TaxSastra

CTC Structuring & Salary Optimisation

How a salary is structured — not just its size — decides how much of it your employees actually keep, and how much compliance the structure creates. Thoughtful CTC design improves take-home pay at no extra cost to the company, which is a real retention lever.

With the Income-tax Act, 2025 and the default new regime reshaping which allowances still help, salary structures need a fresh look rather than last year's template.

Key features and requirements

  • Balancing fixed pay, allowances and perquisites tax-efficiently
  • Aligning structure with the new (default) vs old regime for employees
  • Retirement and benefit components (PF, NPS, gratuity)
  • Reimbursements and flexible-benefit components
  • Employer-side cost and compliance implications
  • Consistency with payroll and TDS treatment

How TaxSastra handles this

We design salary structures that maximise employee take-home within the current tax law, keep the company’s costs and compliance clean, and slot straight into payroll.

What’s included
  • CTC design and salary structuring
  • Regime-aware optimisation for employees
  • Allowance and perquisite structuring
  • Retirement/benefit component design
  • Alignment with payroll and TDS
  • Advisory on the Income-tax Act, 2025 impact
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