Did You Know: Your Employer's PF Contribution Is Part of Your CTC But Never Reaches Your Bank Account?
Here's something most employees discover way too late:
Your CTC includes two PF contributions and neither one reaches your salary account.
Let's break it down with a real example.
Your CTC: ₹10,00,000/year Basic salary: ₹4,00,000/year (40% of CTC) What's happening Amount/year Your PF contribution (12% of basic)₹48,000- deducted from your gross Employer's PF contribution (12% of basic)₹48,000- added to CTC, goes to your PF account Total PF in your CTC₹96,000
That's ₹96,000 in your ₹10L CTC that never goes into your bank account.
On top of that, gratuity provision (roughly ₹23,000/year on this salary) is also part of your CTC and you only receive it if you stay for 5 continuous years.
So your "₹10 lakh CTC" might actually mean:
₹10,00,000 CTC
minus employer PF (₹48,000)
minus gratuity provision (₹23,000)
= ~₹9,29,000 gross salary
minus your PF deduction (₹48,000)
minus income tax (varies)
minus professional tax (₹2,400)
= ₹6.8L–₹7.2L in-hand per year
That's ₹57,000–₹60,000/month in hand. Not ₹83,333.
This isn't a scam. It's just how CTC is structured and most companies don't explain it clearly at the offer stage.
Know your real number before you negotiate. HRTailor.AI's salary calculator shows your complete CTC breakdown, exactly what reaches your account and what doesn't, in seconds.


















