India CTC offer optimizer.
Fix your budget. Optimize the CTC split (Basic, HRA, allowance, reimbursement) for maximum take-home. Compare standard structure vs. tax-lean. New and Old regime. FY 2025-26 slabs. No email wall.
Annual cost to company you want to offer.
Structure comparison
Standard 50/20/30 split
- Basic (50%)
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- HRA (20%)
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- Special allowance (30%)
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- EPF, employee 12%
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- Profession Tax
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- Income tax
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Monthly in-hand
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Tax-lean structure (higher flexi/reimbursement)
- Basic (50%, same floor)
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- HRA (15%)
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- Special allowance (20%)
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- Reimbursements (meal, mobile, equipment) (15%)
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- EPF, employee 12%
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- Profession Tax
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- Income tax (only on salary, not reimb.)
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Monthly in-hand
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Take-home difference (lean vs. standard)
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Reimbursements (meals, mobile, equipment) are not taxable income if documented. Tax-lean structure shifts the split toward reimbursements, lowering taxable salary. Both structures total to the same CTC budget. Choose based on your hire's deduction profile and take-home preference.
How the structures are built.
Standard 50/20/30 split
Basic 50% (Labour Code floor), HRA 20% (preserves tax deduction, Old regime), special allowance 30%. This is audit-clean and works for most hires. Taxable salary = Basic + HRA + special allowance minus deductions.
Tax-lean structure
Basic stays 50% (cannot lower and comply). HRA drops to 15%, special allowance to 20%, and reimbursements rise to 15% (meals, mobile, equipment). Reimbursements are not taxable if documented; only salary is taxed. Lower tax, higher in-hand.
Tax calculation, both regimes
New regime: ₹75K standard deduction, 87A rebate up to ₹12L taxable, slabs 5-30%, 4% cess. Old regime: ₹50K standard + assumed ₹1.5L under 80C, same slabs. Both show in-hand after EPF, ESIC (if ≤21k), PT, TDS.
Worked example
On the default ₹24,00,000 CTC budget, the lean structure delivers about ₹1,73,611 in monthly take-home against ₹1,66,597 on the standard split, a gain of ₹7,014 per month at the same employer cost.
CTC optimizer, answered.
Questions on CTC structure and tax efficiency for India offers.
What is the 50/20/30 split?
Basic 50%, HRA 20%, special allowance 30%. This is the Versatile standard: Basic meets the Labour Code 50% floor, HRA preserves tax deduction in Old regime, and special allowance covers the rest tax-efficiently.
What is the tax-lean structure?
Basic still 50% (cannot lower and meet Labour Code rules). Special allowance and reimbursable components (meals, mobile, equipment) push tax burden down. Reimbursements are not taxable income; only salary is. The gain: lower tax outgo, higher in-hand for the same CTC budget.
Which regime saves more?
New regime saves for most India engineers. It has a ₹75,000 standard deduction, 87A rebate up to ₹12L taxable, and slabs rise gently. Old regime wins only if you can max out 80C (₹1.5L), 80D (health), HRA and LTA claims.
Can I use both structures in my offer?
Yes. Run both through this tool. Tell your hire: "We can structure this as X split (₹Y in-hand) or Z split (₹Z in-hand). Which suits you?" Flexibility on structure within budget is a competitive edge.
When is CTC optimization the wrong answer?
When the hire is non-resident or on a special visa with different tax rules. For standard residents on employment visas, this optimization is sound. Unusual cases (equity-heavy, part-year, above ₹50L) need payroll modeling, not a form.
Longer reading: Cost of hiring in India · EOR services in India · Related tool: India income tax calculator
Tell us where you are on the decision.
A role you want to hire, a team you want moved, or just the two routes to compare. A named person replies in 4 to 6 hours.
What the first call covers
30 minutesA cost comparison for your headcount, on your numbers, both routes.
- A written cost breakdown
- Entity documents before the call
- PF, ESI, TDS, termination law
- No follow-up sequence
You pick the time, we send a Meet link. Any timezone.