Query Regarding Total Earnings on Payslip
I have a query regarding the Total Earnings on my payslip. The offered CTC of my company is Rs. 110,000 per year, and it is being displayed as Rs. 8,946 per month. Is this correct? I am only getting paid Rs. 6,965 per month.
When I inquired about the reason, the HR department replied: "Your Total CTC is Rs. 110,000, as per your salary statement. However, after deducting your PF & ESI amount, you will receive Rs. 6,965 by hand."
The total salary per month should be Rs. 9,167 when we divide Rs. 110,000 by 12 months. Instead, the payslip mentions Rs. 8,946, which I feel is not the correct process. The Gross salary mentioned above the Rs. 8,946 is Rs. 7,649.
Kindly assist me with this matter.
Regards,
Chethan.C
From India, Bangalore
Acknowledge(0)
Amend(0)
I have a query regarding the Total Earnings on my payslip. The offered CTC of my company is Rs. 110,000 per year, and it is being displayed as Rs. 8,946 per month. Is this correct? I am only getting paid Rs. 6,965 per month.
When I inquired about the reason, the HR department replied: "Your Total CTC is Rs. 110,000, as per your salary statement. However, after deducting your PF & ESI amount, you will receive Rs. 6,965 by hand."
The total salary per month should be Rs. 9,167 when we divide Rs. 110,000 by 12 months. Instead, the payslip mentions Rs. 8,946, which I feel is not the correct process. The Gross salary mentioned above the Rs. 8,946 is Rs. 7,649.
Kindly assist me with this matter.
Regards,
Chethan.C
From India, Bangalore
Acknowledge(0)Amend(0)
Hi, Chethan,
Please understand there is a significant difference between gross and CTC. The take-home salary always depends on the salary breakup, so check your payslip for the breakup of basic, HRA, and other components. PF deduction is based on your basics.
Regards,
V. Vinutha
From India, Bangalore
Acknowledge(0)Amend(0)
3Please understand there is a significant difference between gross and CTC. The take-home salary always depends on the salary breakup, so check your payslip for the breakup of basic, HRA, and other components. PF deduction is based on your basics.
Regards,
V. Vinutha
From India, Bangalore
Acknowledge(0)Amend(0)
Hello Vinutha, By the way how they goin to deduct 2202/- out of 9167/-Rs... please go through the attachment... Thank you
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Chethan,
Please see in your payslip, the gross salary is mentioned as 7,649 Rs. According to your basic + DA, your PF deduction will be 550 Rs and your ESI will be 110 Rs, totaling 660 Rs. Therefore, your take-home salary should be 6,989 Rs.
Regards,
V. Vinutha
From India, Bangalore
Acknowledge(0)Amend(0)
Please see in your payslip, the gross salary is mentioned as 7,649 Rs. According to your basic + DA, your PF deduction will be 550 Rs and your ESI will be 110 Rs, totaling 660 Rs. Therefore, your take-home salary should be 6,989 Rs.
Regards,
V. Vinutha
From India, Bangalore
Acknowledge(0)Amend(0)
I think it is not too far to hear LTE (Loss To Employee) in that CTC breakup. It is almost customary to follow a 60-40 model, i.e., in the annual CTC, 60% is the monthly gross and the remaining 40% is the annual component. It is the luck of the employee to recover this 40% with much effort. CTC is a gimmick that we have adopted since the outsourcing era. In the event of an employee surviving beyond a year, then they can feel better financially. Based on the fictitious model, employees with high aspirations swipe cards left and right and end up in agony that cannot be solved under 'Employee Grievances'.
Regards,
Chandru
From India, Madras
Acknowledge(0)Amend(0)
Regards,
Chandru
From India, Madras
Acknowledge(0)Amend(0)
Hi chetan, Even i am facing the same problem,if u once get the solution pls forward it to me. Answers welcome. Regards, Dhrupad.S
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Mr. Chethan,
Understanding CTC and Payslip Discrepancies
Always, CTC includes the employer's contribution towards EPF, bonus/ex-gratia payable, and gratuity payable. Hence, you do not find these items in your salary slip. Some companies may pay the bonus/ex-gratia in the monthly payslip. Therefore, please check your appointment order in which the breakup for CTC must be available. If it is not there, contact the HR department and ask for the breakup for CTC. Many people mistake the gross salary figure with the CTC. Generally, the gross salary is a part of the CTC.
Best wishes,
S. Gopalakrishnan
From India, Chandigarh
Acknowledge(0)Amend(0)
Understanding CTC and Payslip Discrepancies
Always, CTC includes the employer's contribution towards EPF, bonus/ex-gratia payable, and gratuity payable. Hence, you do not find these items in your salary slip. Some companies may pay the bonus/ex-gratia in the monthly payslip. Therefore, please check your appointment order in which the breakup for CTC must be available. If it is not there, contact the HR department and ask for the breakup for CTC. Many people mistake the gross salary figure with the CTC. Generally, the gross salary is a part of the CTC.
