Question
My offer letter shows a CTC figure but my monthly take-home is much lower, and I want to understand why.
Answer
Your in-hand salary is CTC minus the parts that never reach your bank account. Start with CTC, remove the employer PF and gratuity contributions to get gross salary. From gross, deduct your own 12% PF, any ESI, professional tax, and TDS on salary to arrive at take-home pay. CTC also bundles benefits like bonus and insurance that are not paid monthly, which is why CTC always looks bigger than what you actually receive. A typical take-home is roughly 70 to 85% of CTC depending on structure. Break down your own figure with our salary / CTC calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.