1) Tell me a little about yourself.

I am one of the top graduates of my batch in College. I am known in school as

an organizer, having held several committees and organizations since my
first year. I am a dedicated person who never stops working on something
until it is perfect. It would be a pleasure for me to discuss how I can be such
an asset to your company.
2) Why do you want to work in this company?
This company is on the list of most admired companies every year. I want to
play a role in ensuring this company stays on that list. I want to be part of a
company that offers no less than quality in terms of products and after sales
services.
3) Do you consider yourself successful?
Yes. During my ___ year career, I have learned to set goals and to make sure I
meet each of it. I make sure obstacles do not hinder me from reaching my
goals, but instead should inspire me to exert more. I believe the new position
I am applying for will enable me to reach up higher and be more successful.
4) Are you willing to travel?
Yes. I love traveling. Adjusting in new places and meeting new people would
be a delightful experience for me.
5) What are your salary expectations?
As of now, I havent thought much about it. Im more focused on learning the
requirements for this position that I am applying for.
6) What would you consider your greatest strengths?
Im a highly motivated person. I dont stop until I get things done. I value
other peoples time and companys resources. I work to become an asset, not
a liability.
7) What would you consider your greatest weakness?
People say I sometimes act too much as a perfectionist. To counter this, I
attended seminars that teach me how to manage myself well.
8 ) What motivates you?
Many things motivate me. My goal to be the best of what I can be often
motivates me to go beyond my own expectations. When I see myself being
productive everyday, it motivates me to continue.
9) Tell me about your dream job.

The only dream job Ive always had was a job that keeps me busy, a job
wherein I get to contribute to the companys success.
10) Why did you leave your last job?
I left my previous job because I feel I want to do more, to get hold of a
greater opportunity to serve.
11) What experience do you have in this field?
I have created several systems that are still in used to this day. Some of the
systems Im proud include [mention those remarkable ones]
12) What do co-workers say about you?
My co-worker [name] at [company] never gets tired of telling other people
how brilliant I am when it comes to [specific task].
13) Why should we hire you?
As I have said earlier, my years of experience in this field is something that
can truly contribute to this companys success. My sense of dedication in
every task that I handle is definitely a big plus. I believe my skills and work
attitude measures up to your company standards.
14) Are you a team player?
Yes, definitely. While I will deny the fact that I can work independently with
minimal supervision, Im also one companion every leader would ever wanted
to be in his team. Whatever task is assigned to me, I make sure it meets and
exceeds what is expected of me. I also make it a point to reach out to
teammates whenever needed.
15) What is your philosophy towards work?
I have only one philosophy when it comes to work: every piece of work,
regardless of size, has to be done on time and in the right manner.
16) What have you learned from mistakes on the job?
I learned that without proper coordination, even the simplest task could
cause problems in a project. I had this problem during my first job. From that
time on, I made sure every I thing follows every detail and coordination.

17) Describe your management style.

Basically, my management style comes with promptness and flexibility. To
make sure goals are achieved, I religiously study and make plans down to the
smallest detail. While I do implement a strict sense of being time bounded, I
also add reasonable allowances and make room for contingencies.
18) How would you know you were successful on this job?
Being successful means goals that are set are met. Being successful also
means standards are not only reach, but also even exceeded wherever
possible.
19) Are you willing to work overtime? Nights? Weekends?
I understand that being asked to work for an extended number of hours
comes with a good reason in the first place, so Im ok with it. It an extra effort
means something for the company, Ill be happy to do it.
20) What will you do if you dont get this position?
I have high hopes that I will be hired. In case it turns the other way around, I
would have to move on and search for another job.
21) What have you done to improve your knowledge in the last year?
I have attended in several self-improvement, time management and
personality development seminars. I have also participated in training
workshops related to [industry].
22) How you would be an asset to this company?
My skills in [] are outstanding. I have earned a lot of awards and
certifications from my past employers. As an employee, I handle pressure
with ease and can work with minimal supervision.
23) How long would you expect to work for us in case you are hired?
As much as possible I would like to be in this company for a long time. For as
long as management sees me as an asset, I am willing to stay.
24) Describe your ability to work under pressure.
I understand the nature of this position that I am applying for quite well,
along with the pressure that comes with it. Being under pressure doesnt
discourage me, it motivates me more.

