How To Read Your Payslip, Finally

You signed for ₹8 lakh a year, but your account shows ₹58,000 a month — not ₹66,666. That gap feels like betrayal, but it's just how salary structures work.
CTC includes employer EPF, gratuity, and insurance — money that's 'yours' on paper but never touches your bank. On an ₹8 lakh CTC, EPF alone can take out ₹1,800–₹2,400 a month before tax even applies.
Add professional tax (~₹200) and TDS, and gross salary itself is already 10–15% less than CTC.

What this means for you

• Your real EMI affordability depends on net pay, not the CTC in your offer letter.
• That 'missing' EPF money isn't lost — it's building retirement savings, often ₹50,000+ a year.
• Knowing gross vs net helps you plan SIPs around what actually hits your account.

What you can do

• Pull out your latest payslip and line up CTC, gross, deductions, and net so nothing surprises you again.
• Budget EMIs and SIPs using net pay only — treat CTC extras like bonuses, not baseline income.

Once you see where every rupee of your CTC goes, your payslip stops feeling confusing — it starts feeling like a map.

Grow with clarity 🌱