WebSoftOSHow it works
Take-home pay is what remains after employee PF, ESI, professional tax and income-tax deductions. The gap between CTC and take-home is why a salary offer can look different once the structure is explained.
The way CTC is split into basic and allowances also decides the wage base for gratuity and, in some cases, PF.
Frequently asked questions
Is CTC the same as gross salary?
No. CTC also includes employer contributions and benefits such as gratuity and insurance, which are not part of gross salary.