An query on CTC

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CA Parul Saxena (Querist)
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21 July 2022 Monthly salary- 53000 (yearly=53000*12=636000
Children Education Allowance- 26500 (Received in Mar)
Yearly Bonus- 53000 (Received in Aug)
Total in hand Salary=636000+26500+53000=715500 (715500/12=59625 p.m.)
Gratuity will be received as and when i will leave=Rs.3 Lakhs
My question is in the interview what is the CTC to be told to them=Rs.7.2 or Rs.10 Lakhs?
What is the monthly take home i have to say Rs.53k or Rs.59K?
When it is asked why your salary is so low after so many years what should be the reply?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 In your scenario, here's how you can approach the questions typically asked in interviews about your salary:

1. **CTC to Be Told**: CTC (Cost to Company) includes all components of your compensation package, including salary, allowances, bonuses, and benefits like gratuity. Based on the information provided:
- Your annual salary (including bonus) is Rs. 7,15,500.
- Adding gratuity (Rs. 3 lakhs), your total annual compensation would be Rs. 10,15,500.

Therefore, when asked about CTC, you should mention Rs. 10 lakhs per annum.

2. **Monthly Take Home**: Take home salary is what you actually receive after deductions such as taxes, provident fund, etc. Based on your calculations:
- Your monthly in-hand salary is Rs. 59,625.
- If asked for monthly take-home, you should mention Rs. 59,000 approximately, rounding it off for simplicity.

3. **Explaining Low Salary After Experience**: If asked why your salary seems low given your years of experience, you can explain this based on factors like:
- Industry or company-specific salary structures.
- Emphasis on non-monetary benefits (like gratuity or other benefits).
- Focus on career growth, skills development, or other non-financial aspects that are important to you.
- Highlight any recent achievements, certifications, or added responsibilities that showcase your value beyond salary alone.

It's important to present this in a positive light, emphasizing how you prioritize factors beyond just salary in your career decisions.

By preparing clear and factual responses to these questions, you can present yourself effectively during interviews, highlighting both your compensation and the broader value you bring to potential employers.