Confused About My Net Take-Home Salary: Am I Calculating It Wrong or Being Underpaid?

Hi guys, please help. What should be my net take-home?

My CTC is 3,50,000, i.e., monthly 29,166. The components are as follows:
- Basic + DA = 10,500
- HRA = 5,250
- Executive allowance = 3,675
- Personal compensatory allowance = 4,927
- Transport allowance = 800
- Medical reimbursement = 1,250
- LTA = 1,000
- PF = 1,260
- Gratuity = 505

Total CTC equals monthly components + annual components + PF + Gratuity. The formula for net take-home is Total earnings - Total deductions.

However, when I add up net take-home + PF 1,260 + Gratuity 505 + LTA 1,000 + PT 200 + LWF + death fund, it does not come to my monthly CTC of 29,166. What am I missing in my calculation? Please help.

Is my net take-home of 24,880 right or am I being paid less? Kindly help.

Hi! Meet

When calculating the CTC, you should take into account PT. For the remaining amount, it might be something which your company provides in addition to your CTC. This is because when you calculate the net take-home pay + PF 1260 + gratuity 505 + LTA 1000, it totals to 29,166.

Chitra

Dear Chitra & OM,

Thank you for caring to reply!

My net take-home is 24880 + pf 1260 + gratuity 505 + LTA1000 + PT 200 = 27845 (+LWF 12 + death fund 50). Still, it's not close to my monthly CTC of 29166. Do you suggest I should add PT of 2500 yearly to my monthly CTC? Why should I add it every month? Although PT is part of your Payslip and is a tax deducted from monthly salary, it is not a component of the total CTC. I hope you must have understood my point.

Kindly suggest.

Thanks & Regards,
Mayank Jain

Hi Mayank,

I forgot to add "not" in my previous post. PT is not to be considered during the calculation of CTC. Could you give me some clarification regarding what is LWF and how much is your death fund? Is it only 50?

Also, please let me know the calculation by which you have arrived at your net take-home amount of 24880.

Chitra

I think your salary is 24880 + PF 1260 + gratuity 505 + LTA 1000 + PT 200 + medical reimbursement 1250 = 29095 (+ LWF 12 + death fund 50).

The medical reimbursement amount is deducted initially and given back on producing medical bills. This may be done on a quarterly or yearly basis. I may be wrong, but you can check with your finance department.

Hi Chitra,

For your information, LWF stands for "labour welfare fund" and it is deducted as Rs 12 per month. Additionally, the death fund deduction is Rs 50.

The calculation for my net take-home pay is as follows:

EARNINGS
- Basic + DA = 10,500
- HRA = 5,250
- Executive Allowance = 3,675
- Personal Compensatory Allowance = 4,927
- Transport Allowance = 800
- Medical Reimbursement = 1,250
Total Earnings = 26,402

DEDUCTIONS
- PF = 1,260
- PT = 200
- LWF = 12
- Death Fund = 50
Total Deductions = 1,522

Therefore, my net take-home pay is 24,880.

If you need any further clarification, please do not hesitate to reach out to me.

Thank you again for your help. I appreciate your effort in trying to figure it out, as other members are not putting in as much effort.

Thanks and regards,
Mayank Jain

Hi Christina,

Thanks for the reply. This can be a possibility, but if this were the case, then the medical reimbursement amount shown in the salary slip should be 1250 minus the xyz deduction. However, I have been paid the full 1250. My point is when I try to calculate in reverse order, i.e., net payable + deductions + annual component/12 (LTA in my case), it does not come to my monthly CTC (CTC/12). Something is missing out somewhere, or I am being paid less. Try to calculate your CTC in this way and let me know whether you are getting paid correctly or not.

Thanks & Regards,
Mayank Jain