Anyworks Salary Calculator
| Component | Monthly (₹) | Annual (₹) | Logic / Rules |
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Under New Wage Code guidelines, Basic Salary should be at least 50% of the total Gross Salary to ensure better social security contributions.
Variable pay is performance-linked and non-guaranteed, so it is generally excluded from statutory benefit calculations like PF and Gratuity.
CTC (Cost to Company) represents the total monthly or annual cost incurred by the employer for an employee. It includes fixed salary, variable pay, and employer statutory contributions. All components in this structure are calculated strictly within the given CTC.
No. Gross Salary refers to the fixed cash compensation paid to the employee, while CTC includes Gross Salary plus variable pay and employer-side statutory costs such as PF and Gratuity.
As per the EPF Act, Provident Fund contributions are capped at a statutory wage ceiling of ₹15,000 per month unless the employee voluntarily opts for higher contributions. Therefore, 12% of ₹15,000 equals ₹1,800.
The ₹15,000 PF Cap mode calculates PF only on the statutory wage ceiling and is the most commonly adopted compliant approach. Exact PF mode calculates PF on the full Basic Salary and is usually followed by select organizations with explicit policies.
Variable pay is performance-linked and non-guaranteed in nature. As per statutory interpretations, it is excluded from PF and Gratuity calculations because these benefits apply only to fixed wages.
No. Gross Salary represents fixed monthly earnings only. Variable Pay is shown separately as it is contingent on performance and may not be paid every month.
Gratuity is accrued monthly for compliance and cost provisioning purposes but is payable only after an employee completes five years of continuous service, as per the Payment of Gratuity Act, 1972.
Gratuity applies to organizations with ten or more employees and becomes payable to an employee after five years of continuous service. Many employers provision it in CTC to remain compliant.
PF registration becomes mandatory once an organization reaches 20 employees. Below this threshold, registration is optional unless voluntarily opted. Once registered, PF compliance must continue.
This calculator follows a CTC-bound approach, where employer statutory contributions are adjusted within the total CTC rather than added on top, ensuring no cost overruns.
No. Income Tax depends on individual declarations, tax regime selection, and applicable exemptions. It is calculated separately during payroll processing.
No. Professional Tax varies by state and is an employee-side deduction. It is excluded from this CTC structuring tool.
While not explicitly mandated, maintaining Basic Salary at around 50% of Gross is considered a best practice for statutory compliance, audit readiness, and future labour code alignment.
40% of Basic Salary is the standard HRA structure for non-metro locations and helps maintain consistency and tax efficiency. Metro HRA structures may differ as per policy.
Yes. This structure is suitable for offer letters, appointment letters, HR annexures, and client billing discussions, subject to company-specific HR policies.
No. This is an indicative planning tool. Final payroll and statutory applicability depend on company policy, employee eligibility, and prevailing labour laws.
CTC provides full cost transparency to both employer and employee. Take-home pay can vary due to taxes, deductions, and monthly variables.
Yes. The structure follows conservative wage definitions and higher Basic proportions, making it aligned with upcoming labour code principles.
This structure is suitable for startups, SMEs, IT and consulting firms, staffing companies, EOR providers, and enterprise hiring scenarios.
For final implementation or customization, organizations should consult their HR or payroll advisors or reach out to AnyWorks Studio for structured payroll support.