Estimating Your In-Hand Salary from CTC of 6.2 LPA at Infosys

When you have a Cost to Company (CTC) of 6.2 LPA at Infosys, your in-hand salary often differs from the CTC due to various deductions and components. In this article, we will break down the components of your CTC, including basic salary, allowances, and deductions, to help you estimate your in-hand salary.

Understanding the Components of CTC

Your CTC represents the total cost your employer incurs for your employment. However, to know how much you take home each month, you need to understand the breakdown of your salary into different components:

Basic Salary: This is the core salary component and usually amounts to around 40-50% of the CTC. Allowances: These include various benefits such as House Rent Allowance (HRA), conveyance, and others, which can vary based on your location and job role. Deductions: These include mandatory deductions such as Provident Fund (PF), Professional Tax, and Income Tax.

Breaking Down Your CTC: An Example

Let's assume you have a CTC of 6.2 LPA (Lakhs Per Annum) at Infosys, and we will break down the different components to understand your in-hand salary better.

1. Basic Salary

The basic salary is usually around 40-50% of your CTC. For 6.2 LPA:

Basic Salary 40% of 6.2 LPA 2.48 LPA or approximately 20,667 per month.

2. Allowances

Allowances can vary, but we will use the following assumptions:

HRA (House Rent Allowance): Around 20-30% of the CTC, let's assume 25%. Other Allowances: Let's assume this component is around 5000-10000 per month.

HRA 25% of 6.2 LPA 15,500 per year or 13,750 per month (assuming it covers the remaining 75% of your monthly expenditure).

Other Allowances 7500 to 10,000 per month (depending on your role and location).

3. Deductions

Here are the typical deductions:

Provident Fund (PF): 12% of the basic salary, so for a monthly basic salary of 20,667: Professional Tax: Varies by state, assuming an average of 200 per month. Income Tax: This can vary based on your tax slab and deductions. For simplicity, let's assume a minimal income tax of 2000 per year, or 167 per month.

PF Contribution 12% of 20667 2480 per month.

Total Monthly Deductions PF Professional Tax Income Tax 2480 200 167 2847.

4. Monthly In-Hand Salary Calculation

To calculate your in-hand salary, you need to subtract the total deductions from your gross salary:

Gross Salary Basic Salary HRA Other Allowances Total Deductions Provident Fund Professional Tax Income Tax

Example:

Gross Salary 20667 (Basic) 13750 (HRA) 7500 (Other Allowances) 41,917 per month.

Total Deductions 2480 (PF) 200 (Professional Tax) 167 (Income Tax) 2847 per month.

In-Hand Salary Gross Salary - Total Deductions 41917 - 2847 39070 per month (approximately).

Comparison with Second Plan of 5.5 LPA

Now, if you compare this with the second plan of 5.5 LPA, the breakdown would be:

Basic Salary 40% of 5.5 LPA 2.2 LPA or approximately 18,333 per month. HRA 25% of 5.5 LPA 13,750 per year or 11,458 per month (assuming it covers the remaining 75% of your monthly expenditure). Other Allowances 5000 to 10,000 per month (depending on your role and location). Total Monthly Deductions PF Professional Tax Income Tax 2200 (PF) 200 (Professional Tax) 1458 (Income Tax) 3858 per month.

Example:

Gross Salary 18333 (Basic) 11458 (HRA) 7500 (Other Allowances) 37291 per month.

Total Deductions 2200 (PF) 200 (Professional Tax) 1458 (Income Tax) 3858 per month.

In-Hand Salary Gross Salary - Total Deductions 37291 - 3858 33433 per month (approximately).

Conclusion

Based on the above calculations, your in-hand salary from a CTC of 6.2 LPA at Infosys would be approximately 39070 per month, while with the second plan of 5.5 LPA, it would be around 33433 per month. These figures can vary based on your specific allowances and deductions. For a more accurate figure, check your pay slip or consult your HR department.