Salary breakup is how a single CTC number splits into the actual components that show up on your payslip. Two offers with the same headline CTC can have meaningfully different salary breakups, and that difference changes both your take-home pay and your tax position.

What a typical breakup looks like

A standard Indian salary breakup includes basic salary (commonly 40-50% of CTC), HRA (often around 50% of basic in metro cities, 40% elsewhere), other allowances like LTA, conveyance and special allowance, the employer’s statutory contributions to PF and gratuity provision, and finally the deductions, your own PF contribution, TDS and professional tax, that bring gross down to net take-home.

Under the Code on Wages, basic plus DA now has to make up at least 50% of total pay, which has pushed many employers to raise the basic component in newer salary structures. See our note on the 50% wage rule for what changed.

Frequently asked questions

Why does the breakup matter if the CTC is the same?

A higher basic means more PF and a larger eventual gratuity, but slightly lower take-home now. A higher HRA share can mean a bigger tax exemption if you’re renting. The breakup, not just the CTC total, determines what you actually keep and build toward.

Can I negotiate my own salary breakup?

Sometimes, within limits. Employees occasionally ask to shift the split between HRA and special allowance to improve their tax position, especially where they pay significant rent, though the total CTC usually stays fixed.

See a full breakdown for any CTC figure with the Salary Breakup Calculator, and the resulting take-home with the CTC to In-Hand Salary Calculator.