25) Tell me about a problem you had with a supervisor.

Im sorry but I cant recall any instance when I had such a problem with a
supervisor.
26) Why do you think you would do well at this job?
Because, I love this job. I feel very confident of myself and my ability to
delivery nothing short of quality output. My years of experience helped me
develop these skills.
27) What irritates you about co-workers?
I always get along fine with my co-workers. I tend to be open minded and
very considerate.
28) Do your skills match this job or another job more closely?
I feel my skills are best fit for this job.
29) What has disappointed you about a job?
I once felt that I was not being given enough challenges to work on. I was a
bit disappointed because I was so eager to go for more.
30) If you were hiring a person for this job, what would you look for?
I would look into two essential things: the ability to do the job right and the
proper attitude to do it. Skills without the right attitude will not contribute to
a productive output.
31) What role do you tend to play in a team?
I tend to be versatile when it comes to being a team player. I can act as a
leader, an assistant, a communicator, a secretary, whatever role that will
ensure the success of the team. Thats because understanding the different
roles will allow each player to take on the roll of the other in times of need.

32) What was the most difficult decision for you made?
It was a time when I had to choose between joining a group of employees
protesting some issues in the company, and staying away from the issue. I
ended up being a mediator between the employees and our immediate
supervisor, and I was glad I made that decision because it all ended well and
without further conflicts in the work place.
33) Are you willing to make sacrifices for this company?
I would be willing to do that to the best of my ability. I can manage personal
matters on my own without causing conflicts when management needs me
most. However, I will not comprise on my values.
34) What qualities do you look for in a boss?
I look into my boss as a person who can easily relate with me, can make firm
decisions, and is transparent. A boss with a sense of humor would also be a
delightful idea.
35) Are you applying in other companies as well?
Yes. I have submitted my applications in some of the best companies like
[.]. Above all, my priority and hope is that I be able to land a job in your
company.
36) Do you know anyone who works in our company?
No. I found your ads in a popular job posting website.
37) How do you propose to compensate for your lack of experience?
I am a quick learner. Every time there is something new to me, I take time to
study it at the soonest time.
38) Have you ever worked in a job that you hated?
Not exactly hated. I once had a job that does not exactly match my
qualification. Nevertheless, I was glad I took the job because it was an
opportunity to learn something new and added to my list of experience.
39) What would your previous supervisor say your strongest point
is?
Some of my strongest points at work are being hardworking, patient and a
quick learner.
40) What is the most difficult thing about working with you?
My co-workers often say Im too serious about my work. However, I have
attended some personality enhancing seminars to blend better with coleagues.
41) What suggestion/s have you made in your previous employment
that was implemented?

I once suggested that management and staff should have more regular
meetings instead of quarterly meetings. I was happy that management took
note of this and even commended me for making a good initiative.
42) Would you rather be liked or feared?
I would like to be liked, but more importantly, I would prefer to be respected.
Being feared does not necessarily command respect.
43) How do you cope with stress?
I pause for a few minutes, look out into the window. Brief pauses in enough to
get me charged again. I can manage stress well enough and does not
decrease my productivity level.
44) Would you rather work for money or job satisfaction?
Job satisfaction is more important for me. Working just for the money may not
be fulfilling if I dont like the job in the first place. Job satisfaction makes me
stay productive; money would naturally come along well.
45) Describe your work ethics.
Always give your best in every job, if not, dont do it at all.
46) What was your biggest challenge with your previous boss?
My previous boss was very strict when it came to deadlines and output. It
was a challenge for me to meet every expectation he made. It was also a
good learning experience for me because it only made me better at what I
do.
47) Do you enjoy working as part of a team?
Yes, I enjoy it very much. Being part of a team means you get to contribute
for the good of all, while at the same time theres are members who can
support you and share more knowledge with you.
48) Why should we hire you?
Because I believe my talents and skills will definitely be a big contribution to
your companys continuing pursuit of excellence. Im a fast worker and
hardworking person who can be very reliable asset to this company.
49) Has anything ever irritated you about people youve worked
with?
I go along fine with co-workers. When I feel the other guys attitude is a
negative one, I try my best to approach him and talk things over. I always
make it a point to stay positive and transparent with people around me.
50) Do you have any questions for me?
I would like to know what are the next step is for me. I would also be
interested to know more about the details of this position I am applying for.

