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What does that CTC actually pay?

Put in a CTC and see the whole structure — basic, HRA, provident fund, ESI, gratuity and what actually reaches the bank account. Built to the Code on Wages minimum basic of 50%.

50% basic rule applied Employee and employer view Nothing leaves your browser
the structure

CTC in, payslip out

Salary structure

Prepared with the Accountants Factory salary and CTC calculator ·

What you are offering

Change anything and every figure below moves with it.

Monthly take-home
Monthly gross
Annual cost to you

Move the basic and watch it change

A lower basic lifts take-home today and cuts the provident fund and gratuity going into the employee’s retirement. Below 50% it also stops being compliant.

Monthly earnings
ComponentAmount
Basic
House rent allowance
Special allowance
Gross salary
Deducted from the employee
ComponentAmount
Provident fund, employee share
ESI, employee share
Professional tax
Take-home, before income tax
What it costs the business
ComponentAmount, monthly
Gross salary
Provident fund, employer share
— of which pension (EPS)
PF admin and EDLI charges
ESI, employer share
Gratuity provision
Cost to company

Annual CTC . Income tax is not deducted here — put the annual gross into the Income Tax Calculator to compare regimes.

Everything is worked out in your browser. Nothing you type is stored, uploaded or sent to us. Treat the result as an indication rather than advice — a salary structure has to sit alongside the appointment terms, and state rules differ. Built by Accountants Factory, Tirupati, for businesses across Andhra Pradesh, Telangana and India.

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The rules behind the numbers

Every figure above comes from one of these. Rates and thresholds change, so check the current position before you commit to a structure.

Basic at 50% — Code on Wages, 2019. The Code defines “wages” so that the excluded allowances — HRA, conveyance, bonus, overtime, commission — cannot be more than half of total remuneration. Anything above that half is treated as wages anyway. The old trick of a small basic and a large special allowance no longer reduces provident fund or gratuity, and it is why 50% is the default here.
Provident fund, 12% each side. The employee contributes 12% of basic and the employer matches it. The statutory wage ceiling is ₹15,000 a month, so contributing on ₹15,000 rather than full basic is the minimum compliance position — both are allowed and the choice is yours. Contributing on full basic costs more and builds a larger corpus.
Pension, capped at ₹1,250. Of the employer’s 12%, 8.33% goes to the Employees’ Pension Scheme instead of the provident fund, and that share is always calculated on a maximum of ₹15,000 — so it stops at ₹1,250 a month. The rest of the employer’s contribution joins the PF balance.
Admin and EDLI, 1% of PF wages. On top of the 12%, the employer pays 0.50% as EPF administration charges and 0.50% towards the Employees’ Deposit Linked Insurance scheme. Small per employee, real across a payroll, and a monthly minimum applies to the administration charge at establishment level.
ESI below ₹21,000 gross. Employees State Insurance applies where gross pay is ₹21,000 a month or less — 0.75% from the employee and 3.25% from the employer. Above that it does not apply, though an employee who crosses the threshold mid-period stays covered until the contribution period ends.
Gratuity, 4.81% of basic. Fifteen days of pay for each completed year, on a twenty-six day month: 15 ÷ 26 ÷ 12 is 4.81%. Nothing is payable until five years of continuous service, but most employers provide for it monthly and show it inside CTC, which is why it is optional above.
Professional tax is a state levy. The ₹200 default follows Andhra Pradesh, where nothing is due up to ₹15,000 a month, ₹150 applies from ₹15,001 to ₹20,000 and ₹200 above that. Telangana is close to it. Several states do not levy it at all — set it to zero there.
Income tax is not in this. Take-home here is before TDS, because tax depends on the regime, other income and the declarations an employee makes — none of which a salary structure can see. Use the Income Tax Calculator for that.
the questions we get asked

Common questions

Why does basic have to be at least 50%?

Under the Code on Wages, 2019 the allowances excluded from “wages” — HRA, conveyance, bonus, overtime and the rest — cannot exceed half of total remuneration. If they do, the excess is treated as wages anyway. So a structure with a low basic and a large special allowance no longer reduces your PF and gratuity liability the way it used to. The calculator warns you the moment basic drops below 50%.

Is PF calculated on full basic or on ₹15,000?

Both are used, and it is the employer's choice. ₹15,000 a month is the statutory wage ceiling, so contributing 12% of ₹15,000 is the minimum compliance position. Many employers contribute on full basic instead, which costs more but gives the employee a larger retirement corpus. Switch the ceiling on or off and watch both the take-home and your cost change.

What is the ₹1,250 pension figure?

Of the employer's 12%, 8.33% goes to the Employees' Pension Scheme rather than the provident fund, and that part is always calculated on a maximum of ₹15,000 — so it caps at ₹1,250 a month. The balance of the employer's contribution goes into the PF account alongside the employee's own.

When does ESI apply?

When gross pay is ₹21,000 a month or less. The employee contributes 0.75% and the employer 3.25%. Cross that threshold and ESI stops for the rest of the contribution period, not immediately — the calculator shows the position at the salary you enter, not the mid-period rule.

Why is gratuity 4.81%?

Gratuity is fifteen days of pay for every completed year, and a month is counted as twenty-six working days: 15 ÷ 26 ÷ 12 works out to 4.81% of basic. Most employers carry it in CTC from day one even though nothing is payable until five years of service are completed.

Does this include income tax?

No. Take-home here is before TDS, because the tax depends on your regime, your other income and your declarations — things a salary structure cannot see. Put the annual gross into our Income Tax Calculator to compare the old and new regimes on your own numbers.

Is professional tax the same everywhere?

No, it is a state levy and the slabs differ. The defaults here follow Andhra Pradesh: nothing up to ₹15,000 a month, ₹150 from ₹15,001 to ₹20,000, and ₹200 above that. Telangana is close to it. Change the figure if you are in a state with different slabs, or set it to zero where there is no professional tax at all.

Can I use this for an offer letter?

Use it to agree the shape of the offer, then have the letter itself drawn up properly — the structure has to sit alongside the appointment terms, the notice period and the leave policy. That is work we do; send us the contact form.

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Structures, payslips, PF and ESI filings and the monthly journal into your accounts — on the same dates every month.