Statutory Compliance &
Salary breakup Calculators

Many employees are surprised to find that their actual bank deposits are significantly lower than the Cost to Company (CTC) offered in their contract. Understanding the salary breakdown components is key to tax planning and financial health.

1. Employees' Provident Fund (EPF): The standard employee contribution is 12% of the applicable PF wage, subject to membership and contribution-basis rules. Employer PF is a separate employer cost that may be included in CTC.

2. ESI and Professional Tax: Covered employees generally contribute 0.75% of ESI wages, subject to the daily-wage exemption. Coverage can continue after a wage increase. Professional tax bands, exemptions and payment periods differ by state and local authority.

3. HRA and income tax: Eligible HRA exemption can reduce taxable salary under the old regime. The ordinary new regime does not allow that exemption. Compare the correct income year and your verified deductions in the salary calculator.

Delayed PF or ESI contribution payments can attract interest and damages. Check the wage period, payment deadline and any notified extension; payment and return filing are separate tasks.

1. Minimum Wages and VDA:Identify the sector, role, grade, zone and effective period in the applicable notification. Kerala VDA calculations require the notification's CPI series, base and rate per point; one generic rate does not cover every occupation.

2. Bonus and Gratuity:Check establishment coverage, individual eligibility, wages and service before estimating a liability. A provision inside CTC is an employer cost estimate and does not itself establish an employee's entitlement on exit.

3. Labor Welfare Fund (LWF): Employers must ensure correct employee and employer contribution ratios are calculated and remitted to prevent compliance actions.