Respected Seniors,
I have gone through many posts regarding the percentage of basic salary in CTC. Some said it is between 20 to 40%, some said 45%, and somewhere I saw 51.63%. Is there a fixed percentage that exists or does it depend upon company policies? I am a bit confused.
Sandeep Singh Bhati
HR Executive
7737901700
From India, Delhi
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1I have gone through many posts regarding the percentage of basic salary in CTC. Some said it is between 20 to 40%, some said 45%, and somewhere I saw 51.63%. Is there a fixed percentage that exists or does it depend upon company policies? I am a bit confused.
Sandeep Singh Bhati
HR Executive
7737901700
From India, Delhi
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There should be no confusion about the basic component of a CTC. The basic component is not governed by any regulation except that it should not be lower than the minimum wages declared by the government.
I have had organizations give 80% basic and some even 30%. It all depends on the company policy and the salary structure that they follow.
Cheers
From India, Delhi
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I have had organizations give 80% basic and some even 30%. It all depends on the company policy and the salary structure that they follow.
Cheers
From India, Delhi
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Respected Seniors,
Actually, I am a total fresher in HR. I want to know how PF, ESI, and gross salary are calculated. Please guide me with some example formats. Also, provide me with information about Professional Tax. What is City compensatory allowance?
Regards,
Sujata
From India, Bhubaneswar
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Actually, I am a total fresher in HR. I want to know how PF, ESI, and gross salary are calculated. Please guide me with some example formats. Also, provide me with information about Professional Tax. What is City compensatory allowance?
Regards,
Sujata
From India, Bhubaneswar
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Dear All,
Can anyone tell me how to get feedback (interview) from top management? I have sent emails, but received no reply. Additionally, there has been no response on Skype or Google Talk. Could you suggest how to obtain feedback from top management?
Regards,
Jags.
From India, Visakhapatnam
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Can anyone tell me how to get feedback (interview) from top management? I have sent emails, but received no reply. Additionally, there has been no response on Skype or Google Talk. Could you suggest how to obtain feedback from top management?
Regards,
Jags.
From India, Visakhapatnam
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@ Jags,
Why are you seeking an interview with the top management? What is the purpose? What email have you sent to them? If you can tell us, then maybe, just maybe we could be of some help to you. But here is my opinion on this generic question: Should you try to contact your top management for feedback? Are you confusing feedback with complaints? In your attempt to be heard, are you becoming an irritant? Think, analyze, and then react.
Cheers!!!
From India, Delhi
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Why are you seeking an interview with the top management? What is the purpose? What email have you sent to them? If you can tell us, then maybe, just maybe we could be of some help to you. But here is my opinion on this generic question: Should you try to contact your top management for feedback? Are you confusing feedback with complaints? In your attempt to be heard, are you becoming an irritant? Think, analyze, and then react.
Cheers!!!
From India, Delhi
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Hi Sujatha,
PF is 12% from the employee's side and 12% from the employer's side. Out of the 12% from the employee's contribution, 3.67% goes to his EPF, and 8.67% goes to his EPS account. PF 12% is calculated based on his/her basic salary, which in turn is calculated in his/her gross salary. The percentage of the basic salary depends on the company's policy.
ESI totals 6.50%, with the employee contributing 1.75% and the employer contributing 4.75%. ESI is calculated based on his/her gross salary.
Thanks & Regards,
Valan
From India, Madras
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PF is 12% from the employee's side and 12% from the employer's side. Out of the 12% from the employee's contribution, 3.67% goes to his EPF, and 8.67% goes to his EPS account. PF 12% is calculated based on his/her basic salary, which in turn is calculated in his/her gross salary. The percentage of the basic salary depends on the company's policy.
ESI totals 6.50%, with the employee contributing 1.75% and the employer contributing 4.75%. ESI is calculated based on his/her gross salary.
Thanks & Regards,
Valan
From India, Madras
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Hi Sujata,
PF is 12% from the employee side and 12% from the employer side. From the 12% employee contribution, 3.67% goes to the EPF, and 8.67% goes to the EPS account. PF 12% is calculated on his/her basic salary, and the basic salary is calculated in his/her gross salary. The basic salary percentage depends on the company policy.
ESI is a total of 6.50%, with the employee contributing 1.75% and the employer contributing 4.75%. ESI is calculated in his/her gross salary.
Thanks & Regards,
Valan
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From India, Madras
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PF is 12% from the employee side and 12% from the employer side. From the 12% employee contribution, 3.67% goes to the EPF, and 8.67% goes to the EPS account. PF 12% is calculated on his/her basic salary, and the basic salary is calculated in his/her gross salary. The basic salary percentage depends on the company policy.
ESI is a total of 6.50%, with the employee contributing 1.75% and the employer contributing 4.75%. ESI is calculated in his/her gross salary.
Thanks & Regards,
Valan
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From India, Madras
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Dear sir, Is it any particular rules for basic fixation or it is depends on the company policy...?
From India, Bangalore
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From India, Bangalore
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Dear Sandeep,
The ideal ratio is 40% Basic and 60% Allowances. Employers keep the basic salary at a minimum for various purposes, such as indirect benefits (PF, ESIC), bonuses, gratuity, and increments. It is always advisable to allocate a higher percentage to allowances, as properly named allowances can provide income tax benefits.
Regards,
Rahul Bagale
From Korea
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The ideal ratio is 40% Basic and 60% Allowances. Employers keep the basic salary at a minimum for various purposes, such as indirect benefits (PF, ESIC), bonuses, gratuity, and increments. It is always advisable to allocate a higher percentage to allowances, as properly named allowances can provide income tax benefits.
Regards,
Rahul Bagale
From Korea
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Dear Sandeep,
Generally, if you have a PF component that is 12% of the basic salary, then it is ideal to have 40% of the CTC as Basic. However, if the company is not enrolled for PF deduction for employees, then you can consider keeping a higher basic but not more than 50% of the CTC, keeping the legal and compliance angle in mind.
Best Regards,
Bhushan
From India, Mumbai
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Generally, if you have a PF component that is 12% of the basic salary, then it is ideal to have 40% of the CTC as Basic. However, if the company is not enrolled for PF deduction for employees, then you can consider keeping a higher basic but not more than 50% of the CTC, keeping the legal and compliance angle in mind.
Best Regards,
Bhushan
From India, Mumbai
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