Tools
Salary breakup calculator: CTC to basic, HRA, PF and in-hand
Enter the monthly CTC, the share that is basic and the state the employee works in. The calculator splits the salary into its usual parts and estimates the in-hand amount before tax.
In short
This free salary breakup calculator from SimpleERP splits a monthly CTC into basic, HRA, PF and special allowance, estimates in-hand pay and flags whether professional tax applies. It is an estimate on common Indian conventions; SimpleERP computes payroll from the components you set.
How to use it
The result is an estimate for planning an offer or a structure, not a payslip.
Enter the monthly CTC
Cost to company per month, including the employer's PF. Divide an annual CTC by 12.
Set basic as a percent of CTC
40% to 50% is common, but the Code on Wages expects basic plus DA to be at least half of total pay, so the calculator flags anything under 50%. Basic drives PF, HRA and gratuity.
Pick the state of work
The calculator says whether professional tax applies there; it does not compute the amount.
Choose the PF wage ceiling
On by default, so PF is 12% of basic up to ₹15,000. Turn it off if you pay PF on the full basic.
Why is PF 12 percent of basic and not CTC?
The EPF Act charges contributions on wages, meaning basic plus dearness allowance, not on the whole CTC. Both employee and employer pay 12% of that wage, and employers may cap it at the ₹15,000 wage ceiling, as notified; check the current rules.
- Employee PF is deducted from the salary: 12% of basic, so ₹1,800 at the ceiling.
- Employer PF is part of CTC but not of gross salary, so it never reaches the employee's bank account.
- A very low basic to cut PF can be questioned, since allowances that are really wages may be counted as wages.
- The employer's 12% is split between the pension scheme and the provident fund; the calculator shows it as one figure.
Illustration of a payslip with Basic, HRA, provident fund and professional tax lines and net pay of ₹27,660.
Does every state charge professional tax?
No. Professional tax is a state levy, and more than half of the states and union territories charge it, each with its own slabs. The table below shows where it applies, as notified; check the current rules with the state before you rely on it.
- Tamil Nadu, Karnataka, Maharashtra and West Bengal levy PT; Delhi, Haryana and Uttar Pradesh do not.
- The employer deducts it from salary and pays it to the state or the local body.
- Slabs and amounts vary, so the calculator only flags whether PT applies.
Do this automatically in SimpleERP
In SimpleERP each employee has a salary structure, and the monthly payroll run reads paid days from attendance, then works out PF, PT and TDS lines and posts the payroll to the books.
- Salary structures with basic, HRA and allowances as components.
- Loss of pay from attendance, before the deductions are worked out.
- Payslips for every employee in the run.
- Payroll posts to the ledger when you approve and pay.
Illustration of a payslip with Basic, HRA, provident fund and professional tax lines and net pay of ₹27,660.
The maths
How it is calculated
The calculator builds the salary from basic outward, and gives whatever is left of CTC to the special allowance.
- Basic = CTC × basic percent ÷ 100.
- HRA = 40% of basic (50% is common in metro cities; adjust the structure if you use it).
- PF wage = basic, capped at ₹15,000 when the ceiling is on.
- Employee PF = employer PF = 12% of the PF wage.
- Special allowance = CTC − basic − HRA − employer PF.
- Gross = basic + HRA + special allowance.
- In-hand estimate = gross − employee PF, before professional tax and TDS.
Example
Worked example
Lakshmi Steel Furnitures in Coimbatore offers a production supervisor ₹50,000 a month CTC with basic at 50%.