Q: Do you have any questions for me?

Almost every experienced interviewer leaves some time towards the end to ask this question. Remember the first
time an interviewer asked you that. They most likely made a very nice impression on you. How nice and
accommodating of them, you must have thought. Turns out, theres more to it. So far, you were judged by the
answers you gave. Now you are going to be judged by the questions you ask!

The point is that very few candidates tend to ask good, relevant questions. And like we pointed out on our
previous post (Tell me something about yourself), most candidates just dont take enough advantage of such
opportunities to lead an interview and make an impression. The most common question that candidates tend to
ask is How did I do with the interview?. Guess what, the interview wasnt over yet!
The second most common question candidates ask is What is your job profile?. That actually may be a good
question, if you can make use of it. Most candidates arent listening to the answer, they are just glad that it isnt
them answering. So when the interviewer completes narrating their job, they just say Okay or Sound
interesting. Ideally, you ought to listen carefully and pick something that you want to go deeper in.
For example, you are interviewing for the post of a Software Quality Assurance Engineer and you are
interviewing with a Senior engineer of the group. This may be a good time to figure out what
testing methodologies they use, what tools they use. Ask why they dont use this latest methodology, that tool,
how much effort do they put on automating the test cases. How do they measure how much software code was
covered by their testing.
This is also a good time to ask questions to gauge company culture. If you are talking to a Quality Assurance
Manager, you can ask probably ask them How does management react if a quality assurance
engineer unintentionally missed a check? or How does one get rewarded by going beyond the test cases and
finding a genuine issue with the product?

Best Answer to Tell me something about

yourself question

Q. Tell me something about yourself OR Tell us a little about yourself

Table 1 good hat

Most interviews start with the interviewer saying Tell me something about yourself. The intention usually is to
make the candidate comfortable, because s(he) now has to answer something that s(he) already knows, and
there is no wrong answer. This is a great opportunity to tell a story about yourself, set the context for the
interview, and above all make that first impression.
Most candidates however tend to do a bad job with the question. Unless you are a charming conversationalist,
you probably cant whip up something meaningful on the spot. The formal setting of an interview can be
intimidating. Most engineers and scientists tend to be asocial. Most people are just plain uncomfortable talking
about themselves to strangers. The best you can (and should) do is to prepare the answer to this question in
advance.
Most people tend to summarize their background or their resume. That is not the best thing to do, the interviewer
already has your resume. This is your chance to lead the interview. Leading the interview means getting the
interviewer to ask you questions which you want him to ask you. A better approach is to characterize yourself,
your qualities, your skills. you can also mention your last job and how that qualifies you for this one. Consider
using terms and phrases to describe themselves. Ninja, Hustler, Technopreneur.
Since there is no wrong answer you can go with any of these or something of your own. But, whatever you pick,
rest assured that the next line of questioning is going to be in that area. More often than not, successful
candidates manage to lead the interviewer into asking them about their strong areas, rather than their weak
areas.
Most interviews go from 30 to 45 minutes per interviewer. And most likely the first question you get will be Tell
me something about yourself. This is your first opportunity to lead the interview. Dont waste the opportunity by
saying something terse or just mentioning your degree or something close-ended. Pick your best area, tell a
story, but keep it open-ended. With some luck, youll spend the first 15-20 minutes on Q&A in that area. Thats

33% to 50% of your interview focused on your strengths, and that much less time for the interviewer to dig up on
your weakness.

