First salary: CTC to in-hand
Sample: Rahul, 25, first job in Hyderabad. ₹12.8 lakh CTC.
₹12.8 lakh CTC, ₹95,000 in hand
Why the offer letter number and the bank credit differ, and a simple split for the month.
From the offer letter to your bank
- CTC on the offer letter₹12,80,688
- Employer PF (not paid to you)less ₹57,600
- Gratuity (paid after 5 years)less ₹23,088
- Gross salary₹12,00,000
- Your PF, 12% of basicless ₹57,600
- Professional taxless ₹2,400
- Income tax (nil: rebate up to ₹12 lakh)₹0
- In hand, a year₹11,40,000
Lands in your bank each month₹95,000
Where it goes
- Rent, shared flat₹16,000 17%
- Sent home to parents₹10,000 11%
- Food and groceries₹12,000 13%
- Phone, internet, streaming₹2,000 2%
- Commute₹4,000 4%
- Weekends and shopping₹12,000 13%
- Health cover top up₹1,000 1%
- SIP₹10,000 11%
- Left at month end₹28,000
Three checks
Saving each monthOn track40%
SIP plus what is left, out of take-home. Rule of thumb: 20% or more.
EMIsComfortable0%
Share of take-home that goes to loans. Rule of thumb: under 20% is easy, above 40% is a strain.
Emergency fundBuild up1.1 months
Savings in bank and FD against a month of needs. Rule of thumb: 6 months.