IF I Want 15100 Net In Hand Without PF Deduction ?

If I want 15100 net in hand without PF deduction, what will be my salary structure? My company adds a bonus to my monthly CTC, which I will get after completion of one bonus. Is the bonus included in the CTC?

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Bonus amount is added to the CTC. If you want 15100 in hand, then your salary structure can be as follows:

Base Pay (Basic) = Rs 7,650/-
HRA = Rs 3,825/-
Conveyance = Rs 800/-
Medicals = Rs 1,250/-
Special Allowance = Rs 1,775/-
Total Gross = Rs 15,300
Less Prof. Tax = Rs 200
Net in Hand = Rs 15,100/-

Remember that if you want a higher HRA or a greater Basic, then it can be adjusted accordingly. Professional Tax is fixed at Rs 200 per month & Rs 300 for February. ESIC, if applicable to your company, shall be applied to you with further deductions from the Gross. PF deductions can be removed if you have opted out.

Hope this clarifies everything. Regards, SS

Dear,

In my company, I told my boss I don't want a deduction for ESIC, so he added 100 Rs to my salary. However, I have a confusion regarding the bonus, as my company is paying bonuses to both staff and workers, and the company is adding the bonus to the monthly CTC. During my interview, I asked for a 15000 in-hand salary, but afterwards, I found out that the company is deducting PF, ESIC, and considering the bonus added in monthly, but I am only able to receive the bonus at the end of the year. I don't understand what to do. Please tell me in detail about the bonus. If considering all deductions and monthly bonus, I will get 13000 in hand. Please tell me what to do.

Well, it actually depends on what kind of bonus they are offering. If it is a guaranteed minimum bonus, then you will get it paid in the following year, maybe sometime around 3-4 months after the year-end, i.e., March. But if it is performance-based pay, then I am afraid not much can be predicted because it simply involves the performance as appraised by the company and also if the company has done well in that year.

If you have asked for a salary of 15,000/- in hand, then I think you should have made it clear that it is the net salary per month that you are speaking about and not the gross salary, as it is evident that gross is prior to deduction. If they are including the bonus in CTC, which you might want on a monthly basis, then you should have discussed it during your offer itself. I had a similar experience in my previous job.

Regards, SS

Yes, it is. But don't give a commanding or whining kind of impression. Go with a smile and ask for clarification. Give your thoughts about what you had in mind when you said Rs 15,000/- in hand. Explain your position and also mention that you had considered deductions for PT & PF, in which case I believe your gross salary should be somewhere around an additional Rs 1,000/-. Also, don't show too much disappointment if it doesn't work out your way. Remember, it's important to excel in your job, and money will come, maybe even if it's a bit late. Perhaps you can inquire about a 3-month or 6-month appraisal initially during the clarification.

Regards,
SS

Please try to understand one simple thing about CTC - Cost to company. It's akin to an amount budgeted by the department/company for you. Beyond this number, not much will be spent on you individually; all deductions would be within this on your account. Some deductions are government-mandated, such as Income Tax, PF contributions, Professional Tax, etc. The company may help you save on tax and rebates like Sodexo or HRA tax rebate, etc. The PF contributions, both contributions, may be part of your CTC.

The thumb rule is that your take-home would be around 30%-35% of the CTC at your slab. Best of Luck

CTC - Cost To Company - explained earlier

Net pay - after all deductions and contributions, money received by you to spend or splurge

Consolidated pay - akin to CTC, but may include Medical & LTA

CTC - Cost To Company - explained earlier

Net pay - after all deductions and contributions, money received by you to spend or splurge

Consolidated pay - akin to CTC, but may include Medical & LTA (which have a tax rebate value on production of supporting documents)

Dear,

As I told my boss that I don't want ESIC, he increased my CTC from 15000 to 15100. Also, I am not taking PF as I am new to the company and not eligible for incentives. The company mentioned that gratuity is included in CTC. So, what will be my net in-hand salary? PT is deducted by 200 from the salary.

Dear Vinod,

You are absolutely right. When I joined the company, I was in need of this job, so I didn't concentrate on my salary. During the discussion, it was decided that I would get 15000/- per month, but the boss did not inform me that it is part of the CTC. I assumed it would be the net pay, but when I received my first paycheck, I noticed that after all deductions, I am only getting 12,896/-. I feel cheated by the company because when I recruit and place someone, the amount the boss offers is usually the net pay. What should I do?

