CTC Breakup Calculator

Indian offer letters break a single annual CTC number into several components, and getting that breakup consistent across every offer you send matters — both for your own compliance and for candidates trying to understand what they'll actually take home. Enter an annual CTC, choose Basic as a percentage of CTC (40%, 50% or 60%) and toggle whether gratuity sits inside the CTC, and the calculator produces a full annual and monthly salary structure.

The structure follows a common convention used across Indian offer letters: Basic is set at your chosen percentage of CTC; HRA is calculated as 50% of Basic; Employer PF is 12% of Basic; Gratuity, if included, is estimated at 4.81% of Basic (the standard actuarial approximation for a fixed-term liability); and Special Allowance is whatever is left over — a balancing figure that makes all the components add back up exactly to your entered CTC. Gross salary is Basic + HRA + Special Allowance, i.e. what's actually disbursed before employee-side deductions like PF and tax.

This is one common structure, not the only one — components and PF treatment vary by company policy. Many organisations cap employer PF at ₹1,800 a month (12% of the ₹15,000 statutory wage ceiling) instead of 12% of full Basic, and gratuity remains payable under the Payment of Gratuity Act regardless of whether it's shown inside CTC. Treat the output as indicative for offer drafting, not tax or legal advice.

For recruiters, this is mainly about speed and consistency — drafting an offer breakup in seconds instead of a spreadsheet, and having a clear way to explain to a candidate why monthly gross is lower than CTC divided by twelve.