Dear All, Please Any one could tell me how to calculate ctc of an employee? Regards, Vishwanath Savula,
From India, Hyderabad
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19From India, Hyderabad
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Dear Vishwanath,
CTC stands for Cost to the Company, i.e., the total expenditure of the company towards a particular employee. It includes every cost in terms of money and materials. Some of the components are:
- Gross Salary
- Bonus
- PF Contribution from the employer's side
- ESI or Medical contribution from the employer's side
- Cell Phone Allowance
- Hard furnishing goods
- Food coupons, etc.
Hope this information helps to solve your query.
Regards,
Amit Seth.
From India, Ahmadabad
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CTC stands for Cost to the Company, i.e., the total expenditure of the company towards a particular employee. It includes every cost in terms of money and materials. Some of the components are:
- Gross Salary
- Bonus
- PF Contribution from the employer's side
- ESI or Medical contribution from the employer's side
- Cell Phone Allowance
- Hard furnishing goods
- Food coupons, etc.
Hope this information helps to solve your query.
Regards,
Amit Seth.
From India, Ahmadabad
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Though this is company-specific, the general rule followed is:
Basic Pay (Base pay + employer's contributions towards retirals: PF, Gratuity, Superannuation Fund) +
Allowances (all cash allowances like Housing, Medical, Conveyance, Education, etc.) +
Performance Pay (fixed or variable bonus, estimated value of ESOP) +
Any other cashable benefit (mobile phones, fuel charges, food coupons, etc.)
Hope this would help.
Cheers,
Sanjeeb
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Basic Pay (Base pay + employer's contributions towards retirals: PF, Gratuity, Superannuation Fund) +
Allowances (all cash allowances like Housing, Medical, Conveyance, Education, etc.) +
Performance Pay (fixed or variable bonus, estimated value of ESOP) +
Any other cashable benefit (mobile phones, fuel charges, food coupons, etc.)
Hope this would help.
Cheers,
Sanjeeb
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Hi Amit Can you send me the structure ( standard ) of calculating CTC. What is Adhoc Allowence Plz guide
From India, Kanpur
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From India, Kanpur
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I was questioned by an employee in my organisation weather do we get a loan on PF or Gratuity. Just needed to know. Regards Reena D’Silva
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Hi Reena,
Yes, it is in practice that one can get a loan over PF fund, but up to how much amount or what's the calculation to do so, that I am not confirmed. Even banks also provide the same, i.e., one can get a loan from banks also over his PF fund.
Regards,
Amit Seth
From India, Ahmadabad
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Yes, it is in practice that one can get a loan over PF fund, but up to how much amount or what's the calculation to do so, that I am not confirmed. Even banks also provide the same, i.e., one can get a loan from banks also over his PF fund.
Regards,
Amit Seth
From India, Ahmadabad
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Hi Sankara, Hi Nisha,
CTC stands for Cost to the Company, i.e., the total expenditure of the company towards a particular employee. It includes every cost in terms of money and materials. Some of the components are:
- Gross Salary
- Bonus
- PF Contribution from the employer's side
- ESI or Medical contribution from the employer's side
- Cell Phone Allowance
- Hard furnishing goods
- Food coupons
- Mobile recharge, etc.
I hope it is clear to you now. If you have any queries, feel free to ask.
Regards,
Amit Seth
From India, Ahmadabad
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CTC stands for Cost to the Company, i.e., the total expenditure of the company towards a particular employee. It includes every cost in terms of money and materials. Some of the components are:
- Gross Salary
- Bonus
- PF Contribution from the employer's side
- ESI or Medical contribution from the employer's side
- Cell Phone Allowance
- Hard furnishing goods
- Food coupons
- Mobile recharge, etc.
I hope it is clear to you now. If you have any queries, feel free to ask.
Regards,
Amit Seth
From India, Ahmadabad
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Dear Chandan,
CTC is calculated based on the following parameters:
- Gross Salary
- Bonus
- PF Contribution from the employer's side
- ESI or Medical contribution from the Employer's side
- Any Allowances
- Food coupons, etc.
