GOAT_Dev
GOAT_Dev
Student

Salary Structure

I'm a fresher and I don't really understand how companies structure CTC components. What is Base Pay, Special Allowance, etc. ? What all components are actually credited in our accounts?

17mo ago
LoveDeathRobots
LoveDeathRobots
Adobe17mo

You will get a better idea once you get first month's payalip.

Everything is credited except Gratuity and ESOPs/RSUs.

Gratuity can be availed only after 5yrs of service in the same company. So can ignore it.

Employer PF contribution will not show up in payslips but will be credited to your EPFO account.

Everything else should hit your bank account after taxes and other mandatory contributions. First deduction would be (employee) PF contribution to EPFO. Then income tax TDS. And finally profession tax.

Variable/Performance pay if any will be credited quarterly/annualy based on company policy.

GOAT_Dev
GOAT_Dev
Student17mo

do we receive the entire HRA as specified in the offer or is it based on the amount as per rent agreement?

LoveDeathRobots
LoveDeathRobots
Adobe17mo

You will receive the entire HRA.
If you opt for the old tax regime, then the HRA exempt from income tax is calculated based on a formula which has rent as a component.

MrWane
MrWane
Stealth17mo

Ask HR, maybe.

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