Calculating Take-Home Salary at Infosys with a Fixed CTC of 5 LPA

When you're offered a position at Infosys with a fixed CTC (Cost To Company) of 5 Lakh per Annum (LPA), it's important to understand how this figure breaks down and what your take-home salary might be each month. Understanding the components of your CTC and how they impact your take-home pay is crucial for financial planning.

Understanding CTC Break-Up

The CTC, or Cost To Company, of 5 LPA can be broken down into several components. These components include:

Basic Salary: This is the core of your salary and forms the base upon which other allowances are calculated. For a CTC of 5 LPA, 50% would be the Basic Salary, which amounts to 2.5 LPA. HRA (House Rent Allowance): This is typically calculated as 40% of your Basic Salary. Hence, for a Basic Salary of 2.5 LPA, the HRA would be 1 LPA. Other Allowances: These can include various types of allowances such as DA (Dearness Allowance) and TA (Travel Allowance), which amount to 10% of your Basic Salary, or 0.25 LPA. Provident Fund: The contribution to the Employee PF is usually 12% of your Basic Salary, which equals 0.3 LPA.

Evaluating the Take-Home Salary

With the basic components understood, let's break down how to calculate your take-home salary. Assuming you are eligible for the new tax regime:

Standard Tax Slab Rates

Taxable Income: This is calculated as the sum of your Basic Salary and Other Allowances, which comes to 2.75 LPA. Income Tax: Assuming you fall within the tax slab for 2.75 LPA, the estimated Income Tax would be approximately 0.33 LPA.

With these figures in mind, the take-home salary can be calculated as follows:

CTC - PF Contribution - Income Tax / 12

5 LPA - 0.3 LPA - 0.33 LPA / 12

4.37 LPA / 12

Approximately 36400 per month

Key Takeaways

Average Take-Home Salary: Assuming you are eligible for the new tax regime, your average take-home salary would be around Rs. 37000 per month. Components: Your total take-home salary would be affected by factors like HRA, PF, and other allowances which together form your basic salary and other components. Deductible Amounts: Remember to deduct the monthly PF contributions, professional tax, Infosys welfare trust fund, and gratuity from your total salary.

It's also noteworthy that there is no variable component mentioned in the CTC, meaning that the monthly salary is fixed at 5 LPA. This can often be beneficial as it provides financial stability and predictability in terms of your take-home pay.

Final Thoughts

If Infosys offers a CTC of 5 LPA with no variable component, your take-home salary should range from Rs. 33000 to Rs. 38000, assuming standard deductions and allowances.

To further optimize your take-home salary, it's advisable to confirm with Infosys HR regarding tax exemptions and other financial benefits that might be applicable to you.