Understanding CTC vs Take Home
CTC (Cost to Company) is what the company spends on you. Take-home salary is what you actually receive in your bank account after all deductions.
Typical Salary Components
| Component | % of CTC | Taxable? |
|---|---|---|
| Basic Salary | 35-50% | Yes |
| HRA | 15-25% | Partially exempt |
| Special Allowance | 10-30% | Yes |
| PF (Employer) | 3.6-4.8% | No (up to limit) |
| Gratuity | 4.17% | On exit |
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Salary Negotiation Tip
Focus on negotiating Base CTC rather than total package. Variables like bonus may not be guaranteed. Also consider benefits like insurance, ESOPs, and leave policies.
Monthly Deductions from Salary
- PF: 12% of Basic (employee contribution)
- Professional Tax: ₹200-300/month (varies by state)
- TDS (Income Tax): Based on tax slab and declarations
- Insurance: If employer provides and deducts