Understanding Salary Differences: Why Is There a Gap Between CTC and Take-Home Pay?

Hello all,

Please clarify my doubt. When I fix a salary of gross 13,000, the take-home amount comes to 11,993, and the CTC is 14,500. There is a difference of Rs. 2,500 between take-home and CTC. This difference accounts for the total of PF and ESI, including both employer and employee contributions. Is this correct?

All the individuals who come for interviews provide information with a difference of Rs. 800 between CTC and take-home. Which is the accurate figure?

Thank you.

Hi,

Until and unless you provide the salary structure of both, it will be difficult to comment or suggest. I am unable to understand the Rs.1500 difference between CTC and gross. You are also requested to note that some companies may not be adding the employer's contribution of PF & ESI to the employee's cost. Please verify and finalize.

Regards,
Kamesh

Dear Mr. Kamesh,

Thank you very much for your response. The breakup is as follows:
Basic - 6600
HRA - 3300
Other Allowance - 2100
Education Allowance - 200
Conveyance - 800
Total - 13000
ESI - Employer Contribution - 618
ESI - Employee Contribution - 228
EPF - Employer Contribution - 885
ESI - Employee Contribution - 780
CTC - 14503
Take Home - 11993

I took this salary calculation Excel sheet from CiteHR only. I will be thankful if you can help me.

Best regards,
Neela S.

The total CTC, as per your calculation, is 15,511 (if you add all the components). Please check again.

Regards,
R. Ponraj