IIT Roorkee graduate reveals reality of Rs 25 lakh CTC after getting his first salary
An IIT Roorkee graduate said his first post-MBA salary was far lower than his Rs 25 lakh CTC suggested. His post prompted wider discussion on how deductions, employer contributions and variable pay shape take-home salary.
An Indian Institute of Technology graduate shared how he was left checking his bank balance multiple times after receiving his first salary post-MBA, only to realise that the Rs 25 lakh annual package mentioned in his offer letter translated to a much smaller amount in his account.
Siddharth Maheshwari, an IIT Roorkee graduate and Indian School of Business alumnus, shared the video on Instagram, where the display text read: "I am 35. IIT Roorkee. ISB. AVP. ISB ke baad pehli salary aayi, mujhe laga bank ne ghalti ki hai."
In the caption accompanying the video, Maheshwari recalled how his offer letter quoted a Rs 25 lakh per annum CTC. However, when his first salary arrived, only around Rs 1.45 lakh had been credited to his account.
According to him, he checked his balance repeatedly, convinced that the bank had made an error. He later realised that the discrepancy was not due to the bank, but because of how compensation packages are structured.
Breaking down the numbers, Maheshwari explained that while the monthly CTC came to over Rs 2 lakh, the actual gross salary was around Rs 1.7 lakh. After deductions including provident fund contributions, professional tax and income tax, his take-home salary came down to roughly Rs 1.4 lakh.
He further pointed out that a sizeable chunk of the CTC consists of components that employees do not receive as cash every month, including the employer's provident fund contribution, gratuity, health insurance and variable pay, which depends on company performance and is not guaranteed.
Maheshwari also shared the tax calculations under the new regime for FY 2026-27 and highlighted three lessons he wished someone had told him earlier. He advised job seekers not to focus solely on the annual CTC figure and instead ask companies for the actual monthly in-hand salary after taxes and deductions.
"CTC marketing number hai. In-hand number woh hai jo EMI bharta hai," he wrote.
Take a look at the post here:
His post sparked discussion online, with many users saying they had experienced similar surprises after landing high-paying jobs.
Several people admitted that the annual CTC figure often creates unrealistic expectations and argued that fresh graduates and MBA students should be educated about the difference between gross salary and take-home pay before accepting offers.
Others shared that variable pay and employer contributions are frequently misunderstood, with some saying that the only figure that truly matters is the amount that reaches the bank account every month.
Many also agreed with Maheshwari's advice to ask recruiters directly about monthly in-hand compensation rather than getting swayed by impressive-looking annual packages, noting that EMIs and day-to-day expenses are paid from the salary credited each month, not from the CTC mentioned on paper.
An Indian Institute of Technology graduate shared how he was left checking his bank balance multiple times after receiving his first salary post-MBA, only to realise that the Rs 25 lakh annual package mentioned in his offer letter translated to a much smaller amount in his account.
Siddharth Maheshwari, an IIT Roorkee graduate and Indian School of Business alumnus, shared the video on Instagram, where the display text read: "I am 35. IIT Roorkee. ISB. AVP. ISB ke baad pehli salary aayi, mujhe laga bank ne ghalti ki hai."
In the caption accompanying the video, Maheshwari recalled how his offer letter quoted a Rs 25 lakh per annum CTC. However, when his first salary arrived, only around Rs 1.45 lakh had been credited to his account.
According to him, he checked his balance repeatedly, convinced that the bank had made an error. He later realised that the discrepancy was not due to the bank, but because of how compensation packages are structured.
Breaking down the numbers, Maheshwari explained that while the monthly CTC came to over Rs 2 lakh, the actual gross salary was around Rs 1.7 lakh. After deductions including provident fund contributions, professional tax and income tax, his take-home salary came down to roughly Rs 1.4 lakh.
He further pointed out that a sizeable chunk of the CTC consists of components that employees do not receive as cash every month, including the employer's provident fund contribution, gratuity, health insurance and variable pay, which depends on company performance and is not guaranteed.
Maheshwari also shared the tax calculations under the new regime for FY 2026-27 and highlighted three lessons he wished someone had told him earlier. He advised job seekers not to focus solely on the annual CTC figure and instead ask companies for the actual monthly in-hand salary after taxes and deductions.
"CTC marketing number hai. In-hand number woh hai jo EMI bharta hai," he wrote.
Take a look at the post here:
His post sparked discussion online, with many users saying they had experienced similar surprises after landing high-paying jobs.
Several people admitted that the annual CTC figure often creates unrealistic expectations and argued that fresh graduates and MBA students should be educated about the difference between gross salary and take-home pay before accepting offers.
Others shared that variable pay and employer contributions are frequently misunderstood, with some saying that the only figure that truly matters is the amount that reaches the bank account every month.
Many also agreed with Maheshwari's advice to ask recruiters directly about monthly in-hand compensation rather than getting swayed by impressive-looking annual packages, noting that EMIs and day-to-day expenses are paid from the salary credited each month, not from the CTC mentioned on paper.