How to Negotiate Salary for your Job

What are your salary expectations? Sounds like an easy question right? Not really this question could make
or break your chances of a landing a job with the company you are interviewing with depending on how and
when you answer this question. This post covers pitfalls and pointers around this critical but delicate subject.
As a candidate your goal is to land an offer with the highest salary you can receive with this company given your
skill-sets and their ability to pay you. Keeping that in mind, it is in your best interest to answer this question as
late in the hiring process as possible. If you answer this question during the HR pre-screening round or before
the hiring manager realizes the value you can bring to them, you run the risk of being screened out because of
seemingly high and unreal salary expectations. Alternately, if you have quoted a lower figure in the beginning,
you literally limit the maximum salary the company can offer you since going back on your words and asking for a
higher package than you asked for earlier puts a question mark on your integrity.
Here are a 5 tips to help you in your salary negotiations:
1. Find out existing salaries in that company
The moment you apply to a company, use sites like Zuby.in or your contacts in that company to get a rough idea
of how much others with your skills and experience are getting paid in that company. You never know when the
HR person will call. Do not put salary expectations on your resume. It is the last place you should write about
your expectations and portrays a negative image of you.
When the HR person calls you the first time for a prescreener, they will try to ask you for your current and
expected salary figures. You can tell them your current salary that will give them an indication of whether you
are too expensive or not. When they ask for your expected salary, try to avoid giving a direct answer. Some of the
responses you can give them are I would want to discuss this during my interview after I get a clearer picture of
my job profile and responsibilities, I would prefer to discuss this in person, I dont think I have a figure in my
mind right now, once I understand the job role better, I can give you a clear answer. Some HRs are very
persistent, if they still insist inspite of you giving the answers, then give them a range or a % hike value e.g. If
your expected salary is 8 lakhs, you can tell them I cant give you an exact figure now, but I am looking for
something in the range of 7-9 lakhs per annum. You can also say I am looking for a raise of 20-40% over my
existing salary.

2. Leave the salary discussion for the end of the interview

During the interview, try to leave the salary discussion for the later part of the interview after you have given the
interviewer a chance to judge your skills. You can use the same I can tell you my expectations after I get a

clearer picture of my job profile and responsibilities. So can you tell me a little more about the growth
opportunities in this role. The main advantage this approach has is that you can quote a figure based on how
your interview went. If you think your interview went well then you can quote the figure on the higher end of your
expectation. If youre interview went bad, then you may want to quote a lower expectation. Whenever you quote
a figure, ensure you quote 15-20% more than you expect to get.finally. That way you also leave room for
downward negotiation from the HR. Remember, at times its the HRs mandate and also their ego to negotiate a
little on your expected salary.

3. Understand what part of the salary you will actually get

Remember that salary contains many components not all of which will be paid out to you. Components like
medical insurance premium, gratuity, amount spent on training etc are tactics used by companies to bloat your
CTC (cost to company). Be careful about variable pay also some companies state the maximum possible
variable bonus in your CTC, whereas the average payout is usually only 30% of the maximum bonus. Ensure you
consider the average payout as part of your salary. Stock options add further complexity to the salary
computation. This article on the Z Blog contains more information about Stock Options. You need to filter out
these factors and then calculate your pre-tax annual income and use this figure as your decision making factor.
Some genuine components of your pay are
1.

Basic Pay

2.

House Rent Allowance (HRA)

3.

Leave Travel Allowance (LTA)

4.

Transport Allowance

5.

Medical Allowance

6.

Special / Other Allowance

7.

Telephone / Broadband Allowance

8.

