Salary

How to Structure Your CTC for Maximum In-Hand Salary (FY 2025-26)

By CA Aman Singhal16 June 20266 min read

Two people on the same CTC can take home very different amounts — the difference is how the package is structured. A few smart choices in your salary breakup can add tens of thousands to your annual in-hand pay, fully legally.

What makes up your CTC

Cost to Company bundles everything your employer spends on you: basic salary, HRA and allowances, the employer’s PF contribution, gratuity and any bonus. Your in-hand is what is left after tax and your own PF.

The levers that matter

HRA: if you pay rent, House Rent Allowance is partly exempt (old regime) — make sure the HRA component is set sensibly.
Employer NPS — 80CCD(2): your employer can contribute up to 14% of basic to NPS, and it is deductible even under the new regime. The most powerful, under-used lever.
Basic salary balance: a higher basic raises HRA and PF (good for savings) but also raises taxable pay — it needs balancing, not maximising.
LTA, meal cards and flexi benefits: small exemptions that add up (mainly old regime).

New vs old regime note: most allowances and HRA are exempt only under the old regime, so structuring matters most there. The employer-NPS deduction is the key exception that works in both.

Before you sign your offer

When you get a new offer or appraisal, model the breakup before accepting the default. Our CTC Breakup Calculator shows your monthly in-hand under both regimes, or a CA can design an optimal structure for your salary.

Try the CTC Breakup CalculatorFree, CA-verified, runs in your browser.

This article is for general information based on provisions for FY 2025-26 and is not individual tax advice. Rules change and exceptions apply — please confirm with a qualified Chartered Accountant before acting.