Dear [Recipient],

I have spoken to the boss, but he is not ready to accept the situation that has unfolded. He mentioned that your salary is determined in the CTC and it amounts to 15100/-

Hi 28677c5420521383353edc6e6,

While going through this discussion, I didn't understand why there is a Rs. 300 Professional Tax deduction in the month of February.

Thanks & regards,

@Shila,

If your Gross Earnings per month cross Rs 10,000, then the professional tax per month is deductible at Rs 200. For Annual Professional Tax (12 months from Apr-Mar), it should amount to Rs 2,500 (i.e., Rs 200 x 11 months + Rs 300 = Rs 2,500). In the case of the month of Feb, if an employee falls under the purview of this rule, then the company deducts Rs 300.

Regards,
SS

Hi Aarti,

Don't worry if he doesn't agree. Your CTC still is at Rs 15,000/- and for whatever reasons you might want to use your payslip, it stands at Rs 15,000/-. Gratuity is 15 days' salary for every year completed but on eligibility of completion of 5 years of service with the organization. If that is included in CTC, then your net pay in hand reduces even further. To comment on Rs 12,896/-, the break-up of your CTC would be required.

Did you ask for a quicker appraisal, say on the end of the probation term? Maybe there is an option there if you feel you are worth every penny the company spends on you. If that doesn't happen, then too don't worry. Remember, experience is always valued over and above all other things. Gain the experience and handle your job successfully and keep inventing new ideas which produce results at both ends, employer & employee – you will get what you want either here or somewhere else sooner than later.

Regards,
SS

If Ms. Aarti had given a break-up of the salary offered to her, it would have been easy to understand what exactly she wanted, and it would have been easy to suggest solutions without any assumptions.

Employer and employee need to communicate in the same language while negotiating salary. In this case, Ms. Aarti is insisting on a particular Net Salary, but it seems that she has been offered CTC or Gross, and she is not in a position to understand the difference between Net salary, Gross, and CTC.

It is better to fully understand what has been offered at the time of salary negotiations. Asking for more salary afterwards is very unprofessional and creates a negative impression about the new employee.

Explanation regarding 'Consolidated Salary' given in an earlier post is completely incorrect. Consolidated Salary means a lumpsum fixed salary without any breakup such as Basic, DA, HRA, Incentive, and Any Other Allowance. In the instant case, Ms. Aarti can be offered Rs. 15100 as Consolidated Salary, instead of breaking it down into Basic, DA, and Other Allowances.

Thanks & Regards

I have to know one point that if I am applying for a government job in Delhi and attaching another state's OBC form, can I avail the relaxation? Is the same state's OBC form a must or not? Please advise me.

Sameer

Hi HR Gurus,

I have a doubt to ask you all. Recently, I appeared for an interview and cleared the same. While I was told of the salary, which I could not follow i.e., exactly what is the amount I would get in the net hand per month. (This is for a Marketing Job)

1) Rs. 19,000/- per month x 13 months = Rs. 2,47,000/- (12 months of a year and 1 month extra as a bonus)
2) plus Rs. 750/- for a train pass
3) Rs. 60/- DA per day for the days when I am in a field job.
4) Rs. 300/- Mobile reimbursement per month

Please clarify what my exact net salary per month is.

Your monthly gross salary is Rs. 19,000/-. Your Net Monthly Salary will be Rs. 19,000 minus Applicable Profession Tax and PF if Applicable.

Most probably, you will have to claim Rs. 750 through a voucher after drawing a train pass every month.

DA of Rs. 60/- will also have to be claimed as a reimbursement weekly or monthly, depending upon the actual days of the field job.

Mobile Reimbursement will also be paid as a reimbursement after the payment of the Mobile Bill.

There may be specific rules and procedures prescribed by the employer to claim different reimbursements. Please go through them carefully.

To get very clear answers to your questions, it is better to have a clear talk with your employer.

Thanks & Regards

Hi HR Gurus, I have a doubt to ask you all. Recently, I appeared for an interview and cleared the same. While I was told of the salary, which I could not follow, i.e., exactly what is the Amount I would get in Net hand per month. (This is for a Marketing Job)

1) Rs. 19,000/- per month x 13 months = Rs. 2,47,000/- (12 months of a year and 1 month extra as a bonus)

2) Plus Rs. 750/- for a train pass

3) Rs. 60/- DA per day for the day when I am in a field job.

4) Rs. 300/- Mobile reimbursement per month

Please make me clear what is my exact net salary per month?