Salary Structure for ₹15 Lakh CTC — A Worked Example
For a ₹15,00,000 annual CTC, the exact PF, ESI, professional tax, gratuity accrual and take-home depend on the Basic percentage and city chosen — the tool below is pre-filled at this CTC so you can see every component computed live.
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 — ₹11,525/month above the 50% cap.
That amount is added back into wages, taking statutory wages to ₹61,525/month. Gratuity accrual rises by ₹6,652/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: ₹6,652 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 | ₹50,000 | ₹6,00,000 | 40.0% |
| HRA | ₹25,000 | ₹3,00,000 | 20.0% |
| Other allowances | ₹48,050 | ₹5,76,600 | 38.4% |
| Statutory wages (post add-back) | ₹61,525 | ₹7,38,300 | 49.2% |
| Gross salary | ₹1,23,050 | ₹14,76,600 | 98.4% |
| PF — employee (12%) | ₹1,800 | ₹21,600 | 1.4% |
| PF — employer (12%) | ₹1,800 | ₹21,600 | 1.4% |
| Professional Tax | ₹200 | ₹2,400 | 0.2% |
| Gratuity accrual (4.81%) | ₹2,959 | ₹35,512 | 2.4% |
| Net take-home | ₹1,13,229 | ₹13,58,750 | 90.6% |
Estimated TDS (new regime): ₹7,821/month · (old regime): ₹20,842/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.
Why a ₹15 lakh CTC is a useful reference point
₹15,00,000 annual CTC sits at an interesting point relative to the ₹15,000/month PF wage ceiling: at roughly 40% basic, monthly basic pay (~₹50,000) is already well above the ceiling, so the PF-option choice (ceiling vs full wages) has a real, visible effect on both employer cost and employee take-home. It's also comfortably above the ₹21,000/month gross threshold for ESI, so ESI doesn't apply at this CTC level for a standard structure — a detail worth confirming for any structure that pushes an unusually large share into excluded allowances at a lower effective gross.
What changes the numbers at this CTC level
City type changes HRA (50% of basic in a metro vs 40% in a non-metro), which changes the mix between HRA and 'other allowances' but not the CTC total. State changes only the professional tax line — a few hundred rupees a month at most, but non-zero in states like Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Madhya Pradesh and Tamil Nadu. The PF option (statutory ceiling vs full wages) is usually the largest single lever on take-home at this CTC, since basic pay is already well above the ceiling.
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.