Best wishes,
S. Gopalakrishnan
From India, Chandigarh
Acknowledge(0)Amend(0)
It is evident from your salary slip that your C.T.C. includes the amount of gratuity. If you divide your annual gratuity amount of 2,648 by 12, it equals 220.66, rounded to 221. So, your actual C.T.C. is 8,946 + 221 = 9,167, which is your actual monthly C.T.C. = 110,000 / 12 = 9,166.66, rounded to 9,167. I hope this satisfies your query.
Regards,
C.M. Mohla
From India, Delhi
Acknowledge(0)Amend(0)
Regards,
C.M. Mohla
From India, Delhi
Acknowledge(0)Amend(0)
Dear Chethan , Ask your HR to provide you the salary components.There your every deductions will be available.So by this you can easily rectify your salary.. Regards Vikas Sharma
From India, Chandigarh
Acknowledge(0)Amend(0)
From India, Chandigarh
Acknowledge(0)Amend(0)
The salary slip specimen shows the employer's contribution for the PF & ESI along with the Gratuity constraint (explained very well by Mr. C.M. Mohla), which sums up your CTC. As per your salary in hand, the deduction part comes into the picture. Now, from your Gross salary of 7,649, the deductions are as follows:
Employee Contributions:
1. PF contribution = (basic + DA) * 12% = (3,825 + 765) * 12% = 550.80
2. ESI contribution = gross * 1.75% = 133.85
Total deduction = 550.80 + 133.85 = 684.65
Hence, the total salary in hand = gross - deductions = 7,649 - 684.65 = 6,964
I hope the above explanation, along with C.M. Mohla's explanation, helps serve your purpose.
From India, Pune
Acknowledge(0)Amend(0)
Employee Contributions:
1. PF contribution = (basic + DA) * 12% = (3,825 + 765) * 12% = 550.80
2. ESI contribution = gross * 1.75% = 133.85
Total deduction = 550.80 + 133.85 = 684.65
Hence, the total salary in hand = gross - deductions = 7,649 - 684.65 = 6,964
I hope the above explanation, along with C.M. Mohla's explanation, helps serve your purpose.
From India, Pune
Acknowledge(0)Amend(0)
Dear fellow HR professionals,
Understanding CTC (Cost To Company)
CTC means Cost To Company, which includes all expenses incurred by the company while engaging an employee. Apart from salary components, others like HRA, EPF, ESI contributions, bonus, medical, transport, canteen subsidy, leave travel, gratuity, and any other expenses spent on the employee are factored into CTC. For the company, it represents the cost of hiring a person. Many companies disclose how they have calculated the CTC beforehand to prospective employees. It essentially forms a contract between the employer and the employee. I hope this clarifies any misunderstandings about CTC.
Thanks,
Regards,
HC. Subbaramu
HR Consultant
Bangalore
From India, Kochi
Acknowledge(0)Amend(0)
Understanding CTC (Cost To Company)
CTC means Cost To Company, which includes all expenses incurred by the company while engaging an employee. Apart from salary components, others like HRA, EPF, ESI contributions, bonus, medical, transport, canteen subsidy, leave travel, gratuity, and any other expenses spent on the employee are factored into CTC. For the company, it represents the cost of hiring a person. Many companies disclose how they have calculated the CTC beforehand to prospective employees. It essentially forms a contract between the employer and the employee. I hope this clarifies any misunderstandings about CTC.
Thanks,
Regards,
HC. Subbaramu
HR Consultant
Bangalore
From India, Kochi
Acknowledge(0)Amend(0)
Besides employers designing a rigid CTC component breakup, of late, some companies like Procter & Gamble and TCS have introduced the 'My Pay My Choice' system wherein every executive can design their own flexible pay components within the CTC figure at the time of joining. Hope 'conditions apply' without saying. Definitely not all employers would accept this model.
LTE (Loss To Employee) in CTC Breakup
I think it is not too far to hear LTE (Loss To Employee) in that CTC breakup. It is almost customary to have a 60-40 model, i.e., in the annual CTC, 60% /12 is the monthly gross, and the remaining 40% is the annual component. It is the luck of the employee to recover this 40% with much effort. CTC is a gimmick that we have copied since the time of the outsourcing era. In the event of an employee surviving beyond a year, then he can feel better monetary-wise. Based on the fictitious model, employees with high dreams swipe cards left and right and end up in agony that cannot be solved under 'Employee Grievances'.
Regards,
Chandru
From India, Madras
Acknowledge(1)Amend(0)
LTE (Loss To Employee) in CTC Breakup
I think it is not too far to hear LTE (Loss To Employee) in that CTC breakup. It is almost customary to have a 60-40 model, i.e., in the annual CTC, 60% /12 is the monthly gross, and the remaining 40% is the annual component. It is the luck of the employee to recover this 40% with much effort. CTC is a gimmick that we have copied since the time of the outsourcing era. In the event of an employee surviving beyond a year, then he can feel better monetary-wise. Based on the fictitious model, employees with high dreams swipe cards left and right and end up in agony that cannot be solved under 'Employee Grievances'.
Regards,
Chandru
From India, Madras
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
CTC SALARY SLIP FORM.xls
Salary & Compensation Guidelines.zip