Take home salary

[shub001]

Hi guys,
I am confused about this:
what does the salary package mean in terms of take home salary,
I mean for ex if someone is placed for 2.5 lacs or someother amount what would it mean as a takehome monthly salary?

It wouldn't make any difference to me
Just wanted to make the picture a bit clear and since there are not many new thread happening so thought will start yet another

[anonymous_user]

Originally Posted by shub001

Hi guys,
I am confused about this:
what does the salary package mean in terms of take home salary,
I mean for ex if someone is placed for 2.5 lacs or someother amount what would it mean as a takehome monthly salary?

It wouldn't make any difference to me
Just wanted to make the picture a bit clear and since there are not many new thread happening so thought will start yet another

Generally whatever salaries are quoted by the different companies , they imply C2C or cost to company. This means that the salary would include apart from base salary, allowances( house rent , vehicle) , retirals ( PF , HIS , Gratuity) and other reimbusements.

So a person getting 2.5 lakh per year would land up getting somewhere around 15,16 thousand bucks in a month

[virus @$&%]

Originally Posted by "anonymous_user

So a person getting 2.5 lakh per year would land up getting somewhere around 15,16 thousand bucks in a month

Adding to anonymous...Guess 15-16 thousand mean a deduction of 4,800 or something. I guess a part could be Income Tax and a part being the Provodent Fund and stuff. So the take home salary is much lesser than the Cost to Company. It generally depends upon your base salary, as perks are not taxable.
So, the next time a company makes you an offer, check out the base salary, maybe a guy having a package lesser than yours is taking more than you, back to his home

[FreakazoiD]

So a person getting 2.5 lakh per year would land up getting somewhere around 15,16 thousand bucks in a month

A CTC of 2.5 lpa usually translates to around 13 K p.m "in hand" after tax-cuts. However, the CTC is in no way way indicative of the actual figure that you will be recieving "in hand". Companies tend to cut large parts for training and other expenditures and then you get a "gross" figure. This "gross" figure inlcudes things like PF, insurance, HRA, and some other allowances that may or may not be a part of your "take home" figure.

Some companies tend to cut as much as 50% of the CTC figure in the form of "intangible costs". TATA Motors that came to our campus for placement recently, had a package of 4.8 LPA (CTC); but we later found out that the "take home" salary would amount to something like 17K p.m. On the other hand, Verizon had a package of 4.2 LPA and their "take home" was almost 30K p.m.

HTH,

cheers,

Rohit

[PRGKT]

Originally Posted by the_altruist

A CTC of 2.5 lpa usually translates to around 13 K p.m "in hand" after tax-cuts. However, the CTC is in no way way indicative of the actual figure that you will be recieving "in hand". Companies tend to cut large parts for training and other expenditures and then you get a "gross" figure. This "gross" figure inlcudes things like PF, insurance, HRA, and some other allowances that may or may not be a part of your "take home" figure.

Some companies tend to cut as much as 50% of the CTC figure in the form of "intangible costs". TATA Motors that came to our campus for placement recently, had a package of 4.8 LPA (CTC); but we later found out that the "take home" salary would amount to something like 17K p.m. On the other hand, Verizon had a package of 4.2 LPA and their "take home" was almost 30K p.m.

HTH,

cheers,

Rohit

Does it hold good for IT companies too? For eg, Cos like TCS,CTS,Satyam announce pay-packages between 2 and 2.5 lacs per annum (for B.Techs). So, considering that they are gonan cut off a good part of it, will the fellow get only 10K in hand?

[FreakazoiD]

Does it hold good for IT companies too? For eg, Cos like TCS,CTS,Satyam announce pay-packages between 2 and 2.5 lacs per annum (for B.Techs). So, considering that they are gonan cut off a good part of it, will the fellow get only 10K in hand?

Hi catcracker,

IT cos like TCS, Infy, Patni etc offer packages to the tune of 2-2.3 lpa (infact Infy's package this yr had dropped to 1.8 lpa )....after all the cuts etc, what you get at the end of the month amounts to approx. 13K (I think its around 11-12 for Infy) On the other hand, there are other IT cos like DCOTG which offer packages in excess of 3 lpa, with around 21-22K in hand p.m. So the figure varies co to co. Ive seen that the bigger IT cos tend to have smaller packages and vice-versa.

HTH,

cheers,

Rohit

[G O V A R]

Some more clarification reg the gross pay more related w.r.t to IT companies.

Companies always quote the CTC (Cost to company). But believe me, unless u get the split up, nothing will be clear. Because in the CTC, they include the company's super-annuation and gratuity fund that we'll get hold only if we stay in the company till retirement or for the duration of 5 years. And some companies include club, courts, swimming, etc allowances into the CTC pulling down your take home.

Much depends on your tax planning. There are a lot of calculations.. i dont want to confuse anyone, but in simple terms, if you save a max of 1 lac, we reduce the income tax we pay by 15 thousand for the whole year. So, take the case of folks in our company where normal pay is 4L p.a.... with saving the 1 lac (i.e declaring that you'll save 1 lac the running yr to the IT dept), we get around 27 to 27.8 per year in hand (out of which you'll invest 1 lac per year on the whole). Without the savings declaration, the income tax rebate on the 1 lac would go off, and hence we get around 24 to 26 K every month.

Simple terms with the money of 4L p.a, we can either 1) dont save and get an amount or 2) save 1 lac and get the other amount.

Believe me with 4.2 L p.a, there is no way we can get more 30K p.m.... unless some money is not accounted for to the IT dept. ... Ive did all sorts of planning... and to my knowledge the max we can get for 4.2L, as quoted, is 30K. If companies have lot of 'perk' pays, like I heard in Cisco, even if the CTC is 3.8, they get around 20K... and Cognizant with CTC 2.6, guys get 18K in hand. Same with newly joined Infy guys... they get around 13K in hand.

HTH,
kathir.

[vedujoshi]

It is safe to assume that you would get a "take home salary" of around 60 to max 65% of the gross salary told to you.....

Consider that you are saving 1 lakh for the 15000 that you save in income tax, ...but that 1 lakh is not accessible to you atleast for next 3 years...and considering the inflation....better spend now

Vedu

[Psychodementia]

Incase you are the kind who want to spend the money now and here, I think the best is when you work as a consultant (not on permanent payroll of the company). There is a stipend which would only have TDS (Tax Deduction at Source). After deduction of TDS of 5.15% which works out to about 1500 of 30K pm for me, Im pretty happy, as there are no hidden costs.

But look at the other side, no paid leaves, constantly under the axe once the project gets over, fringe benifits like creditcards etc. missing so on and so forth. Everything you do for the company would include money from your pocket including food, travel etc. No Sodexho coupons, no LTA, no 0%interest loans.............................

Rgds,

ARUN