How should revised CTC be calculated when the target is total financial-year earnings? – Home Page

When a CTC revision is made effective from 01 August, the revised CTC is applied only for the remaining months of the financial year.

The system does not automatically consider the salary already paid from April to July and adjust the revised CTC to ensure that the employee's total FY earnings equal the required amount.

Therefore, if the requirement is for the employee's total FY earnings to be ₹13,00,000, ₹13,00,000 should not be entered directly as the revised CTC from August. The revised CTC must be calculated based on the salary already paid and the remaining months.

Calculation

Original Annual CTC = ₹10,00,000

Monthly CTC:

₹10,00,000 ÷ 12 = ₹83,333.33

Salary paid from April to July:

₹83,333.33 × 4 = ₹3,33,333.32

Required total FY earnings = ₹13,00,000

Balance required from August to March:

₹13,00,000 − ₹3,33,333.32 = ₹9,66,666.68

There are 8 months remaining from August to March.

Therefore, the revised CTC effective from August must be configured based on the required earnings for the remaining period.

Based on the applicable payroll outcome and salary structure, the revised CTC was configured as ₹14,58,200, effective 01 August 2026.