Hi,
I am Harika, and I am working as an HR executive. I am currently facing a problem with salary calculation. My superiors provide me with the employee's take-home pay, and I need to determine both the gross salary and the CTC. It is challenging for me to figure this out. Please help me with this issue.
From India, Chennai
Acknowledge(0)
Amend(0)
I am Harika, and I am working as an HR executive. I am currently facing a problem with salary calculation. My superiors provide me with the employee's take-home pay, and I need to determine both the gross salary and the CTC. It is challenging for me to figure this out. Please help me with this issue.
From India, Chennai
Acknowledge(0)Amend(0)
Hi Harika,
We have attached the CTC calculator herewith for your reference. You can enter the salary details in the yellow highlighted cells, and the calculator will automatically show the net take-home salary, gross, and CTC.
Two important things need to be updated from your end:
- PT slab as per the applicability in your TN location needs to be input by you in the calculator.
- GPA insurance premium cost per employee, if any, needs to be input by you in the calculator.
If you need any clarification, please contact us.
Thanks.
From India, Bengaluru
Acknowledge(0)Amend(0)
8We have attached the CTC calculator herewith for your reference. You can enter the salary details in the yellow highlighted cells, and the calculator will automatically show the net take-home salary, gross, and CTC.
Two important things need to be updated from your end:
- PT slab as per the applicability in your TN location needs to be input by you in the calculator.
- GPA insurance premium cost per employee, if any, needs to be input by you in the calculator.
If you need any clarification, please contact us.
Thanks.
From India, Bengaluru
Acknowledge(0)Amend(0)
Dear Sunihaji,
1. Components of Cost to Company (CTC):
- CTC is basically the sum total of Direct Benefits (sum paid to an employee on a yearly basis), Indirect Benefits (sum the employer pays on behalf of the employee), and Saving Contributions (saving schemes the employee is entitled to).
CTC = Direct Benefits + Indirect Benefits + Savings Contributions
A) DIRECT BENEFITS
- Basic Salary
-Dearness Allowance (DA)
-Conveyance Allowance
-House Rent Allowance (HRA)
-Medical Allowance
-Leave Travel Allowance (LTA)
-Vehicle Allowance
-Telephone/ Mobile Phone Allowance
-Incentives or bonuses
-Special Allowance/ City Compensatory allowance, etc.
B) INDIRECT BENEFITS
- Interest Free Loans
- Food Coupons/Subsidized meals
- Company Leased Accommodation
-Medical and Life Insurance premiums paid by employer
-Income Tax Savings
-Office Space Rent
C) SAVINGS CONTRIBUTION
-Superannuation benefits
- Employer Provident Fund (EPF)
-Gratuity
### Let’s elucidate what CTC looks like with an example:
Mr. A has been hired by a company at a CTC of Rs.4, 00,000. A breakdown of his yearly income is illustrated below:
Basic Salary: Rs.2, 20,000
HRA: Rs.88, 000
CA: Rs.19, 200
Medical Expenses: Rs.15, 000
EPF Contributions: Rs.21, 600 (@12%
Gratuity: Rs.18, 326
Special Allowance: Rs.17, 874
2. Gross Salary:
Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before deduction of taxes or other deductions and is inclusive of bonuses, over-time pay, holiday pay, and other differentials.
### For the same example listed above, let’s deduce Mr. A yearly salary by subtracting gratuity and Employee Provident Fund contributions.
Rs.4, 00,000 - Rs.21, 600 - Rs.18, 326 = Rs.3, 60,074
This amount will now be considered as his gross salary, which is his total personal income before taking taxes and other deductions into consideration.
3. Net Salary or Take-Home Salary:
-Net salary, more commonly known as Take-Home Salary, is the income that the employee actually takes home once tax and other such deductions are carried over with. It refers to the in-hand figure that is calculated after deducting Income Tax at source (TDS) and other deductions as per the relevant company policy.
-Net Salary is Income Tax deductions, Public Provident Fund, and Professional Tax subtracted from gross salary, which means,
Net Salary = Gross Salary (-) Income Tax (-) Public Provident Fund (-) Professional Tax
*** Employee Provident Fund are a stipulated percentage of the employee’s salary, typically no less than 12% of the basic salary. Whereas, gratuity is a percentage of the basic salary, typically 4.81% of the employee’s basic salary.
### Mr. A’s Salary Example:
In Mr. A’s case, he comes under the 10% tax slab as his salary falls between the Rs. 2,50,001- Rs. 5,00,000 range.
Mr. A’s income stands at Rs.3, 60,074.
10% of Mr. A’s income would come up to Rs.36, 007.4.
So, Mr. A’s income after tax and other deductions would be Rs.3, 24,066.6
For more details share your e-mail.
I hope It will be helpful in CTC Designing.
Regards,
Amit
From India, Surat
Acknowledge(0)Amend(0)
1. Components of Cost to Company (CTC):
- CTC is basically the sum total of Direct Benefits (sum paid to an employee on a yearly basis), Indirect Benefits (sum the employer pays on behalf of the employee), and Saving Contributions (saving schemes the employee is entitled to).
CTC = Direct Benefits + Indirect Benefits + Savings Contributions
A) DIRECT BENEFITS
- Basic Salary
-Dearness Allowance (DA)
-Conveyance Allowance
-House Rent Allowance (HRA)
-Medical Allowance
-Leave Travel Allowance (LTA)
-Vehicle Allowance
-Telephone/ Mobile Phone Allowance
-Incentives or bonuses
-Special Allowance/ City Compensatory allowance, etc.