Petrol Allowance

4. Negotiate on Salary after receiving the offer

Sometimes, you may get an offer lower than the expectation you told the company. In many cases, you directly
get an offer after the technical round without being asked the expected salary. If this offer is lower than what you
were expecting, then you need to negotiate carefully. Contact the HR by phone or email and tell them that you
like the position and are keen on working for the company but you are concerned since the compensation offered
is not aligned with your expectations. At this point, if they really think you are good, they may call you for a round
of salary negotiations or they may tell you that they have already offered you the maximum they can afford. If you
have done your homework and feel that they do pay others more than they are offering you, then you can decline
the offer politely mentioning that you will be happy to reconsider if they are willing to review the compensation
offered. Remember that this does pose a risk of the HR not giving you a renewed offer and you losing the chance
to get the job. You need to take your actions and decision based on your risk-taking ability and your perception of
how important the company thinks you are to them.

5. Job profile, growth and company culture are also important

Lastly remember that salary is not everything. It is an important factor, but should never be The Only Factor. If
the job profile and position, the reputation of the company and the opportunities for growth and development are
good, consider making a compromise on the salary, since in the long term, your growth will result in the increase
of your compensation as well. Loads of people making the mistake of going for a job with fewer growth
opportunities because it offers a slightly higher salary, only to realize that 5 years down the line, they have
actually lost out in the salary race.

The Salary Negotiation Secret To Get

You The Biggest Pay Hik
Radsund Started The Discussion:
The Largest Raises You'll Likely Ever Get In Your Career Are A
Result Of Your Quitting Your Current Job And Going To Work For
Another Employer. At Least That's True If You Learn The Strategies
Necessary To Negotiate Your Salary And Benefits. And, You Must
Learn To Avoid The Minefield Of Mistakes Common To Most OverEager Applicants.
A Key Concept To Learn Is This: Whoever Mentions Money First
Loses. That Means If The Employer Asks You To Mail In A Salary
History (One Quarter Of Employers Do) You Need To Simply Ignore
This Request. Employers Admit That They Use The Salary Question
As A Device To Screen Out Applicants. While You Worry That The
Employer Won't Offer Pay High Enough, In Reality, Oftentimes,
Employers Eliminate You Because Your Previous Salary Was Too
Low, Thus Automatically Downgrading Your Skills. Nothing
Illustrates This More Clearly Than What Happened To Kathy, One Of
My Clients.
Kathy, Who Spent Several Years At A Large Prominent Company,
Kept Taking On New Managerial Duties As Her Job Expanded. She
Excelled, But Her Requests To Upgrade Her Salary Seemed To Get
Lost Behind Other Items Her Boss Found More Important. When
She Left On Maternity Leave She Just Never Went Back To That
Company. Two Years Later She Decided She Wanted To Return To
Work. In An Early Interview Kathy Made The Mistake Of Telling The

Hiring Manager Her Previous Salary. A Friend Inside The

Interviewing Organization Later Told Her That Once The Hiring
Manager Heard The Low Figure Her Last Employer Had Paid Her,
He Devalued Her Skills, Deeming Them Lower Than The Level He
Needed. It Cost Her The Job. Too Late, Kathy Learned That The
Best Salary Negotiation Technique Is To Never Reveal A Previous
Salary. She Never Made That Mistake Again. A Few Weeks Later,
She Masterfully Dodged The Salary Questions When Interviewing
With A Prestigious High-Tech Company. Coupled With Good
Answers To Interview Questions And Solid Work Examples, Kathy
Landed The Job That Brought Her A 45% Increase In Pay Over The
Job She Left Behind.
Of Course Some People Know They Are Underpaid And Aren't Sure
How To Negotiate. James Had An MBA And Wanted To Get
Promoted But His Company Had A Salary Freeze. His Worked Was
Praised And He Got New Job Titles, But No Raises Came His Way.
He Got Fed Up And Became A Recent Client Of Mine. He Was
Motivated To Get A Better Paying Job. We Created A Resume That
Promoted His Accomplishments And Rehearsed How To Deal With
Salary Questions. An International Marketing Job Caught His Eye,
And He Was Well Prepared For The Interview. He Wrote To Say, "My
Interviews Went So Well, I Know They Truly Liked What They Saw.
Using The Work Examples As Props And Adopting A
Conversational Approach Was A Real Hit. I Also Followed Your
Advice On Salary, Didn't Disclose A Thing."
He Got Hired, And Wrote Again To Say, "I Am Really Loving It Here,
And Growth Opportunities Are Everywhere. I Just Got My First
Paycheck, And WOW It's One BIG Paycheck. Just Wanted To Say
Thanks Again; This Is More Money Than I Ever Dreamed I'd Make."
Everyone Should Be Paid A Salary Commensurate With His Or Her
True Value. There Are Three Cardinal Rules To All Salary

