About the CTC Breakup
Cost to company (CTC) is what the employer spends; take-home is what the employee receives. In between sit the employer's provident-fund and ESI contributions, a gratuity provision where the employer includes it, and the employee's own PF and ESI deductions. This calculator builds a monthly structure from a CTC and the basic-salary percentage you choose, at the notified contribution rates and wage ceilings.
It is meant for small employers writing an offer letter, for HR teams checking a structure, and for candidates comparing offers. Basic pay drives PF and gratuity, so a lower basic raises the take-home today at the cost of retirement savings; the tool lets you see both effects. HRA is set at 50 % of basic (the metro ceiling for the exemption), and the balance of gross is shown as a special allowance.
Income tax is not deducted here because it depends on the regime and the individual's deductions — use the income-tax regime calculator with the gross figure from this tool for the post-tax number.
How to use it
- 1Enter the annual CTC.
- 2Choose the basic-salary percentage of gross (40–50 % is common).
- 3Say whether the employer's PF is on the statutory ceiling of basic and whether a gratuity provision is part of the CTC.
- 4Read the monthly gross, the components, both sides of PF and ESI, and the take-home before tax.
How this is calculated
Gross = CTC − employer PF − employer ESI − gratuity provision (iterated, since contributions depend on gross) Employer PF = 12 % of basic (or of the ₹15,000 ceiling); employee PF = 12 % of the same base ESI = 3.25 % (employer) and 0.75 % (employee) of gross, only when gross ≤ ₹21,000 per month Gratuity provision = 4.81 % of basic when included · HRA = 50 % of basic · Special allowance = gross − basic − HRA Take-home before tax = gross − employee PF − employee ESI
Rates used
- EPF employee contribution12 % of basic + DA · EPF Act / EPFO · verified 2026-09-25 · owner to confirm
- EPF employer contribution12 % of basic + DA (3.67 % EPF + 8.33 % EPS) · EPFO · verified 2026-09-25 · owner to confirm
- EPF statutory wage ceiling15,000 ₹ / month · EPFO · verified 2026-09-25 · owner to confirm
- ESI employee contribution0.75 % of gross · ESIC · verified 2026-09-25 · owner to confirm
- ESI employer contribution3.25 % of gross · ESIC · verified 2026-09-25 · owner to confirm
- ESI wage ceiling21,000 ₹ / month · ESIC · verified 2026-09-25 · owner to confirm
Frequently asked questions
Why is ESI zero for my salary?
ESI applies only when gross monthly wages are within the wage ceiling shown under the tool (₹21,000 on the verified date). Above it the contribution stops, though an employee who crosses the ceiling mid-contribution-period keeps contributing until that period ends.
Is employer PF always on the ₹15,000 ceiling?
The statutory obligation is on wages up to the ceiling; many employers contribute on actual basic. Tick the ceiling option to see the minimum-compliance structure and untick it for a contribution on full basic — the take-home changes accordingly.
Should gratuity be part of CTC?
Some employers include the 4.81 % provision in CTC, which lowers the gross; others treat gratuity as a separate liability. Either is lawful, but the offer letter must say which. Gratuity itself becomes payable only after five years of continuous service.
Where is income tax?
It is left out on purpose: tax depends on the regime chosen and the employee's own deductions. Take the gross from here to the income-tax regime calculator to estimate the tax and the true monthly credit.