B) INDIRECT BENEFITS
- Interest Free Loans
- Food Coupons/Subsidized meals
- Company Leased Accommodation
-Medical and Life Insurance premiums paid by employer
-Income Tax Savings
-Office Space Rent
C) SAVINGS CONTRIBUTION
-Superannuation benefits
- Employer Provident Fund (EPF)
-Gratuity
### Let’s elucidate what CTC looks like with an example:
Mr. A has been hired by a company at a CTC of Rs.4, 00,000. A breakdown of his yearly income is illustrated below:
Basic Salary: Rs.2, 20,000
HRA: Rs.88, 000
CA: Rs.19, 200
Medical Expenses: Rs.15, 000
EPF Contributions: Rs.21, 600 (@12%
Gratuity: Rs.18, 326
Special Allowance: Rs.17, 874
2. Gross Salary:
Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before deduction of taxes or other deductions and is inclusive of bonuses, over-time pay, holiday pay, and other differentials.
### For the same example listed above, let’s deduce Mr. A yearly salary by subtracting gratuity and Employee Provident Fund contributions.
Rs.4, 00,000 - Rs.21, 600 - Rs.18, 326 = Rs.3, 60,074
This amount will now be considered as his gross salary, which is his total personal income before taking taxes and other deductions into consideration.
3. Net Salary or Take-Home Salary:
-Net salary, more commonly known as Take-Home Salary, is the income that the employee actually takes home once tax and other such deductions are carried over with. It refers to the in-hand figure that is calculated after deducting Income Tax at source (TDS) and other deductions as per the relevant company policy.
-Net Salary is Income Tax deductions, Public Provident Fund, and Professional Tax subtracted from gross salary, which means,
Net Salary = Gross Salary (-) Income Tax (-) Public Provident Fund (-) Professional Tax
*** Employee Provident Fund are a stipulated percentage of the employee’s salary, typically no less than 12% of the basic salary. Whereas, gratuity is a percentage of the basic salary, typically 4.81% of the employee’s basic salary.
### Mr. A’s Salary Example:
In Mr. A’s case, he comes under the 10% tax slab as his salary falls between the Rs. 2,50,001- Rs. 5,00,000 range.
Mr. A’s income stands at Rs.3, 60,074.
10% of Mr. A’s income would come up to Rs.36, 007.4.
So, Mr. A’s income after tax and other deductions would be Rs.3, 24,066.6
For more details share your e-mail.
I hope It will be helpful in CTC Designing.
Regards,
Amit
From India, Surat
Acknowledge(0)Amend(0)
Post by AMIT AISHWARY CHOUDHARY 4 Click on follow to get recommendations from amit aishwary choudhary +Follow @Message is correct
From India, Kolkata
Acknowledge(0)Amend(0)
From India, Kolkata
Acknowledge(0)Amend(0)
Hi Harika,
Firstly, why should your superior make you find the gross/CTC by giving you the net pay? It would have been okay if it were the other way around. The deductions and the breakup are purely based on the compensation structured in your organization.
At CONNECTONE DYNAMIC, the attachment is not generic. It might help in understanding your organization's breakup.
From India, Bangalore
Acknowledge(0)Amend(0)
Firstly, why should your superior make you find the gross/CTC by giving you the net pay? It would have been okay if it were the other way around. The deductions and the breakup are purely based on the compensation structured in your organization.
At CONNECTONE DYNAMIC, the attachment is not generic. It might help in understanding your organization's breakup.
From India, Bangalore
Acknowledge(0)Amend(0)
Adding to the above comments, please check with your boss about the standard deductions (statutory, employee welfare, etc.) applicable as per your company policy. Every company has a different salary structure and deduction heads; therefore, there is no universal format applicable to all.
Over and above, the theoretical concept explained above by my friends is self-explanatory. Trust it will resolve your queries now.
Neelima
HR, Pune
Acknowledge(0)Amend(0)
Over and above, the theoretical concept explained above by my friends is self-explanatory. Trust it will resolve your queries now.
Neelima
HR, Pune
Acknowledge(0)Amend(0)
Hi Harika,
It is advisable to consider using an online Payroll Management system. This will help you to:
1. Set salary components along with their formulas, such as Basic, HRS, LTA allowances, etc.
2. Define salary structures for each designation type.
3. Obtain automated component values based on the total CTC you are offering a candidate.
4. Run payroll in 4 simple steps.
5. Issue Payslips online via email.
6. Collect IT declarations and investment proofs.
For more details, simply create a FREE Sign-up on FastCollab. Our team will train your team on how to proceed.
[FastCollab | Marketplace | All-In-One Platform](http://www.fastcollab.com)
From India, Hyderabad
Acknowledge(0)Amend(0)
It is advisable to consider using an online Payroll Management system. This will help you to:
1. Set salary components along with their formulas, such as Basic, HRS, LTA allowances, etc.
2. Define salary structures for each designation type.
3. Obtain automated component values based on the total CTC you are offering a candidate.
4. Run payroll in 4 simple steps.
5. Issue Payslips online via email.
6. Collect IT declarations and investment proofs.
For more details, simply create a FREE Sign-up on FastCollab. Our team will train your team on how to proceed.
[FastCollab | Marketplace | All-In-One Platform](http://www.fastcollab.com)
From India, Hyderabad
Acknowledge(0)Amend(0)
Hello Harika, please find attached ctc calculation format for your kind reference.
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
Hi, I am Srinath, and I am working as a Field Engineer. Here, I am facing a problem with salary calculation. My superiors tell me that my salary is 9000, but I am taking home only 6790 monthly. I need help in finding out the gross and the CTC. It is very challenging for me to figure out; please assist me with this.
From India, undefined
Acknowledge(0)Amend(0)
From India, undefined
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Calculate Your Age.xls
Guidelines to Calculate the Net Worth of Human Capital.pdf