| Component | Amount |
|---|---|
| Basic (50% of CTC) | ₹25,000.00 |
| HRA (40% of basic) | ₹10,000.00 |
| Employer PF (12% of ₹15,000) | ₹1,800.00 |
| Special allowance (the rest) | ₹13,200.00 |
| Gross salary | ₹48,200.00 |
| Employee PF (12% of ₹15,000) | ₹1,800.00 |
| In-hand estimate, before PT and TDS | ₹46,400.00 |
| Professional tax | Applies in Tamil Nadu |
Reference
Professional tax by state
| State | GST code | Professional tax | Source |
|---|---|---|---|
| Jammu and Kashmir | 01 | Not levied | jkcomtax.gov.in |
| Himachal Pradesh | 02 | Not levied | hptax.gov.in |
| Punjab | 03 | Applies | taxation.punjab.gov.in |
| Chandigarh | 04 | Not levied | chandigarh.gov.in |
| Uttarakhand | 05 | Not levied | gst.uk.gov.in |
| Haryana | 06 | Not levied | haryanatax.gov.in |
| Delhi | 07 | Not levied | delhi.gov.in |
| Rajasthan | 08 | Not levied | rajasthan.gov.in |
| Uttar Pradesh | 09 | Not levied | comtax.up.nic.in |
| Bihar | 10 | Applies | biharcommercialtax.gov.in |
| Sikkim | 11 | Applies | sikkim.gov.in |
| Arunachal Pradesh | 12 | Not levied | arunachalpradesh.gov.in |
| Nagaland | 13 | Applies | nagaland.gov.in |
| Manipur | 14 | Applies | manipur.gov.in |
| Mizoram | 15 | Applies | zotax.nic.in |
| Tripura | 16 | Applies | taxes.tripura.gov.in |
| Meghalaya | 17 | Applies | megtaxes.gov.in |
| Assam | 18 | Applies | tax.assam.gov.in |
| West Bengal | 19 | Applies | wbprofessiontax.gov.in |
| Jharkhand | 20 | Applies | jharkhandcomtax.gov.in |
| Odisha | 21 | Applies | odishatax.gov.in |
| Chhattisgarh | 22 | Applies | comtax.cg.nic.in |
| Madhya Pradesh | 23 | Applies | mptax.mp.gov.in |
| Gujarat | 24 | Applies | commercialtax.gujarat.gov.in |
| Dadra and Nagar Haveli and Daman and Diu | 26 | Not levied | ddvat.gov.in |
| Maharashtra | 27 | Applies | mahagst.gov.in |
| Karnataka | 29 | Applies | pt.kar.nic.in |
| Goa | 30 | Check with the state | Not listed |
| Lakshadweep | 31 | Not levied | lakshadweep.gov.in |
| Kerala | 32 | Applies | keralataxes.gov.in |
| Tamil Nadu | 33 | Applies | chennaicorporation.gov.in |
| Puducherry | 34 | Applies | py.gov.in |
| Andaman and Nicobar Islands | 35 | Not levied | andaman.nic.in |
| Telangana | 36 | Applies | tgct.gov.in |
| Andhra Pradesh | 37 | Applies | apct.gov.in |
| Ladakh | 38 | Not levied | ladakh.gov.in |
Source: State tax departments and state government sites, one per row. Verified on .
Honest limits
What this calculator does not do
- It is an estimate: it does not compute TDS on salary or the professional tax amount, only whether PT applies.
- ESI, gratuity, bonus and variable pay are not included in the breakup.
- It does not choose between the old and new income tax regimes.
FAQ
Questions, answered
What percentage of CTC should basic salary be?
Commonly 40% to 50%. A higher basic raises PF and gratuity and lowers in-hand pay; a lower basic does the reverse. Under the new labour codes, wages are expected to be at least half of pay, so check the current rules before you set it.
How do I calculate in-hand salary from CTC?
Take employer PF out of CTC to get gross, then subtract employee PF, professional tax and TDS. For ₹50,000 CTC with ₹25,000 basic and the PF ceiling on, gross is ₹48,200 and in-hand before PT and TDS is ₹46,400.
Is PF deducted on the full basic salary?
Not necessarily. PF is 12% of basic, and the employer may cap the wage at ₹15,000, so the most a capped deduction reaches is ₹1,800 a month. Many employers pay on the full basic instead.
Which states do not have professional tax?
Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand, Himachal Pradesh, Arunachal Pradesh, Jammu and Kashmir, Ladakh and most union territories do not levy it, as notified; check the current rules. Goa is marked check with the state. The table on this page lists all 36 states and union territories.
Related
Keep reading
Payroll
Salary structures, monthly runs and payslips with PF, PT and TDS, posted to the books.
Read moreProfessional tax (PT)
A state tax on employment, deducted from salary by the employer, with slabs and schedules that differ by state.
Read moreSalary slip format
A salary slip format with earnings, PF, PT and TDS deductions and net pay, as a free Excel, Word and PDF download.
Read more
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