I am just about to join a new company. As per our discussion, they informed me that I would be receiving 25k. However, upon receiving the offer letter, I noticed discrepancies. I am unsure about how they will be paying me and what risks are involved in that. I have attached an image file of the salary structure I received from their side.
Could you please let me know the final amount I will be receiving after all deductions?
Thank you.
From India, Mumbai
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Could you please let me know the final amount I will be receiving after all deductions?
Thank you.
From India, Mumbai
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This CTC breakup is totally wrong. Some of the things I found:
1. HRA should be 40% or 50% of the basic as per the act.
2. PF calculation is totally wrong. You should ask them (PF contribution is on Basic, Employee - 12%, Employer - 12%).
3. As per the CTC given to you, you are not eligible for ESI benefits because your gross is more than INR 15,000.
4. If I consider this CTC, then your in-hand salary will be INR 20,905. Deductions include PF/ESI, bonus you will receive yearly, and gratuity - eligible after 5 years of continuous service.
Please clarify these terms with HR.
From India, Mumbai
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4291. HRA should be 40% or 50% of the basic as per the act.
2. PF calculation is totally wrong. You should ask them (PF contribution is on Basic, Employee - 12%, Employer - 12%).
3. As per the CTC given to you, you are not eligible for ESI benefits because your gross is more than INR 15,000.
4. If I consider this CTC, then your in-hand salary will be INR 20,905. Deductions include PF/ESI, bonus you will receive yearly, and gratuity - eligible after 5 years of continuous service.
Please clarify these terms with HR.
From India, Mumbai
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CTC Breakdown Concerns
The CTC breakup is incorrect, and the components included in the CTC are also inaccurate. It is not an ethical practice and not a genuine CTC to attract employees; some companies play these kinds of tricks.
As per your CTC structure, I am providing the following information:
Monthly Annual
BASIC 6250 75000
HRA 5000 60000
Conveyance 3125 37500
Child Education 1095 13140
Special Allowance 655 7860
Other Allowances 2500 30000
EPF/ESI 1095 13140
Bonus 1750 21000
Gratuity 3375 40500
Your Gross Salary: 18625
Your Take Home After Deductions:
Only PF 12% on Basic: 750
Your Salary: 17875
Professional Tax Deduction: 200
Your Take Home Salary: 17675
Your Gross Salary is more than 15000, so you are not eligible for ESI. PT differs from state to state. Your CTC is 25000 per month, but they have included Gratuity, Bonus, etc. That amount you will not get every month.
From India, Hyderabad
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The CTC breakup is incorrect, and the components included in the CTC are also inaccurate. It is not an ethical practice and not a genuine CTC to attract employees; some companies play these kinds of tricks.
As per your CTC structure, I am providing the following information:
Monthly Annual
BASIC 6250 75000
HRA 5000 60000
Conveyance 3125 37500
Child Education 1095 13140
Special Allowance 655 7860
Other Allowances 2500 30000
EPF/ESI 1095 13140
Bonus 1750 21000
Gratuity 3375 40500
Your Gross Salary: 18625
Your Take Home After Deductions:
Only PF 12% on Basic: 750
Your Salary: 17875
Professional Tax Deduction: 200
Your Take Home Salary: 17675
Your Gross Salary is more than 15000, so you are not eligible for ESI. PT differs from state to state. Your CTC is 25000 per month, but they have included Gratuity, Bonus, etc. That amount you will not get every month.
From India, Hyderabad
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I appreciate mr pradeep’s detailed answer. However I feel that for calculation purposes, bonus and gratuity components also need to be taken into account aa they are deferred payments. Regards
From India, Thane
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From India, Thane
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Sorry, Mr. Pardeep, but you have taken the wrong figures in your calculation:
Monthly vs. Annual Calculation
- **BASIC:** 6250 (Monthly) / 75000 (Annual)
- **HRA:** 5000 (Monthly) / 60000 (Annual)
- **Conveyance:** 3125 (Monthly) / 37500 (Annual)
- **Child Education:** 1095 (Monthly) / 13140 (Annual) vs. 655 (Monthly) / 7860 (Annual)
- **Special Allowance:** 655 (Monthly) / 7860 (Annual) vs. 2500 (Monthly) / 30000 (Annual)
- **Other Allowances:** 2500 (Monthly) / 30000 (Annual) vs. 3375 (Monthly) / 40500 (Annual)
Total: 18625 vs. 20905
20905 is your cash in hand.
750 (LESS PF DED)
20155 (NET TAKE HOME SALARY)
From India, Delhi
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Monthly vs. Annual Calculation
- **BASIC:** 6250 (Monthly) / 75000 (Annual)
- **HRA:** 5000 (Monthly) / 60000 (Annual)
- **Conveyance:** 3125 (Monthly) / 37500 (Annual)
- **Child Education:** 1095 (Monthly) / 13140 (Annual) vs. 655 (Monthly) / 7860 (Annual)
- **Special Allowance:** 655 (Monthly) / 7860 (Annual) vs. 2500 (Monthly) / 30000 (Annual)
- **Other Allowances:** 2500 (Monthly) / 30000 (Annual) vs. 3375 (Monthly) / 40500 (Annual)
Total: 18625 vs. 20905
20905 is your cash in hand.
750 (LESS PF DED)
20155 (NET TAKE HOME SALARY)
From India, Delhi
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Can anyone please explain if the employer includes gratuity and EPF (both employer and employee parts) as part of the gross salary of the employee, will the in-hand salary be affected (if we are talking about per month salary)?
Regards,
Ruchi
From India, Delhi
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Regards,
Ruchi
From India, Delhi
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I appreciate your reply. I have one more doubt, and I request seniors to clarify. If gratuity and employer EPF are part of the gross salary, then while calculating salary (as explained above by Mr. Pradeep and others), one must take care of these factors, i.e., EPF and gratuity. Kindly update me with the salary calculation having a share of gratuity and employer EPF.
Thanks,
Ruchi
From India, Delhi
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Thanks,
Ruchi
From India, Delhi
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Dear Sujit, your salary slip does not comply with legal statutes. As per a recent amendment in the PF Act, anyone with a basic salary of less than 15,000 is under PF coverage. HRA has been explained by other Cite Community members. Conveyance above 800 becomes taxable. I would recommend you to rethink your decision to join such an organization.
Regards,
Sandeep Yadav
From India
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Regards,
Sandeep Yadav
From India
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SALARY SHEET CALCULATION.xls
Salary calculation.doc