How to use the Salary Breakup Calculator (Basic, HRA, Allowances)
- Enter your annual CTC.
- Set basic salary as a percentage of CTC.
- Set HRA as a percentage of basic.
- See each component monthly and yearly.
Common salary components in India
- Basic salary: the fixed core of your pay. PF, gratuity and HRA are all linked to it.
- HRA: house rent allowance, partly tax-free in the old regime if you pay rent.
- Special allowance: the balancing figure that makes the components add up to your CTC. It is fully taxable.
- Employer PF: 12% of the PF wage, paid into your EPF account.
- Gratuity: 4.81% of basic, set aside for when you leave.
Effect of the new labour codes on salary structure
The labour codes that came into force on 21 November 2025 define "wages" as basic pay, dearness allowance and retaining allowance, and require wages to be at least 50% of total pay. If allowances exceed 50%, the excess counts as wages. Because PF and gratuity are calculated on wages, many employers have raised basic to 50% of CTC. That slightly lowers in-hand pay but increases your PF and gratuity savings.
Frequently asked questions
What percentage of CTC should basic salary be?
Most companies keep basic at 40-50% of CTC. Under the new labour codes, basic plus DA should be at least 50% of total pay.
Is special allowance taxable?
Yes. Special allowance is fully taxable in both tax regimes.
What is HRA in salary?
HRA is house rent allowance paid to help you with rent. In the old tax regime part of it can be tax-free if you live in a rented house.
These tools give estimates for general guidance and are not financial or tax advice. Rates and rules can change; check official sources before making decisions.