For a salary of ₹18,000, you will receive an in-hand salary of ₹16,600 to ₹16,900 based upon how the basic wage is calculated. Generally, companies consider 40-50% of gross wages as basic wage.
If your salary is mentioned as ₹18k CTC, you will receive less in hand salary than an employee whose salary is mentioned as just ₹18k, because in CTC both employee and employer PF contributions are also included.
Download Salary Slip for ₹18,000
In-Hand Salary Calculation for ₹18,000 Salary
| Per Month | Per Annum | |
|---|---|---|
| EARNINGS | ||
| Basic Wage (@ 45%) | 8100 | 97200 |
| House Rent Allowances (HRA) | 3240 | 38880 |
| Conveyance / Transport Allowances | 1600 | 19200 |
| Medical Allowances | 1250 | 15000 |
| Special Allowances | 3810 | 45720 |
| DEDUCTIONS | ||
| EPF | 972 | 11664 |
| ESI | 135 | 1620 |
| Professional Tax | 150 | 1800 |
| In Hand Salary | ₹16,743 | ₹2,00,916 |
In the above example, the basic wage is calculated at a rate of 45% of the gross salary of the employee, 45% of 18,000 is 8100. Companies take 40-50% of the basic wage on gross salary
House rent allowances (HRA) are calculated at 40% for non-metro cities, and 50% for metro cities like Delhi, Mumbai, Kolkata, and Chennai.
Conveyance and medical allowances are fixed rates.
EPF is calculated at 12% of the employee’s basic wage.
ESI is calculated at a rate of 0.75% on an employee’s basic wage.
Professional tax slab rates are different for each state, you should pay PT according to your state’s income tax slab limit.
Salary Breakup for ₹18,000 CTC per Month
| Per Month | Per Annum | |
|---|---|---|
| EARNINGS | ||
| Basic Wage (@ 45%) | 8100 | 97200 |
| House Rent Allowances (HRA) | 3240 | 38880 |
| Conveyance / Transport Allowances | 1600 | 19200 |
| Medical Allowances | 1250 | 15000 |
| Special Allowances | 3810 | 45720 |
| DEDUCTIONS | ||
| Employee’s PF Contribution | 972 | 11664 |
| Employer’s PF contribution | 972 | 11664 |
| Employee’s ESI Contribution | 135 | 1620 |
| Employer’s ESI Contribution | 585 | 7020 |
| Professional Tax | 150 | 1800 |
| In Hand Salary | ₹15,186 | ₹1,82,232 |
In CTC, both the employee’s and employer’s PF & ESI contributions will be deducted from the employee’s salary, that is why you will receive in-hand salary if the salary is stated as CTC. CTC stands for Cost to Company.
So always calculate your in-hand salary, before accepting salary in CTCs, and make a negotiation with the employer if you are not happy with your salary offer.
FAQs
It is ₹16,600 to ₹16,900.
It is a good salary to start with in non-metro cities if you are in the beginning stages of your career. Always focus on improving your skills, so that your income will also increase.
It will be around ₹850 to ₹1100 Rs. If your basic wage is high you will receive more PF amount, but your in-hand salary will decrease.
Yes, ESI will deduct for ₹18k salary. Employee contributes 0.75% and the employer contributes 3.25% on gross salary.
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