Confused About My Salary: Why Does My Payslip Show Less Than My Offer Letter?

I am working for a private company and have a confusion regarding their salary structure. Please help me understand it correctly. For example, 45k is mentioned in the offer letter, but when I receive my monthly payslips, there is something else. In the payslip, there are two boxes: one describes the salary structure, and the other describes the deduction amount. In the first box, they show my salary as 42K, which should be 45K. Then, in the second box, they show a deduction amount of rupees 3,000, and finally, they pay me rupees 39,000. Please help me understand this structure; they are not showing the other 3,000 amount anywhere and are cutting rupees 6,000 from my salary.

Thanks.

Understanding Your Salary Structure

In your Total CTC structure, the Company's contribution to PF has been added. Your Monthly Gross Salary is Rs. 42,000 + Company's Contribution of PF Rs. 3,000 = Rs. 45,000, which is your total CTC per month.

In your payslip, on the left-hand side, your total earnings are shown, i.e., Rs. 42,000. On the right-hand side, total deductions are listed, which include your share of PF, i.e., Rs. 3,000.

Please note that in PF, there is a contribution from both the employee and the company. Both amounts are deducted on a monthly basis and deposited into the PF Account. Further, there might be deductions for Professional Tax (State-wise), Income Tax, and miscellaneous deductions like canteen and transport (if applicable).

So don't worry, what is deducted from your salary is legal. Please call me if you need any further clarification.

Regards,
Sumit
[Phone Number Removed For Privacy Reasons]

I appreciate the efforts of Sumit in trying to make sense of your salary slip by making assumptions. But really, how do you expect someone to give you an answer simply by seeing vague things in your post like - 2 boxes which are in my salary slip? At least upload a copy of the appointment letter and salary slip! If you seriously want to know, then you need to give the proper information.

Understanding Salary Structure: CTC vs. Take-Home Pay

When any company selects a candidate and offers, after mutual agreement, a CTC package and take-home package, the candidate's responsibility is to clearly understand the structure offered.

In addition to the Gross salary, there will be PF company contribution, Gratuity component, and ESIC if any (company contribution). After adding this, Cost to Company (CTC) is calculated. As per the Gratuity Act, the company has to make provision after completion of one year to the Gratuity Fund.

Candidates should understand that the take-home salary is based on the Gross salary after deducting PF, ESIC (employee's contribution), PT, loans, advances, etc.

Hope this is clear.

Addressing Salary Discrepancies

Please refer to the offer of appointment letter. It is the responsibility of an employee to discuss the CTC per annum, per month, total gross salary per month, and any potential hidden deductions during the interview and finalization of salary. If the employer has provided an incorrect salary, kindly have a discussion with them and diplomatically raise your claim to try to resolve the issue.

Otherwise, please do not worry. You can claim the money from the employer by raising a dispute before the concerned labor commissioner under section 33 (c) 2 for the recovery of money due from the employer.

Regards,
Raju