Business SoftwareFree Salary & CTC Calculator
Break down a CTC into Basic, HRA, PF, ESI, Professional Tax and Net Take-Home Pay, with an optional New Tax Regime income tax estimate — no signup required.
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Create a free accountWhat is CTC?
Cost to Company is the total amount an employer spends on an employee in a year — salary components the employee receives, plus the employer's own PF and ESI contributions on top.
How the breakdown is calculated
Basic is a percentage of CTC, HRA is a percentage of Basic, PF is 12% of Basic (or the ₹15,000 wage ceiling if capped), and Special Allowance is whatever remains of Gross Salary after Basic and HRA.
Employer vs. employee contributions
Both the employer and employee contribute to PF and (when applicable) ESI. The employer's share adds to CTC without reaching your bank account; the employee's share is deducted from Gross Salary before payout.
Gross vs. net take-home
Gross Salary is Basic + HRA + Special Allowance. Net take-home is Gross Salary minus your own PF, ESI and Professional Tax deductions — and, if you estimate it, income tax as well.
Frequently asked questions
What is CTC (Cost to Company)?
CTC is the total yearly cost an employer bears for an employee — it includes take-home salary components (Basic, HRA, Special Allowance) plus the employer's own contributions (Employer PF, Employer ESI), not just what lands in the employee's bank account.
Why is my take-home salary lower than my CTC?
CTC includes employer contributions (Employer PF, Employer ESI) that never reach your bank account, plus your own PF, ESI and Professional Tax deductions come out of Gross Salary before you receive it. Take-home is what's left after all of these.
How is Basic salary usually decided?
There's no single legal percentage — 30-50% of CTC is common in practice. This calculator defaults to 40%, adjustable to match your own offer letter or company policy.
When does ESI apply?
ESI (Employees' State Insurance) applies only when an employee's monthly Gross Salary is ₹21,000 or below. Above that, no ESI contribution is deducted or contributed by either side — this calculator determines applicability automatically from your computed Gross Salary.
Is the PF wage ceiling cap mandatory?
By law, employers must contribute PF on Basic wages up to a ₹15,000/month ceiling; contributing on the full Basic above that is optional and depends on company policy. This calculator lets you toggle between the two.
Is the income tax (TDS) estimate accurate?
It's a simplified estimate using only the New Tax Regime FY 2025-26 slabs, the ₹75,000 standard deduction and the Section 87A rebate — it excludes other income, deductions, exemptions and the marginal relief provision near the rebate threshold. It is not a substitute for professional tax advice.