- Canteen facilities
- Gratuity
- All reimbursable allowances
However, it varies from company to company depending on how the management perceives and which parameters they consider while calculating the recruitment budget.
Regards,
Chandan
From Japan, Tokyo
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CTC is calculated based on the following parameters:
- Gross Salary
- Bonus
- PF Contribution from the employer's side
- ESI or Medical contribution from the Employer's side
- Any Allowances
- Food coupons, etc.
- Canteen facilities
- Gratuity
- All reimbursable allowances
However, it varies from company to company depending on how the management perceives and which parameters they consider while calculating the recruitment budget.
Regards,
Chandan
From Japan, Tokyo
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Hi Sravani and Mamatha, I have send the details at your personal mail id which been specified over here, check your mail. Regards, Amit Seth.
From India, Ahmadabad
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From India, Ahmadabad
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Hi Sandeep,
CTC stands for Cost to the Company, i.e., the total expenditure of the company towards a particular employee. It includes each and every cost in terms of money and materials. Some of the components are:
- Gross Salary
- Bonus
- PF Contribution from the employer
- ESI or Medical contribution from the employer side
- Cell Phone Allowance
- Hard furnishing goods
- Food coupons
I have sent the details to your email as specified. Please check your mail.
Regards,
Amit Seth
From India, Ahmadabad
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CTC stands for Cost to the Company, i.e., the total expenditure of the company towards a particular employee. It includes each and every cost in terms of money and materials. Some of the components are:
- Gross Salary
- Bonus
- PF Contribution from the employer
- ESI or Medical contribution from the employer side
- Cell Phone Allowance
- Hard furnishing goods
- Food coupons
I have sent the details to your email as specified. Please check your mail.
Regards,
Amit Seth
From India, Ahmadabad
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hi well this was the exact picture of CTC for which i was also looking for. Thanx a ton...... :roll:
From India, Gurgaon
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From India, Gurgaon
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Dear Amit,
I have seen your answer to my query, and it's quite obvious. Could you let me know about PT (Professional Tax) calculation and the slab rates? Can I expect a standard format of CTC calculation along with PT? Please email me at vishwanathsavula@hotmail.com.
Thanks & Regards,
Vishwanath Savula
From India, Hyderabad
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I have seen your answer to my query, and it's quite obvious. Could you let me know about PT (Professional Tax) calculation and the slab rates? Can I expect a standard format of CTC calculation along with PT? Please email me at vishwanathsavula@hotmail.com.
Thanks & Regards,
Vishwanath Savula
From India, Hyderabad
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Hi, I have attached a salary breakup for your reference. I've fixed a slab of 30% as the basic of the Total CTC, which is a normal practice and advisable. HRA is 40% in case of non-metro and 50% in case of metro. You can change the basic to more than 30% as per your company's policy. Hope this will solve your problem.
Regards,
Bavani
From India, Madras
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Regards,
Bavani
From India, Madras
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Hi Reena,
Various types of advances are paid by EPFO. Please refer to http://epfindia.nic.in. Additionally, banks are considering accumulated PF contributions as part of the net worth when sanctioning loans.
Regards,
Prajagopa
From India
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Various types of advances are paid by EPFO. Please refer to http://epfindia.nic.in. Additionally, banks are considering accumulated PF contributions as part of the net worth when sanctioning loans.
Regards,
Prajagopa
From India
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Hi Atul,
The PF contribution is paid from the employer's side and not from the employee's salary. However, it is included in the CTC as this is the cost that the company bears towards employment. I hope this clarifies things for you.
Regards,
Amit Seth.
From India, Ahmadabad
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The PF contribution is paid from the employer's side and not from the employee's salary. However, it is included in the CTC as this is the cost that the company bears towards employment. I hope this clarifies things for you.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi Arjun, Myself Amit Seth itself.. And you could ask for the same with myself even.. Anyways check your mail, i have send the same at your ID that you have specified over here. Regards, Amit Seth.
From India, Ahmadabad
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From India, Ahmadabad
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Hi Tom & Liritta.. Check your mail.. have send teh desired document at the mails that you specified over here. Regards, Amit Seth.