Negotiations That You Must Master So That You Can Enjoy A More
Prosperous Future.
Rule #1 -- Never Reveal Your Previous Salary.
Rule #2 -- Never Break Rule #1.
Rule #3 -- Never EVER Break Rule #1.
Why? Whoever Mentions Money First Loses, So Don't Let It Be You.
This "Secret" Preserves Your Negotiating Power! Once The
Employer Decides They Want To Hire You They Are More Motivated
To Pay Whatever It Takes To Entice You To Join The Team.
My Advice Is TRY To Negotiate! Many Applicants Simply Accept
The Offer As Given. Too Bad -- Because In The Last Few Months
I've Seen Employers Offer Higher Salaries And More Lucrative
Benefits Packages, Simply Because The Prospective Employee
Asked For Them.
Member Opinions In This Discussion
Www.4resumeformat.in
India, Sasaram
Founder & Owner

Just.nids
India, New Delhi
Human Resource- Business Learning

Lizancy
Australia, Adelaide
General Hr, Mysap Erp Hcm,hays Job Evaluation,

Bahubali
India, Mumbai

Hr Professional

Radsund
India, Bangalore
Service

Kirthijaggi

Soft Skills Trainer

Jaswinder Singh
Hr Manager

+1 Other

BAHUBALI

Good to read, But How far it is practical in India, where employer insist
employee to reveal the salary. Professional organization have a well defined
salary structure and an experienced HR professional can easily judge your
market value. Over Exaggeration can lose you the opportunity be very careful.
JUST.NIDS

Hi,

That was really a good piece of knowledge that you have provided with.
Presently i am looking for a change and that will surely help me in gaining the
high package. but i have a question to ask

"Q. What if when the consultant calls then they ask for package, then i this
case what could be the answer"? ( they ask what is the current CTC then
what'?

Q. When in Personnel interview What should i say related to Expected Salary

if they ask me, Because it sometimes happen the opportunity is good but fail
because one has demanded more salary...?

I am working as a Hr Executive and looking for a change in my profile and

presently i am getting 1.68lac P.A in hand and i am demanding 2.5 lac or 3.0
so, and i have normally 1.5 years of work exp in Corporate world.I am planning
a change in big MNC?

is it incorrect to mention the Present CTC and Expected CTC on the resume?

The phrase "Cost to Company" or CTC, as it is commonly known, means different figures to different
people.
-For the Company, Cost to company is a term which essentially implies the amount of expenses the
company will spend on an employee in a particular year. What may be an expense for the company need
not necessarily be salary for the employee.
-For employees, Cost to company is an amount projected by the company as salary but is never what
is actually received by the employee in cash.
-For the Finance Manager it is the total cost incurred to hire, maintain, retain the employees and may
also include a part of overhead cost allocation.

Recruitement Cost

Base salary

Bonuses

Administrative

Office Space

Technology

Benefits

Components of CTC

Salary like Basic, DA, HRA, Allowances

Perquisites and Reimbursements given to employees (i.e.) - bonus, incentives, reimbursement of

conveyance/medical/telephone/, benefits extended through various schemes like housing/vehicle/furniture/ Air-conditioners etc.

