A viral post by an IIT graduate reveals the reality of getting low in-hand salary despite a package of Rs 25 lakh. This highlights the huge gap between CTC and actual income due to deductions like tax, PF.
When an IIT-educated boy got a job with a package of Rs 25 lakh per annum (LPA), his happiness knew no bounds. But when the first salary came into the account, he was shocked. His salary was much less than expected. This viral post of the boy has now become a lesson for all those youth who get happy after seeing big job packages. This post has once again sparked a debate on the difference between Cost to Company (CTC) and in-hand salary.
After completing his studies from IIT, this graduate got a job at a handsome package of Rs 25 lakh per annum. But he was surprised when he got his first salary credit. Describing his situation, he wrote, “I thought the bank had made a mistake.” This line expresses the pain of thousands of new graduates who face salary cuts for the first time.
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According to her post, this difference between CTC and actual salary was due to various deductions which are often ignored during campus placements. These included income tax, provident fund (PF), gratuity, insurance and performance related incentives. All these things are part of the package, but do not come to hand in the form of cash every month.
This post quickly went viral on social media and thousands of users shared their similar experiences. Many professionals recalled how despite having a good job, they faced a similar shock when they got their first salary. The discussion also highlighted how big salary packages sometimes create wrong expectations in the minds of students starting out.
Many users praised the graduate for speaking openly about a topic that is rarely explained during recruitment. While others stressed the importance of understanding the salary structure before accepting a job offer.
This viral conversation has also sparked a big debate among young professionals about financial literacy. Experts say job seekers should carefully look at the salary breakup, which includes fixed pay, variable components, bonuses, stock options and legal deductions, to accurately estimate their earnings.
This experience of the IIT graduate is a reminder that while a larger CTC may look attractive on paper, the final amount reaching the employee’s bank account may be quite small. This experience of his has taught a great lesson to countless young professionals who are looking for their first job and understanding the reality of corporate salary.