?+
A common structure sets basic at 40–50% of CTC, HRA at 40–50% of basic, employer PF at 12% of basic (or of the ₹25,000 ceiling) and gratuity at 4.81% of basic, with a special allowance making up the rest.
Does basic salary have to be 50% of CTC?+
The Code on Wages, in force since 21 November 2025, says that if excluded allowances such as HRA and conveyance exceed half of total remuneration, the excess counts as wages. Employers therefore often set basic (plus DA) at 50% or more of pay.
Why is my in-hand salary lower than CTC ÷ 12?+
CTC includes employer PF and gratuity, which you do not receive monthly, and your gross salary is further reduced by employee PF, professional tax and income tax. In-hand salary is often 75–90% of CTC ÷ 12.
How is gratuity calculated in CTC?+
Employers usually provision 4.81% of basic salary each year, because gratuity is 15 days’ wages for each year of service and a month is treated as 26 working days (15 ÷ 26 ÷ 12 = 4.81%).
What is the EPF wage ceiling in 2026?+
The statutory EPF wage ceiling rose from ₹15,000 to ₹25,000 a month with effect from 17 September 2026. Employers may still contribute on full basic if the employee agrees, which increases PF savings and lowers in-hand pay.
Is HRA taxable in the new tax regime?+
Yes. The new regime does not allow the HRA exemption, so the whole HRA is taxable. Under the old regime part of HRA can be exempt if you pay rent; use an HRA exemption calculator to compare.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.
Sources
- PIB — Four Labour Codes effective from 21 November 2025
- Gazette of India — The Code on Wages, 2019 (definition of wages, section 2(y))
- PIB — EPFO raises wage ceiling from ₹15,000 to ₹25,000 (effective 17 September 2026)
- Union Budget 2026-27 — Memorandum explaining the provisions (rates of income-tax)
- Income Tax Department — Salaried individuals: slabs, rebate and surcharge