This component is important because it becomes the basis on which other components of your salary are calculated.įor instance, let us say in your new offer your CTC, i.e. However, there is no hard and fast rule to how much percentage this component should be. It is generally 30-50% of the total salary. The basic salary forms the largest portion of your monthly take-home. Here’s a little guide on how to read your salary statement, which will help you better understand why you get what you get at the end of the month. Well, join the club! Reading payslips can be a pain if you don’t understand the calculations behind it. The numbers that seemed high now seem low and you have absolutely no idea on how the calculations were done. You get your payslip and scratch your head to figure out why your big fat CTC now looks like peanuts. A month passes and you get a text message notifying you that your hard-earned money has been credited to your bank account.īut wait, that’s not what you expected! In fact, you are quite disappointed with your monthly take-home. You quickly glance through the break-up but don’t pay much heed because your overall cost to the company (CTC) is lucrative. You are sent your offer letter that confirms your appointment along with the salary break-up. The deal gets sweeter when you end up with a fat salary package. It’s always a great joy when you land a job.
