About the Basic Salary Calculator
What is the Basic Salary Calculator?
Basic salary is the core of your pay. HRA, PF, gratuity and often bonus are all calculated on it, so its share of CTC shapes your take-home pay and retirement savings.
Enter your CTC and basic percentage to see monthly basic pay and the components that depend on it.
How to use the Basic Salary Calculator
- Annual CTC (₹) (sample: 12,00,000)
- Basic Pay (% of fixed CTC) (sample: 40)
- City (sample: Metro (HRA up to 50% of basic))
- Press Calculate Basic Salary (results also refresh as you type). The result card shows the Monthly Basic Salary, along with Annual basic, Typical HRA, Employer PF at 12% (monthly) and Gratuity earned per year of service.
Formula used
Basic salary = CTC × Basic %
- Employer PF = 12% of basic
- Gratuity per year = monthly basic × 15 ÷ 26
Under the Code on Wages, allowances beyond 50% of total pay are added back to wages for PF and gratuity.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Annual CTC (₹) | 12,00,000 |
| Basic Pay (% of fixed CTC) | 40 |
| City | Metro (HRA up to 50% of basic) |
| Result | Value |
|---|---|
| Monthly Basic Salary | ₹40,000 |
| Annual basic | ₹4,80,000 |
| Typical HRA | ₹20,000 |
| Employer PF at 12% (monthly) | ₹4,800 |
| Gratuity earned per year of service | ₹23,077 |
| Code on Wages check | Below 50% – allowances above half of pay are added back to "wages" for PF and gratuity |
Tips for using the Basic Salary Calculator
- A higher basic means more PF and gratuity but slightly lower monthly in-hand.
- Basic is fully taxable; allowances like HRA can be partly exempt in the old regime.