Payslip Decoded: CTC, Gross And Net

You signed up for ₹8 LPA CTC — that's ₹66,667/month on paper. But your account shows ₹57,000. Nothing's wrong; you're just seeing three different numbers.
CTC includes things you never touch monthly — employer's PF contribution (~₹1,800) and gratuity (~₹1,900) are set aside, not paid out. That leaves your Gross around ₹62,000.
From Gross, your own PF contribution (~₹1,800), professional tax (~₹200), and TDS (tax deducted at source, varies, say ₹3,000) get deducted — landing you at ~₹57,000 Net, the number that actually hits your bank.

What this means for you

• Budgeting EMIs off your CTC can overestimate what you can afford by ₹8,000–10,000/month.
• Your PF deduction isn't lost money — it's forced retirement savings growing quietly in the background.
• SIPs should be sized against Net, not CTC, so they don't strain your actual cash flow.

What you can do

• Open your latest payslip and circle CTC, Gross, and Net — Net is your real budgeting number.
• Set EMI and SIP amounts as a percentage of Net salary, never CTC.

Once you know your real number, every money decision after that gets easier.

Grow with clarity 🌱