From India, Ahmadabad
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From India, Ahmadabad
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How provident fund will deduct from Salary Employee contribution & Employer contribution both are deducted from Employee salary only or its different.
From India, Bangalore
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From India, Bangalore
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Hi Reena,
I hope that you have gathered some information about this. However, to add to your knowledge, there are provisions to take a loan from EPFO for reasons like self-marriage, purchase of a flat/plot, etc. All you have to do is fulfill conditions like a minimum service of 5 years. Eligibility varies depending on factors such as the amount, number of times his salary, etc.
Please visit the EPFO website for more information.
Prabhakara Nambiar
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I hope that you have gathered some information about this. However, to add to your knowledge, there are provisions to take a loan from EPFO for reasons like self-marriage, purchase of a flat/plot, etc. All you have to do is fulfill conditions like a minimum service of 5 years. Eligibility varies depending on factors such as the amount, number of times his salary, etc.
Please visit the EPFO website for more information.
Prabhakara Nambiar
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Hi Siva Kumari,
The PF contribution should be 12% from the employer and 12% from the employee's salary. The EPFO has set the upper limit to Rs 6,500/- as the amount for which 12% is to be deducted. However, the amount deducted varies from company to company. Some companies are willing to pay more from their account or have a basic salary of Rs 20,000/-, making the 12% amount to Rs 2,400/-. Therefore, it can be Rs 780/- or Rs 2,400/-. If the company opts for a higher basic salary, the cost to the company increases. For example, the CTC on PF is Rs 28,800/- as opposed to Rs 9,360/- per annum. The employer's 12% contribution towards PF is mandatorily deducted from the employee's salary.
Moreover, if the employee wishes to contribute more to their PF account, that option is also available, with a yearly bonus being accrued. Loans can also be availed on many occasions.
For more information, please visit the EPFO website.
Regards,
Prabhakaran Nambiar
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The PF contribution should be 12% from the employer and 12% from the employee's salary. The EPFO has set the upper limit to Rs 6,500/- as the amount for which 12% is to be deducted. However, the amount deducted varies from company to company. Some companies are willing to pay more from their account or have a basic salary of Rs 20,000/-, making the 12% amount to Rs 2,400/-. Therefore, it can be Rs 780/- or Rs 2,400/-. If the company opts for a higher basic salary, the cost to the company increases. For example, the CTC on PF is Rs 28,800/- as opposed to Rs 9,360/- per annum. The employer's 12% contribution towards PF is mandatorily deducted from the employee's salary.
Moreover, if the employee wishes to contribute more to their PF account, that option is also available, with a yearly bonus being accrued. Loans can also be availed on many occasions.
For more information, please visit the EPFO website.
Regards,
Prabhakaran Nambiar
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please find the attachement it will help you to set the CTC structure for your Employees you may add OR remove the heads as per your rrequirement Hope it will help you Enjoy Shashi Kant Upadhyay
From India, New Delhi
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From India, New Delhi
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Dear Reena,
Regarding the query about loans on Provident Fund (PF) or Gratuity within our organization, I would like to provide some clarification.
As far as I am aware, the Provident Fund organization allows loans to its subscribers after completion of five years. However, there has been a recent amendment where a three-year subscriber may also apply for a loan through PF Form 31.
Concerning gratuity, if your organization has made contributions towards a gratuity fund, partial payments of gratuity are possible, but not in the form of a loan.
Thank you for reaching out.
Best regards,
Dhananjay Singh
dhananjay.simmee@gmail.com
From India, Delhi
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Regarding the query about loans on Provident Fund (PF) or Gratuity within our organization, I would like to provide some clarification.
As far as I am aware, the Provident Fund organization allows loans to its subscribers after completion of five years. However, there has been a recent amendment where a three-year subscriber may also apply for a loan through PF Form 31.
Concerning gratuity, if your organization has made contributions towards a gratuity fund, partial payments of gratuity are possible, but not in the form of a loan.
Thank you for reaching out.
Best regards,
Dhananjay Singh
dhananjay.simmee@gmail.com
From India, Delhi
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EMPLOYEE SALARY INCOME TAX CALCULATION.xls x