Contributions that the company makes for the employees like PF, Super Annuation, Gratuity, Medical Insurance, etc.

Reasonable estimates of Leave Encashment, Stock Option Plans and Non cash concessions

Tax Benefit on Stock Option plans only.

Difference Between CTC & Take Home Salary

And for most people it is plain confusion! This confusion prevails even now amongst the older employees. Most of us do not understand
that there is a big difference between the follwing.

CTC

Gross salary

Net salary (Take Home Salary)

Cost to company (CTC) is the total cost that an employee is incurring in a company. Gross Salary is the one which you see every
month. But this is before any deduction.Net Salary is what an employee get to his/her hand after deductions.(this is the take home
salary)
The relation between all three

Gross = CTC - Other benefits

Net = Gross - Deductions

While switching jobs, people end up thinking that a hike on CTC as shown on the offer letter will increase the in-hand salary, But there
are various components of the CTC that affect your in-hand salary.Some of these components inflate your CTC but you do
not get them as a part of your monthly pay.
1.

Basic Salary: Basic salary is a fixed part of your compensation structure and the complete amount becomes a part of your inhand salary.

2.

Allowances: Apart from the basic salary, there are some allowances that your CTC will contain. Examples include HRA,
conveyance allowance, leave travel allowance. Some of these allowances are tax free up to a certain limit and some of them are
dependant on your actual spending.

3.

Caims: A part of your salary may also be made up of your billed claims. These include components like mobile allowance,
medical allowance etc. There is a maximum limit set to these components and are paid when you submit your bills. These are
usually tax free.

4.

Deductions: A major part of your CTC comprises of compulsory deductibles. These include deductions for provident fund,
medical insurance etc. They form a part of your compensation structure but you not get them as a part of your inhand salary. As such, although it increases your CTC, it does not increment your net salary.

5.

Performance linked pay: Linking a part of the salary to productivity and performance has become a trend today. You get the
complete amount only on 100% achievement of target, but it forms a part of your CTC, fattening it up.

6.

Taxes: Taxescause further leaks in your salary.Taxes are an unavoidable evil and they eat up a large chunk of your salary. Taxes
are obviously never mentioned in your offer letter.

When you receive a good offer, consider all these components separately and understand the impact they will have on your in-hand
salary before deciding to take up that alluring offer. Also ensure that you have calculated your tax liabilities with the new income in
accordance with the tax policies to figure out the amount you will receive in your pay cheque.

You are here:HomeYour Money

Difference Between CTC and

Take Home Salary Explained
BankBazaar.com | Last Updated: May 17, 2015 16:18 (IST)

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Ankit Sharma, 22, an engineering graduate, was happy as he got placement through
campus interview and was offered a salary package of Rs 3.6 lakh annual CTC (cost
to company). From the first day, he started planning how he wanted to spend his first
salary. But his excitement was dimished when he received the much-awaited pay
slip.
Before joining a workforce, many generally have a misconception that the actual take
home salary is same as CTC. But in reality, there is huge difference between the
two.
Why CTC is different from pay slip
When Ankit rechecked the details he found that there are many components in CTC
which he won't receive. The HR department at his new office gave him the break up
and said that his maximum entitled limit was only Rs 22,491 a month where
according to the CTC offered, he thought it would be Rs 30,150. It was explained to
him that the employer's contribution to provident fund was part of the CTC but not of
his salary.
The same logic is applicable for the company's contribution towards employees'
medical insurance as well.

