Salary Breakup in India
Salary breakup explains how your total salary is structured and why your take-home salary is lower than your CTC. Understanding this helps you evaluate job offers and plan taxes better.
What is Salary Breakup?
Salary breakup is the detailed division of salary into fixed pay, variable pay, allowances, employer benefits, and statutory deductions.
Learn the base concept in What is CTC?
Common Salary Components
- Basic Salary: Core component; PF and gratuity are calculated on this.
- HRA: House Rent Allowance; partially tax-exempt under conditions.
- Special Allowance: Fully taxable flexible component.
- Bonus / Variable Pay: Performance-linked payment.
- Employer Benefits: Employer PF, insurance, and gratuity (included in CTC but not paid monthly).
Statutory Deductions in Salary
CTC vs Gross vs Take-Home Salary
CTC = Gross Salary + Employer PF + Benefits
Take-Home = Gross Salary − PF − Tax − Professional TaxSalary Breakup – FAQs
What is salary breakup in India?
Salary breakup is the detailed structure of a salary showing components such as basic salary, allowances, bonuses, employer benefits, and statutory deductions.
Is CTC the same as take-home salary?
No. CTC includes employer contributions and benefits, while take-home salary is the amount an employee actually receives after deductions.
Which salary components are taxable?
Basic salary and most allowances are fully taxable. Some components like HRA may be partially exempt subject to conditions.
What deductions reduce take-home salary?
Provident Fund (PF), Professional Tax, and Income Tax are the main deductions that reduce take-home salary.
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