Hi, I got a new offer in a mid-level company. My current CTC is 4.2, and I got an offer for 6 as CTC. However, my basic salary is lower when compared with my current employer. Please suggest whether I can accept this offer. I have attached my current payslip and the offered CTC for your reference.
My current employer's monthly CTC:
Earnings:
Basic: 17500
HRA: 7000
Conveyance: 1600
Medical Allowance: 1250
Special Allowance: 5600
Total Earnings: 32950.00
Deductions:
TDS: 0
EPF: 1800
ESI: 0
Profession Tax: 183
Total Deductions: 1983
Net Pay: 30967.00
Offered CTC per month:
Basic: 13000
HRA: 7800
Conveyance: 800
Medical Allowance: 1250
Special Allowance: 24726
Gross Salary: 47576
Statutory Benefits:
PF Employer Contribution: 1800
Gratuity: 624
Sub Total: 2424
CTC Total: 50000
From India, Chennai
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My current employer's monthly CTC:
Earnings:
Basic: 17500
HRA: 7000
Conveyance: 1600
Medical Allowance: 1250
Special Allowance: 5600
Total Earnings: 32950.00
Deductions:
TDS: 0
EPF: 1800
ESI: 0
Profession Tax: 183
Total Deductions: 1983
Net Pay: 30967.00
Offered CTC per month:
Basic: 13000
HRA: 7800
Conveyance: 800
Medical Allowance: 1250
Special Allowance: 24726
Gross Salary: 47576
Statutory Benefits:
PF Employer Contribution: 1800
Gratuity: 624
Sub Total: 2424
CTC Total: 50000
From India, Chennai
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Your in hand salary is higher in the new offer. You should look at the total earnings (i.e. what you get in hand). The basic component will not matter.
From India, New Delhi
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122From India, New Delhi
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The effect of both is the same, except for the increase in salary. The basic will be useful only to calculate the statutory calculation of PF, Bonus, and Gratuity. In your case, the P.F. is restricted to Rs. 15,000/- of basic in both cases. Gratuity is added as part of CTC - which is not normally included in CTC since it is only eligible if you have continuous service of 5 years in a company. If your salary, including basic + Da, is more than Rs. 15,000/-, you are out of the scope of the payment of the Bonus Act. Therefore, you can very well accept the offer even though the basic is less than in your previous employment.
From India, Bangalore
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From India, Bangalore
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The salary structure is classified into various categories for getting the tax exemption for HRA, which is based on basic and DA. Washing allowances are exempted. Calculate the statutory amounts like PF, Gratuity, etc., all are based on basic plus Dearness allowance only.
But lesser basic will give lesser tax benefit indirectly (i.e.) HRA exemption is based on 40% of basic and DA or actual HRA received or Rent paid less 10% of basic, whichever is less. If your actual HRA is more, but your basic is less, then there is a possibility of lesser tax exemption.
From India, Bangalore
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But lesser basic will give lesser tax benefit indirectly (i.e.) HRA exemption is based on 40% of basic and DA or actual HRA received or Rent paid less 10% of basic, whichever is less. If your actual HRA is more, but your basic is less, then there is a possibility of lesser tax exemption.
From India, Bangalore
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