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Free template template · Word

Salary Structure Format for IT Company

An IT salary structure format shows how a tech employee's CTC is split into fixed pay, allowances, flexible benefits, statutory contributions and variable pay, and how it converts to monthly in-hand salary. It reflects IT-specific components such as shift allowance, internet or WFH allowance, flexi benefit plan, ESOP note and target variable pay.

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[Company Logo][Company Name]

SALARY STRUCTURE / CTC ANNEXURE

Employee Name:
[Employee Name]
Employee ID:
[Employee ID]
Designation / Grade:
[Designation] / [Grade]
Work Location:
[Work Location]
Effective Date:
[Date]

A. Fixed Pay

ComponentMonthly (₹)Annual (₹)Notes
Basic Salary[Basic Salary][Amount][Percentage]% of CTC
House Rent Allowance[HRA][Amount]Tax exemption as per rules
Special Allowance[Amount][Amount]Balancing component
Total Fixed Gross[Amount][Amount]

B. Flexible Benefit Plan

ComponentMonthly (₹)Annual (₹)Notes
Internet / WFH Allowance[Amount][Amount]Against bills, if applicable
Meal Benefit[Amount][Amount]As per policy
Leave Travel Allowance[Amount][Amount]Claim as per rules
Total Flexi Benefits[Amount][Amount]

C. Employer Contributions and Benefits

ComponentMonthly (₹)Annual (₹)Notes
Employer PF[Amount][Amount]12% of basic, as per PF rules
Gratuity[Amount][Amount]Payable after 5 years' continuous service
Group Health Insurance[Amount][Amount]Premium as per policy

D. Variable and Other Pay

ComponentMonthly (₹)Annual (₹)Notes
Target Variable Pay-[Amount]Based on performance, paid [quarterly / annually]
Shift Allowance[Amount] per shift-Eligible shifts only, outside CTC
ESOP--As per grant letter, if any

E. Total CTC and Estimated In-hand

ItemMonthly (₹)Annual (₹)
Total CTC (A + B + C + D)-[CTC]
Less: Employee PF[Amount][Amount]
Less: Professional Tax[Amount][Amount]
Less: Income Tax (TDS, estimated)[Amount][Amount]
Estimated Monthly In-hand[Amount]-

Notes: Income tax depends on the tax regime chosen and declarations submitted. Variable pay and shift allowance are not guaranteed and depend on eligibility. Components may be restructured to comply with law, without reducing total CTC.

For [Company Name]
[Authorised Signatory]
Human Resources
Accepted by
[Employee Name]
Date: [Date]

What this template includes

  • Fixed components: basic, HRA, special allowance
  • Flexible benefits like internet, meal or LTA
  • IT allowances: shift or on-call allowance
  • Employer PF and gratuity
  • Target variable pay
  • Monthly deductions and estimated in-hand

When to use it

  • Attaching a CTC annexure to an IT offer or appointment letter
  • Designing pay bands for grades
  • Explaining in-hand salary to candidates
  • Restructuring pay after the Labour Codes' wage definition changes

How to customise this template

  1. 1Set basic as a percentage of CTC matching your policy and the wage definition
  2. 2Add or remove flexi components
  3. 3Insert shift allowance only for shift roles
  4. 4Update PF treatment on capped or actual basic
  5. 5Recalculate in-hand after professional tax for your state

HR tips

  • Review basic and allowance proportions against the Labour Codes wage definition
  • Show variable pay separately so in-hand is not overstated
  • Mention that tax depends on the regime chosen
  • Keep a calculator sheet behind the Word annexure

This format is a starting point. Review component design, PF and gratuity treatment against the Labour Codes, EPF rules, tax law and with a payroll or legal adviser before use.

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Frequently asked questions

What is a typical basic salary percentage in IT companies?+

It varies by company. Review it against the Labour Codes' definition of wages, which affects PF and gratuity calculations.

Why is in-hand salary lower than CTC?+

CTC includes employer PF, gratuity, insurance and variable pay, and monthly pay is reduced by employee PF, professional tax and income tax.

Is shift allowance part of CTC?+

Usually it is shown separately and paid only for eligible shifts, but some companies include a fixed amount in CTC.

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