Confused About My Take-Home Salary with a 3 Lakh CTC? Let's Break It Down Together

Hi all, I have joined an MNC company with a good brand name across India. The CTC they offered is 3 lakh per annum with a basic pay of 120,000. What will be my take-home salary?

CTC breakdown:

Basic: 120,000
HRA: 60,000
Bonus: 24,000
Benefits Plan: 68,628
PF: 21,600
Gratuity: 5,772

Earlier, I was getting 279,000 per annum in my previous company.

Dear Member,

The take-home salary is calculated after subtracting the deductions from the monthly payable wages.

Salary Breakdown

It would be better if you could share any offer letter or the actual Excel sheet. However, based on the information provided, the breakdown should be as follows:

Heads = Monthly
Basic = 10,000
HRA = 5,000
Benefit Plans = 5,719 (assuming Rs. 68,628 is paid along with the monthly salary)
Gross = 20,719

(-)PF Ded. = 1,800

Net Wages = 18,919

If there are other deductions (PT, LWF, etc.) applicable, the net wages will change accordingly.

Gratuity and Bonus

The gratuity is a notional figure (considered at 4.81% to calculate the CTC). It is paid based on the last basic salary at the time of retirement or resignation.

I assume that the bonus is paid once a year, hence it is not included in the monthly calculations.

If you wish to compare this with your previous company, please share detailed information so that a senior can provide the necessary insights.

Calculating Monthly Basic Wages

To calculate monthly basic wages, include components like Dearness Allowance (DA), House Rent Allowance (HRA), and other allowances such as conveyance, maintenance, etc. Calculate the sum total gross and then apply statutory deductions like EPF (Employee Provident Fund) EE & ER, ESIC (Employee State Insurance Corporation) EE & ER, MLWF, LWW, Gratuity, Bonus (if applicable), and Professional Tax (PT) at prescribed rates to determine the sum total net salary.

Finally, multiply the net salary by 12 months to arrive at the Cost to Company (CTC).