HR Glossary
Salary Breakup
The detailed division of an employee's total compensation into individual components.
Definition
A salary breakup (or salary structure) shows how an employee's total CTC is divided into specific components — basic, HRA, allowances, and deductions — each of which may have different tax and compliance implications.
Why It Matters
A well-designed salary breakup can meaningfully improve an employee's take-home pay through tax-efficient structuring.