Deductions

Deductions are the portion of an employee’s CTC that never actually shows up in their take-home pay, money an employer withholds for things like income tax, health insurance premiums, or life insurance premiums.

That gap between gross salary and net (or take-home) salary exists entirely because of these deductions. Some of the most common ones include:

• Provident Fund (PF)
• Employee’s State Insurance Corporation (ESIC)
• Professional Tax
• Labour Welfare Fund