| Component | Per month |
|---|---|
| Basic | ₹40,000 |
| House rent allowance (HRA) | ₹20,000 |
| Special allowance (balance) | ₹38,200 |
| Gross salary | ₹98,200 |
| Employee PF deduction | - ₹1,800 |
| In hand before income tax | ₹96,400 |
| Employer PF (inside CTC) | ₹1,800 |
| Annual gross | ₹11,78,400 |
This is an estimate for planning, not tax, legal or accounting advice. Check figures with a qualified professional before you rely on them.
How it works
CTC (cost to company) is what the employer spends on you in a year. It is split into basic pay, allowances such as HRA, and employer contributions such as provident fund. The special allowance is simply what is left of the CTC after the fixed components, so the pieces always add back to the CTC.
In-hand pay shown here is before income tax (TDS under section 392, was 192) and professional tax, which depend on your tax regime and state. Use the income-tax estimator for the tax part.
Formula notes
- Basic = CTC × basic %. HRA = basic × HRA %.
- Employer PF = 12% of PF wage. PF wage = basic, or basic up to ₹15,000 a month when the wage ceiling box is ticked.
- Special allowance = CTC − basic − HRA − employer PF.
- Employee PF is taken at 12% of the same PF wage and deducted from gross.
- Gratuity, bonus and insurance are not carved out of the CTC here.
Sources
Estimate, not tax advice. Check figures with a qualified professional before you rely on them.
Common questions
Why is my in-hand salary lower than gross divided by twelve?
The gross here is before deductions. Employee PF, professional tax and income tax (TDS) are deducted from it, so the amount credited to your bank account is lower.
Does the employer PF come out of my CTC?
In most CTC offers, yes. The employer PF is part of the CTC, so a higher PF contribution leaves a smaller special allowance. Check your offer letter for how your company treats it.
What basic percentage should I use?
Use the split in your offer letter or salary structure. Many companies set basic between 40% and 50% of CTC.
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