CTC calculator
Break an annual CTC into basic, HRA, special allowance and employer costs.
Monthly gross salary
₹46,638
| Component | Monthly | Annual |
|---|---|---|
| Basic | ₹20,000 | ₹2,40,000 |
| HRA | ₹10,000 | ₹1,20,000 |
| Special allowance | ₹16,638 | ₹1,99,656 |
| Gross salary | ₹46,638 | ₹5,59,656 |
| Employer PF (12%) | ₹2,400 | ₹28,800 |
| Gratuity provision (4.81%) | ₹962 | ₹11,544 |
| CTC | ₹50,000 | ₹6,00,000 |
A common structure, not the only one. Employer ESI applies while monthly gross is ₹21,000 or less. Indicative only.
How it works
Cost to Company (CTC) includes the employer's own costs, so the salary an employee earns (gross) is lower than CTC. This calculator builds a common Indian structure: basic as a share of CTC, HRA as a share of basic, employer PF and a gratuity provision inside CTC, and a special allowance that balances the rest.
Where monthly gross is ₹21,000 or less, the employer's 3.25% ESI contribution is also carved out of CTC.
Formula
- Basic = 40% or 50% of CTC
- HRA = 50% of basic (metro) or 40% (non-metro)
- Employer PF = 12% of basic, or of ₹25,000 if capped
- Gratuity provision = 4.81% of basic
- Gross = CTC − employer PF − gratuity (− employer ESI if gross ≤ ₹21,000 a month)
- Special allowance = gross − basic − HRA
Worked example
Annual CTC ₹6,00,000, basic 40%, metro, PF capped
- Monthly CTC ₹50,000; basic ₹20,000; HRA ₹10,000
- Employer PF ₹2,400 (12% of basic, below the ₹25,000 ceiling); gratuity provision ₹962
- Gross ₹46,638; special allowance ₹16,638
Common mistakes to avoid
- Setting basic so low that allowances exceed half of pay, which the Labour Codes' wage definition adds back for PF and gratuity.
- Forgetting employer ESI inside CTC for lower-paid employees.
- Quoting CTC without explaining that take-home is lower.
- Building structures that differ between offer letters and payroll.
CTC calculator: FAQs
Is gratuity part of CTC?
Many employers include a gratuity provision (commonly 4.81% of basic) in CTC; others do not. It is a policy choice that should be stated in the offer.
What is the difference between CTC and gross salary?
Gross is what the employee earns before deductions. CTC adds the employer's costs such as employer PF, gratuity provision and employer ESI.
How do I get take-home from CTC?
Deduct employee PF, professional tax and TDS from gross. The take-home salary calculator does this for you.
Related reading
NeevHR runs these calculations for your whole payroll
PF, ESI, PT, TDS, gratuity and bonus computed from one employee record every cycle.
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