Salary & compensation · Updated October 2026
A total rewards statement is a personalised yearly summary showing everything an employee receives from the employer, not just the salary that hits the bank: employer PF, gratuity accrual, insurance premiums, variable pay, equity and other benefits. Think of it as CTC explained line by line, plus the things CTC usually leaves out.
A typical statement for a salaried employee has four blocks:
An employee on Rs 12,00,000 fixed cash with basic of Rs 50,000 a month (Rs 6,00,000 a year). Figures for insurance and equity are illustrative.
| Item | Annual value |
|---|---|
| Fixed cash salary | Rs 12,00,000 |
| Employer PF, 12% of the Rs 25,000 wage ceiling | Rs 36,000 |
| Gratuity provision, 15/26 of one month’s basic (about 4.81% of annual basic) | Rs 28,846 |
| Group health insurance premium | Rs 15,000 |
| Target variable pay | Rs 1,20,000 |
| ESOPs vesting: 400 options x (Rs 250 fair value minus Rs 100 exercise price) | Rs 60,000 |
| Total rewards | Rs 14,59,846 |
If PF is paid on the full basic instead of the ceiling, that line becomes Rs 72,000. Label which basis you use, and mark equity as a notional value that depends on the share price.
No. Payslips and the TDS certificate are statutory; this statement is a voluntary communication tool. It should still match payroll exactly, because employees will compare it with their PF passbook and Form 16 (Form 130 for tax year 2026-27 onwards).
Show it as an accrual with a note on eligibility. Presenting it as money already earned misleads people who may leave before qualifying.
Just after the increment cycle, so the new pay and the full benefits cost appear together, or before retention conversations with key staff.
To show the gap between total rewards and take-home pay, pair the statement with the CTC to in-hand salary calculator.