The sum of money that is included in an employee’s CTC package but is not included in their take-home pay is known as a deduction. Employers deduct it from employee compensation in the form of income tax, health insurance premiums, life insurance premiums, and so forth.
Only because of the deductions that are made does an employee’s net income&mdashalso known as their take-home pay&mdashdiffer from their gross wage.
In India, the most typical kinds of payroll deductions are:
Provident Fund (PF)
State Insurance Corporation for Employees (ESIC)
Fund for Professional Tax and Labor Welfare
