Salary Deductions After Appraisal: Is My Take-Home Pay Correct?

Hi all, I received an appraisal in May, and my monthly CTC is Rs. 14,000. However, my monthly deductions amount to Rs. 1,201, leaving me with a salary of Rs. 11,420. Is this supposed to happen?

Thank you.

You are discussing the monthly CTC, where generally PF is shown as the employer's contribution as part of CTC. If you remove the Employer PF, you will arrive at the figure of your Monthly Gross salary. From this amount, if you deduct the PF employee contribution, you will get the Net take-home pay. Please check your payslip for all allowances.

Thank you.

My monthly CTC is 14k, and I am getting 10k in hand. Employers used to add their contribution to ESI and PF to CTC, and it's not wrong. So, be sure your salary is fine.

Yes, this can happen because of many issues as suggested in the above post. The amount of CTC and take-home pay can differ. If you want accuracy, you have to furnish the details as suggested by Mr. Ved Prakash.

Generally, companies calculate CTC by adding the company's contribution to PF as well. Therefore, when calculating your take-home pay, you need to deduct both your contribution and the company's contribution from the CTC.

Regards,
kpn

You must be getting a payslip/salary slip, I suppose. All the deductions, additions, gross, and net salary are mentioned in the payslip. If you are not getting the payslip, you can go to HR and ask for the breakdown of your salary.

Regards,
Swapna

Salary Calculation Breakdown

It can be assumed that the calculation will be as follows:

- Basic: 7000
- Gross: 12621
- EMPLOYEE PF Contribution: 840
- EMPLOYEE ESI Contribution: 221
- EMPLOYER'S ESI Contribution: 599
- EMPLOYER'S PF Contribution: 780
- PROFESSIONAL TAX: 140

If your professional tax is only 20, then your basic will be 8000, and your PF contribution will be 960 instead of 840. Kindly provide the breakup of the deductions to have a clear picture.

Hi Saji, you are correct. My basic salary is 7,200. The gross salary is 12,621. The PF is 780, and the company's PF is also 780. The ESI from my side is 221, and the company's ESI is 599. PT is 200. I receive 14,000 - (780 + 221 + 200) - (780 + 599) = 11,420 only.