{"id":6347,"date":"2024-07-30T13:27:27","date_gmt":"2024-07-30T07:57:27","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=6347"},"modified":"2024-09-06T15:05:06","modified_gmt":"2024-09-06T09:35:06","slug":"salary-breakup-structure-format","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/","title":{"rendered":"Salary Breakup &#8211; Salary Structure, Format, Calculation &#038; More"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f0dce34cd3c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f0dce34cd3c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#What-is-Salary-Breakup\" >What is Salary Breakup?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Components-of-Salary-Breakup-Structure\" >Components of Salary Breakup Structure<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Basic-Salary\" >Basic Salary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Allowances\" >Allowances<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Statutory-Bonus-or-Performance-Bonus\" >Statutory Bonus or Performance Bonus<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Employee-Provident-Fund-EPF-or-PF\" >Employee Provident Fund (EPF or PF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Gratuity\" >Gratuity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Insurance\" >Insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Taxes-and-Liabilities\" >Taxes and Liabilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Gross-Salary\" >Gross Salary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#In-hand-or-Take-Home-Salary\" >In-hand or Take-Home Salary<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#How-is-Salary-Structure-Determined\" >How is Salary Structure Determined?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Salary-Breakup-Calculation\" >Salary Breakup Calculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Salary-Breakup-Calculation-Example\" >Salary Breakup Calculation Example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#Automated-Payroll-Compliance\" >Automated Payroll Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/razorpay.com\/payroll\/learn\/salary-breakup-structure-format\/#FAQs\" >FAQs\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-Salary-Breakup\"><\/span>What is Salary Breakup?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A salary breakup structure or a <a href=\"https:\/\/razorpay.com\/payroll\/learn\/cost-to-company-ctc-vs-take-home-salary\/\">CTC<\/a> (cost-to-company) breakup structure is the structure in which the CTC is divided into various components to arrive at the in-hand salary of an employee.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CTC, or cost-to-company, is the total salary package that the company offers an employee during recruitment. Having said that, it is essential to note that CTC is never equal to the take-home pay received at the end of the month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>CTC is the total amount spent by the company on an employee<\/strong>, whether directly or indirectly. It includes various components like basic pay, provident fund, allowances, etc. Some companies calculate it by adding the employer\u2019s contribution towards PF (Provident Fund) and Gratuity to the gross salary.\u00a0<\/span><\/p>\n<p><b>Fun Fact:<\/b><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/payroll\/?r=blog_cta_salarybreakup\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"> RazorpayX Payroll<\/a> platform provides this as a configuration option to users, so you can choose how to define the CTC structure for your employees.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Components-of-Salary-Breakup-Structure\"><\/span><strong>Components of Salary Breakup Structure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Basic-Salary\"><\/span><strong>Basic Salary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is the fixed component of the salary, excluding any benefits and privileges. It can vary depending on the job location, industry and designation. It accounts for around 40-60% of the CTC and is fully taxable. Therefore, if the basic salary is too high, it will result in increased tax and PF liabilities, and if it is kept too low, it could violate the minimum wage norms.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Allowances\"><\/span><strong>Allowances<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This refers to the expenditure incurred by the employer to enable you to render the services required. These allowances depend on the location, designation and your job role and are provided over and above the basic salary. The amount of allowance depends on the individual policies of the company. Given below are the most common forms of allowances.\u00a0<\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/razorpay.com\/payroll\/learn\/hra-calculation\"><span style=\"font-weight: 400;\">House Rent Allowance<\/span><\/a><\/li>\n<li><span style=\"font-weight: 400;\">Leave Travel Allowance<\/span><\/li>\n<li><a href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\"><span style=\"font-weight: 400;\">Conveyance Allowances<\/span><\/a><\/li>\n<li><span style=\"font-weight: 400;\">Special Allowances<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Statutory-Bonus-or-Performance-Bonus\"><\/span><strong>Statutory Bonus or Performance Bonus<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The company provides a statutory bonus as a reward for an employee\u2019s excellent performance. It is given in addition to the basic salary and is paid to motivate the employees under the Payment of Bonus Act 1965. The bonus amount is expressed as a percentage of the basic pay, depending on the company\u2019s policies.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Employee-Provident-Fund-EPF-or-PF\"><\/span><strong><a href=\"https:\/\/razorpay.com\/payroll\/learn\/employee-provident-fund-epf-scheme\/\">Employee Provident Fund (EPF or PF)<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A provident fund is a retirement benefit that the employer provides to the employees. A certain percentage of the basic pay is dedicated every month from the CTC of the employee, and the same amount is contributed by the employer every month towards this fund.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An employee can withdraw this amount after being unemployed for 1 month. This is a part of the retirement benefit plan of the company and is generally calculated at 12% of the basic salary.