50% Basic Rule Calculator for India (New Labour Code 2026)
The 50% basic salary rule is the single biggest payroll change in India. If your current basic is below 50% of CTC, this page runs the numbers: PF (12% of qualifying wages), gratuity accrual on a wider base, and take-home after the allowance pool shrinks.
This URL is the calculator-first experience. For a narrative walkthrough without duplicating the same headings, use the 50% basic salary rule guide, then return here to paste your CTC. For policy context see FAQ and About.
CTC daaliye, current basic structure select kijiye, aur dekhiye new wage definition ke baad monthly in-hand kitna change ho sakta hai.
Current Monthly CTC
₹83,333
State wage floor used
₹20,358/month
Annual CTC band
10L
New wage base
₹41,667/month
New Monthly Take-Home
Calculated for Delhi with a IT/ITES salary structure.
Annual Impact Overview:
Over a year, take-home changes by ₹24,000. Your PF corpus grows by ₹12,000 a year more, and your gratuity accrual increases by ₹400.65 each month.
| Component | Old Structure | New Structure |
|---|---|---|
| Basic | ₹33,333 | ₹41,667 |
| HRA | ₹16,667 | ₹20,833 |
| PF (employee) | ₹4,000 | ₹5,000 |
| PF (employer) | ₹4,000 | ₹5,000 |
| Gratuity accrual | ₹1,603 | ₹2,003 |
| Professional Tax | ₹200 | ₹200 |
| Net Take-Home | ₹75,133 | ₹73,133 |
Last updated: 30 March 2026
Compare with a friend
Share this calculator with a colleague to compare how different CTC bands are affected.
How the 50% Rule Works
Previously, many Indian companies structured salaries with basic as low as 20–30% of CTC, padding the rest with allowances to maximize take-home pay. The new labour code closes this loophole.
Now, wages (basic + DA) must be at least 50% of your total pay. Everything above that — HRA, special allowance, conveyance — stays as allowance. This has a cascading effect on PF (12% of basic), gratuity (15/26 × basic × years), and employer costs.
Impact at Different CTC Bands
See the 50% rule in action across salary levels.
| CTC | Old Take-Home | New Take-Home | Change | PF Growth |
|---|---|---|---|---|
| ₹5 LPADelhi · Basic 30% | ₹38,467 | ₹36,467 | ↓ ₹2,000 | +₹12,000/yr |
| ₹8 LPAMaharashtra · Basic 35% | ₹60,867 | ₹58,467 | ↓ ₹2,400 | +₹14,400/yr |
| ₹10 LPAKarnataka · Basic 40% | ₹75,133 | ₹73,133 | ↓ ₹2,000 | +₹12,000/yr |
| ₹15 LPATamil Nadu · Basic 35% | ₹1,14,300 | ₹1,09,800 | ↓ ₹4,500 | +₹27,000/yr |
| ₹20 LPAHaryana · Basic 30% | ₹1,54,467 | ₹1,46,467 | ↓ ₹8,000 | +₹48,000/yr |
All examples use 12% mandatory PF, IT/ITES industry, and the respective state minimum wage floor.
Step 1: Establish Current Structure
We take your Annual CTC and multiply by your current Basic % to get your existing Basic Salary.
Step 2: Apply 50% Wage Rule
Under the new code, Basic Salary must be at least 50% of CTC. We also check if the state minimum wage is higher and use whichever is greater.
New Basic = max(CTC × 50%, State Minimum Wage × 12)Step 3: Recalculate Deductions
PF: Basic × 12% (employee + employer match)
Gratuity: (Basic ÷ 26) × 15 days per year
Professional Tax: ₹200/month (standard estimate)
Step 4: Compute Take-Home
Take-Home = CTC − Employee PF − Employer PF − Professional Tax