Is your in-hand salary too low compared to your CTC?

Check the breakdown of your CTC (Cost To Company) in such a case. Employers lately have been resorting to giving 5 lac+ in the name of medical claims. This means that if your CTC is 10 lac, your actual salary is 5 lac only because medical claims are not provided in cash. However, this is not ethical on part of the company as your employer pays only the premium of such an insurance claim, not the whole amount.

This premium would not be more than Rs. 5000. Similarly, another component that gets added usually is the gratuity in the CTC. However, gratuity is payable only after an employee completes 5 continuous years of service (or 4 years and 6 months in certain cases). Hence it should not be a part of your CTC.

Unfortunately, CTC is not defined in any labour or employment law. That is why employers take the benefit of this loophole and amp up the CTC while your in-hand component is fairly less. Keep a lookout for your actual in-hand salary whenever you receive a job offer.