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Gratuity\"><\/span><strong><a href=\"https:\/\/razorpay.com\/payroll\/learn\/what-is-gratuity\/\">Gratuity<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is the lump sum amount paid to the organisation&#8217;s employees after they complete 5 years of service. As the name suggests, it is the amount paid as a gratitude towards the employee for their dedication and hard work over the years of their service. The gratuity amount is calculated at 4.81% of the basic pay, per the Payment of Gratuity Act, 1972.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Insurance\"><\/span><span style=\"font-weight: 400;\"><strong>Insurance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Many companies provide group or individual life health insurance policies to promote the health and well-being of their employees. A small amount is deducted from the CTC of the employee every month and used towards the payment of the premium.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Taxes-and-Liabilities\"><\/span><strong>Taxes and Liabilities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">After all the allowances, PF, gratuity, and bonus are deducted from the salary, the remaining amount is then adjusted towards the <\/span><a href=\"https:\/\/razorpay.com\/payroll\/learn\/how-to-calculate-income-tax-on-salary\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">income tax<\/span><\/a><span style=\"font-weight: 400;\"> and the professional tax. The tax due on the salary is calculated based on the slab rates applicable. Employees can choose between the new tax regime and the old one.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h4>New Tax Regime<\/h4>\n<table dir=\"ltr\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\" data-sheets-root=\"1\" data-sheets-baot=\"1\">\n<colgroup>\n<col width=\"100\" \/>\n<col width=\"100\" \/><\/colgroup>\n<tbody>\n<tr>\n<td>Income Slab (Rs.)<\/td>\n<td>Tax Rate (%)<\/td>\n<\/tr>\n<tr>\n<td>Up to 2,50,000<\/td>\n<td>Nil<\/td>\n<\/tr>\n<tr>\n<td>2,50,001 &#8211; 5,00,000<\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td>5,00,001 &#8211; 7,50,000<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>7,50,001 &#8211; 10,00,000<\/td>\n<td>15%<\/td>\n<\/tr>\n<tr>\n<td>10,00,001 &#8211; 12,50,000<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>12,50,001 &#8211; 15,00,000<\/td>\n<td>25%<\/td>\n<\/tr>\n<tr>\n<td>Above 15,00,000<\/td>\n<td>\n<div>\n<div>30% + Surcharge + Cess<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h4>Old Tax Regime<\/h4>\n<table dir=\"ltr\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\" data-sheets-root=\"1\" data-sheets-baot=\"1\">\n<colgroup>\n<col width=\"100\" \/>\n<col width=\"100\" \/><\/colgroup>\n<tbody>\n<tr>\n<td>Income Slab (Rs.)<\/td>\n<td>Tax Rate (%)<\/td>\n<\/tr>\n<tr>\n<td>Up to 2,50,000<\/td>\n<td>Nil<\/td>\n<\/tr>\n<tr>\n<td>2,50,001 &#8211; 5,00,000<\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td>5,00,001 &#8211; 10,00,000<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>10,00,001 and above<\/td>\n<td>30%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The amount of tax calculated is directly deducted from your salary before crediting it to your account. This amount deducted by the employer is known as TDS (Tax Deducted at Source).<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Gross-Salary\"><\/span><strong>Gross Salary <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is the total salary before accounting for various deductions. Gross salary can be arrived at by adding the basic salary, HRA, bonus, and allowances.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"In-hand-or-Take-Home-Salary\"><\/span><strong>In-hand or Take-Home Salary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The amount left after all the above adjustments are made is known as the in-hand or take-home salary. It is the salary that employees receive at the end of every month. In other words, it is the amount that is credited into employees\u2019 bank accounts every month.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here is the formula to calculate in-hand salary &#8211;<\/span><\/p>\n<p><b>Net Salary = Basic Salary + Allowances &#8211; (Provident fund + Gratuity + TDS + Professional Tax)<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-is-Salary-Structure-Determined\"><\/span><strong>How is Salary Structure Determined?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The salary structure of every employee is distinct and is decided based on several factors, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The level of education and the years of experience<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The industry they belong to and the significance of the work being done\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Location of the job and the cost of living in the city<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The skill sets that the employee possesses and the demand for those skills<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The demand and supply of talent in the given area<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Salary-Breakup-Calculation\"><\/span><strong>Salary Breakup Calculation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are usually 3 components of salary: Basic Salary, Allowances and Deductions. Net Salary is calculated as follows:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Particulars<\/b><\/td>\n<td><\/td>\n<td><b>Amount<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Basic Salary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">(A)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">XXXXX<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Add:<\/b><span style=\"font-weight: 400;\"> Allowances<\/span><\/td>\n<td><span style=\"font-weight: 400;\">(B)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">XXXXX<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Gross Salary<\/b><\/td>\n<td><b>(C = A+B)<\/b><\/td>\n<td><b>XXXXX<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Less:<\/b><span style=\"font-weight: 400;\"> Deductions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">(D)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">XXXX<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Net Salary (In-hand Salary)<\/b><\/td>\n<td><b>(E = C-D)<\/b><\/td>\n<td><b>XXXXX<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">CTC is calculated by adding the employer&#8217;s contribution for PF and Gratuity to the Gross Salary.