Calculating Your In-Hand Salary from a CTC of 3.6 LPA at Birlasoft

When you accept a job offer from Birlasoft, the Cost to Company (CTC) is often presented as a lump sum figure. However, the in-hand salary you receive each month is what truly matters. This article aims to break down the components of your CTC and provide a detailed calculation of your in-hand salary based on a CTC of 3.6 Lakhs Per Annum (LPA).

Breakdown of Salary Components

Gross Salary Calculation

Average monthly gross salary at Birlasoft, based on a 3.6 LPA CTC, can be estimated as approximately ?25,000. This gross salary includes various components but is subject to deductions.

Deductions

Employee Provident Fund (EPF): ?1,350 Health Insurance: ?500 Professional Tax: ?200

Estimated Salary Structure

ComponentAmount Monthly Basic Wage?11,250 House Rent Allowance (HRA)?4,500 Conveyance Allowance?1,600 Medical Allowance?1,250 Other Allowances?6,400 Total Gross Salary?25,000 Total Deductions?2,050 Net In-Hand Salary?22,950

Note: This structure may vary based on the company's policies, location, and specific allowances offered.

Calculating Your In-Hand Salary

To estimate your in-hand salary from a CTC of 3.6 LPA at Birlasoft, consider the following factors:

Components of CTC

Basic Salary: Typically around 40-50% of CTC House Rent Allowance (HRA): Usually around 20-30% of CTC Provident Fund (PF): Generally a deduction of 12% of basic salary Other Allowances: May include medical, travel, etc.

Estimating Basic Salary

Assuming 50% of CTC is the basic salary:

Basic Salary 3.6 LPA * 50% 1.8 LPA or ?15,000 per month

Estimating Deductions

PF Deduction: 12% of Basic Salary 1.8 LPA * 12% ?21,600 annually or ?1,800 monthly Income Tax: This will depend on your tax slab. For a rough estimate, if you fall in the 5% tax slab, your annual income tax would be around 5% of your taxable income after deductions.

Estimating In-Hand Salary

Total Gross Monthly Salary Basic Salary HRA Other Allowances Assuming HRA is 30% of basic (common practice): HRA 1.8 LPA * 30% ?54,000 annually or ?4,500 monthly Total Gross Monthly Salary ?15,000 (Basic) ?4,500 (HRA) ?2,500 (Other Allowances) ?22,000

Net Salary Calculation

Deduct PF and estimated income tax from the gross salary Monthly Deductions PF (1,800) Income Tax (est. 1,000) 2,800 Total Deductions 1,800 1,000 2,800 In-Hand Salary 22,000 - 2,800 ?19,200 (approx.)

Summary

Your estimated in-hand salary would be around ?19,200 per month. This is a rough estimate and can vary based on the exact breakdown of your CTC components and applicable tax deductions. For a precise calculation, you may want to consult your HR department or payroll for the exact figures.