Income tax and professional tax also got deducted from Ankit's CTC. He would get
Rs 22,491 only if he touched the maximum limit of overtime and upon submission of
medical bills worth Rs 15,000.
Break-up of CTC and tax liability is given below:
Component of Amoun Taxable
salary
t (Rs.) amount
Basic salary

2,40,00
2,40,000
0

House rent
allowance

60,000

36,000

Conveyance
allowance

8,000

Entertainment
allowance

6,000

6,000

Overtime
allowance

6,000

6,000

Medical
10,000
Reimbursements

Gross salary

3,30,00 2,88,00
0
0

Medical
insurance

3,000

PF (12% of basic
28,800
salary)
Total benefit

31,800

CTC = gross
salary +
benefit

3,61,80
0

Break up of take home salary:

Deductions/take home
salary

Amou
nt

Deductions/take home
salary

Amou
nt

Employee provident fund

(12% of basic salary)

28,800

Professional tax

2,500

Total deduction

60,100

Gross salary

3,30,0
00

Net salary (gross deduction)

2,69,9
00

Monthly take home salary

22,491

Components of salary
Basic salary: Basic salary is the core salary and it is the fixed part of the
compensation package. A number of other components are calculated in the basic
salary. Generally, the basic salary depends upon the employee's designation or
grade.
Allowance: Different types of allowance is given to employees such as house rent
allowance (HRA), leave travel allowance (LTA), dearness allowance, convince
allowance, city compensation allowance and children's education allowance.
Perquisites: It is basically different facilities such as rent free accommodations, car
facility, interest subsidy on loan, reimbursement on medical bills and club facility.
Contribution to provident fund: Contribution to the provident fund is mandatory for
Indian companies. Twelve per cent of the basic salary gets contributed from the
employee for PF and another 12 per cent by the employer. So 24 per cent of the
basic salary gets deducted.
Reimbursement: Sometimes employees are entitled to many reimbursements such
as medical treatment, newspaper, phone bill etc. One would not get the money in
salary but funds will be passed against submission of such bills. So these are not
included to the monthly pay slip. Most of the cases, an upper limit is there for each
category.

Life and health insurance: New joinees get excited when they come to know that
their organisation is taking care of them and paying the premium of their life and
health insurance. But in reality, it is included in the CTC.
Transport facility: Getting a car from office may sound really good but actually,
transport facility or pick-and-drop facility is also a component of the package. The
interest-free car loans are not actually free.
Subsidised meals: It is true that really there is no free lunch. Free lunch, subsidised
meals from office canteen, food coupons even the tea or coffee come with a price
tag to the employee.
Rent of the office space: It is surprising but true that sometimes the rent of office
space (the space in the employee's cabin) is borne by the employee in his CTC.
Making the most of your CTC
One has to understand the basic difference CTC and take home salary:
CTC = Direct benefits + indirect benefits + saving contributions
Whereas,
Take Home Salary = Direct benefits - employee PF - other deductions if any - income
tax
While negotiating with a new employer, one should try to increase the direct benefit
part of CTC. For instance, if an organisation is offering transportation, which is an
indirect benefit, the employee should try to get it as conveyance allowance which is a
direct benefit. Negotiation can be done to convert the subsidised meals to food
allowance again to convert indirect benefit to direct benefit
Many organisations offer ESI benefits for employee's health. But there are only few
ESI (Employee's State Insurance) hospitals where the facility is available. If the
employee is offered medical reimbursement, it benefits him more. One can also ask
for family health insurance and medical reimbursement instead of the employee
alone. Even if the total coverage or the maximum limit of reimbursement is the same
for individual or family, it will minimise expenditure.
House rent allowance gives some tax rebate. Up to a certain limit, conveyance
allowance is tax free. So this is a must-include in the compensation package instead

of a pick-and-drop facility. Before accepting an offer from the new employer, you
should try to know the company policy. The tax liability of allowances and perquisites
vary from one company to another.
Conclusion
Take home salary can also be increased with the help of proper tax planning. If a
person invests Rs 1.5 lakh in tax saving instruments under Section 80C such as
PPF, Equity-Linked Saving Scheme (ELSS) etc., then he/she can save tax. Although
this would not alter the CTC, the take home salary will be increased.