<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup?r=blog_cta_salarybreakup\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Automate salary calculation<\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Salary-Breakup-Calculation-Example\"><\/span><strong>Salary Breakup Calculation Example<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s consider an annual CTC of <\/span><b>Rs. 3,60,000<\/b><span style=\"font-weight: 400;\">. For this the salary breakup structure will look like this:<\/span><\/p>\n<table style=\"height: 773px;\" width=\"870\">\n<tbody>\n<tr>\n<td><b>Salary Components<\/b><\/td>\n<td><b>Calculation<\/b><\/td>\n<td><b>Amount<\/b><\/td>\n<td><b>Deductions<\/b><\/td>\n<td><b>Amount<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">BASIC<\/span><\/td>\n<td><span style=\"font-weight: 400;\">50% OF CTC<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">PF EMPLOYEE CONTRIBUTION<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1800<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">HRA<\/span><\/td>\n<td><span style=\"font-weight: 400;\">50% OF HRA<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7500<\/span><\/td>\n<td><span style=\"font-weight: 400;\">PF EMPLOYER CONTRIBUTION<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1800<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">LEAVE TRAVEL ALLOWANCE<\/span><\/td>\n<td><span style=\"font-weight: 400;\">FIXED AMOUNT<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3000<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">SPECIAL ALLOWANCE<\/span><\/td>\n<td><span style=\"font-weight: 400;\">BALANCE FIGURE<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2700<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">PF EMPLOYER CONTRIBUTION<\/span><\/td>\n<td><span style=\"font-weight: 400;\">[GROSS-HRA] * 12 % <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">LIMIT TO 1800<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1800<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GROSS SALARY<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Basic + allowances<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">TOTAL DEDUCTIONS<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3600<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><b>Hence, net pay or in-hand salary = 30,000 &#8211; 3600 = Rs. 26,400<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Automated-Payroll-Compliance\"><\/span><strong>Automated Payroll Compliance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">RazorpayX Payroll is an all-in-one payroll software that automatically bifurcates CTC into basic, HRA, special allowance etc. <\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignnone size-full wp-image-6349\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2022\/06\/New-file.gif\" alt=\"salary breakup structure\" width=\"1224\" height=\"668\" \/><\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup?r=blog_cta_salarybreakup\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Try it for free!<\/a><\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">All you have to do is set a date, and your employees get paid on time. Yes, we calculate and disburse salaries into employee bank accounts in just 3 clicks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">RazorpayX Payroll also takes care of compliances such as TDS, PF, PT &amp; ESIC. <\/span><a href=\"https:\/\/payroll.razorpay.com\/signup?r=blog_cta_salarybreakup\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">Sign up<\/span><\/a><span style=\"font-weight: 400;\"> once and automate everything from salary calculation &amp; disbursement to managing compliances.<\/span><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/zo-world-reduces-its-payroll-time-with-razorpayx-payroll\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">[Read how Zo World Reduced Its Payroll &amp; Reimbursement Timelines by 75% with RazorpayX Payroll]<\/a><\/strong><\/p>\n<p><strong>Read more:<\/strong><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/\"><span style=\"font-weight: 400;\">Payroll Software<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/what-is-payroll\/\"><span style=\"font-weight: 400;\">What is Payroll<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/learn\/payroll-process\/\"><span style=\"font-weight: 400;\">Payroll Process<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/learn\/payroll-management-system-software\/\"><span style=\"font-weight: 400;\">Payroll Management<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/learn\/hris-human-resource-information-system\/\"><span style=\"font-weight: 400;\">HRIS<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/leave-attendance-management\/\"><span style=\"font-weight: 400;\">Leave Attendance Management<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/attendance-management-system\/\"><span style=\"font-weight: 400;\">Attendance Management System<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/hr-software\/\"><span style=\"font-weight: 400;\">HR Software<\/span><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><span style=\"font-weight: 400;\">FAQs\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<p>A salary breakup structure is a structure in which the CTC is divided into various components to arrive at the in-hand salary of an employee. Click here to know more!<\/p>\n","protected":false},"author":151156494,"featured_media":10920,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3404],"tags":[3405,3741],"class_list":{"0":"post-6347","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll","8":"tag-payroll","9":"tag-salary-breakup"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156494"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=6347"}],"version-history":[{"count":17,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6347\/revisions"}],"predecessor-version":[{"id":13213,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6347\/revisions\/13213"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/10920"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=6347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=6347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=6347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}