See how a typical Indian CTC splits into Basic, HRA, special allowance, employer PF, and gratuity provision.
Most employers set HRA at 40-50% of Basic — check your offer letter for the exact figure.
A typical structure, not your actual payslip — Basic, HRA, PF, and gratuity conventions vary by employer. Check your offer letter or payslip for exact figures.
Salary breakup (or salary structure) is how your total CTC is split into components — Basic pay, HRA, special allowance, and employer contributions like PF and gratuity that never reach your bank account directly. Offer letters list these separately, and the split affects both your take-home pay and your tax exemptions.
A higher Basic means higher EPF contributions (12% of Basic from both you and your employer) and a larger gratuity provision, both of which reduce your immediate take-home pay but build retirement savings. A lower Basic does the opposite — more in-hand now, less going into EPF and gratuity.
No — it's a structuring choice each employer makes, commonly 40-50% of Basic, but it can be lower. The 50%/40% figures you may have seen elsewhere are actually the HRA tax exemption limits (metro vs non-metro cities) under the old regime, not a rule for how employers must structure HRA in your CTC.
This shows a typical structure using common assumptions — your employer's actual policy on Basic %, HRA %, and other allowances (LTA, meal cards, etc.) may differ. Your offer letter or payslip is the authoritative source for your exact numbers.