Manager with Rs 85 lakh package reveals how much he actually gets each month
Sidharth Maheshwari's insights shed light on the often misleading nature of CTC figures in the job market. For instance, an attractive salary of ₹85 lakh includes various elements such as fixed pay, bonuses, and variable compensation. However, after mandatory deductions like taxes and other non-cash perks, the actual take-home can drop considerably. Therefore, job seekers must be aware of these…
Sidharth Maheshwari, a 36-year-old AVP at a private firm with an impressive ₹85-lakh annual package, has revealed how much he actually gets each month through a detailed Instagram post. The post highlights the difference between the company's cost to employ someone (CTC) and the employee's regular cash compensation.
The ₹85 lakh package breaks down into ₹52 lakh in fixed compensation, ₹13 lakh in variable pay, and ₹15 lakh in ESOPs. However, not all of this money reaches the employee's bank account. A significant portion, including ₹2.4 lakh employer provident fund and ₹0.96 lakh gratuity, are part of the CTC but are not monthly cash compensation.
After accounting for these deductions, the employee's regular payroll figure drops to ₹48.64 lakh. Additionally, employee Provident Fund (PF) contributions amount to ₹2.4 lakh, and income tax under the new tax regime is around ₹10.57 lakh. This leaves only approximately ₹35.6 lakh as the annual net salary, which translates to around ₹2.97 lakh per month.
The post emphasizes that while the ₹85 lakh figure might initially seem attractive, the actual take-home salary is considerably lower. The variable pay component, which is dependent on company or individual performance, is also subject to tax, reducing the amount received before tax. Furthermore, ESOPs, valued at ₹15 lakh, will be vested over four years and depend on the company's valuation and terms.
The post aims to make readers question the psychological processes behind processing salary numbers and to consider the guaranteed amount they receive each month rather than the initial allure of a high CTC.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
