Corporate Salary Calculator (India)

Fixed Components (Direct Cash Payments)

Fixed salary components are regular payments made by the employer and form the base for calculating other benefits and deductions.

Basic Salary:

• Most crucial salary element (usually 40–50% of CTC)
• Used to calculate HRA, PF, and Gratuity
• Fully taxable

House Rent Allowance (HRA):

• Offered for employees who pay rent
• Tax-exempt partially under Section 10(13A)
• Exemption calculated based on rent paid, basic salary, and location

Dearness Allowance (DA):

• Offered mostly in public sector
• Fully taxable

Conveyance/Transport Allowance:

• Fully taxable since Budget 2018

Special Allowance:

• Fills the gap between total pay and basic + HRA
• Fully taxable

Medical Allowance:

• Now fully taxable post Budget 2018

Variable Components (Performance Linked)

• These depend on individual, team, or company performance.
• Performance Bonus / Variable Pay:
• Periodic, typically annual
• Fully taxable

Statutory Contributions (Legal Deductions) : Mandatory contributions as per Indian labor laws.

Employee Provident Fund (EPF):

• 12% of Basic + DA by both employer and employee
• Employee contribution tax-deductible under 80C

Professional Tax:

• State-level tax, max ₹2,500/year

Employee State Insurance (ESI):

• For employees with gross < ₹21,000/month
• Employee pays 0.75%, Employer pays 3.25%

Gratuity:

• Paid after 5+ years of service
• Tax-free up to ₹20 lakhs
• Other Benefits (Non-Cash or Conditional)
• Often included in CTC but not paid monthly.

Leave Travel Allowance (LTA):

• Tax-free twice in 4 years for domestic travel

Food Coupons/Meal Vouchers:

• Tax-exempt up to ₹2,200/month
• Telephone/Internet Reimbursement:
• Tax-free against bills

Company Car:

• Perquisite value calculated as taxable
• Standard Deduction
• ₹50,000 flat deduction for all salaried individuals