CTC Breakup Calculator — Every Component, Correctly Computed
A CTC breakup should show Basic + DA, HRA, other allowances, the statutory wage base after any Labour Codes add-back, PF, ESI (where applicable), professional tax, gratuity accrual and net take-home — enter your CTC below to see all of it computed together.
The four Labour Codes came into force on 21 November 2025. Central rules are still being finalised and state rules vary — some states have notified final rules, others remain in draft. Verify the position for your state before relying on these figures.
Not fixed at 50% — set any figure and see the compliance effect.
Excluded allowances are 59% of total remuneration — ₹9,025/month above the 50% cap.
That amount is added back into wages, taking statutory wages to ₹49,025/month. Gratuity accrual rises by ₹5,209/year. PF itself doesn't move here because wages already exceed the ₹15,000 ceiling on this PF option — only gratuity, which has no such ceiling, is affected.
Additional annual employer cost of compliance: ₹5,209 per employee.
CTC is unchanged. Take-home falls only if employee PF rises (it may not, if wages were already above the ceiling) — but gratuity accrual, the employee's retirement benefit, always rises when there's an add-back.
Salary structure
| Component | Monthly | Annual | % CTC |
|---|---|---|---|
| Basic + DA | ₹40,000 | ₹4,80,000 | 40.0% |
| HRA | ₹20,000 | ₹2,40,000 | 20.0% |
| Other allowances | ₹38,050 | ₹4,56,600 | 38.0% |
| Statutory wages (post add-back) | ₹49,025 | ₹5,88,300 | 49.0% |
| Gross salary | ₹98,050 | ₹11,76,600 | 98.0% |
| PF — employee (12%) | ₹1,800 | ₹21,600 | 1.8% |
| PF — employer (12%) | ₹1,800 | ₹21,600 | 1.8% |
| Professional Tax | ₹200 | ₹2,400 | 0.2% |
| Gratuity accrual (4.81%) | ₹2,358 | ₹28,297 | 2.4% |
| Net take-home | ₹96,050 | ₹11,52,600 | 96.0% |
Estimated TDS (new regime): ₹0/month · (old regime): ₹13,042/month — full comparison →
The Codes require full and final settlement within a very short window after an employee's last working day — commonly cited as two working days, though some sources say 48 hours. Confirm the exact statutory wording with a CA/CS before committing to a date in writing.
What a complete CTC breakup actually needs to show
A CTC figure by itself tells an employee almost nothing about their actual take-home pay. A complete breakup needs: Basic + DA, HRA (by city type), any optional components (LTA, medical, food coupons), the statutory wage base used for PF/gratuity/ESI (which may differ from basic + DA if there's a Labour Codes add-back), employee and employer PF, ESI where gross is within the threshold, state-specific professional tax, gratuity accrual, and finally net take-home after all deductions.
Two CTC figures that look identical on paper can produce different take-home amounts depending on how the components are split — a higher basic increases PF deduction (reducing net pay) while simultaneously increasing the employee's retirement savings; a higher HRA or special allowance does neither, but might not survive the 50% excluded-allowances cap intact.
Why the breakup must show the statutory wage base separately from basic pay
If a breakup only shows 'Basic' and stops there, it hides exactly the number that changed under the Labour Codes — the add-back that happens when excluded allowances exceed 50% of remuneration. Showing 'Statutory wages (post add-back)' as its own line, distinct from Basic + DA, is what makes the breakup honest about what PF and gratuity are actually computed on.
Frequently asked questions
Related pages
Why this matters
Getting the wage base wrong for one client is a correction; getting it wrong across a payroll book is a liability — PracticeFlow keeps every client's compliance status visible in one place.
Related tools
Restructuring payroll for the Labour Codes across 60 clients? PracticeFlow tracks every client's compliance status, assigns the review work, and keeps a firm-wide audit trail — so nothing gets missed.
See PracticeFlow for CA FirmsEstimate for planning purposes, not legal or tax advice — always confirm with a CA before restructuring a client's payroll.