I wanted to hire people on CTC basis. However, I don't have a specific salary structure that I am supposed to include in the offer letter or salary slip.
I would like to request help in determining a suitable salary structure or tool that can assist me. Additionally, I am seeking information on how components such as PF, HRA, and TA are typically calculated.
From India, New Delhi
Acknowledge(0)
Amend(0)
I would like to request help in determining a suitable salary structure or tool that can assist me. Additionally, I am seeking information on how components such as PF, HRA, and TA are typically calculated.
From India, New Delhi
Acknowledge(0)Amend(0)
Hi Jaisal,
In order to start the CTC complete process, you should first register with PF and ESI departments. CTC is the total cost to the company, which includes all the statutory benefits provided to an employee. First, you need to decide if you are providing any additional benefits apart from the take-home salary to the employee. If yes, you need to calculate the gross salary of an employee, which is employee contributions + PT + take-home.
Employee contributions include PF and ESI. Professional tax (PT) is mandatory on a total salary of 15000 and above, which is 200 Rs. ESI is mandatory if you have more than 10 employees and if the gross salary is less than 21000 Rs. PF is mandatory if the basic salary is less than 15000 Rs and if you have more than 20 employees.
CTC Structure:
Find out the gross salary, excluding employer contributions like PF, ESI, and insurance from CTC, which gives you the Gross Salary. Gross Salary includes Net Salary + Employee contributions like PF, ESI, PT, etc. Net Salary is the take-home salary.
Salary Structure:
Basic Salary: 35-60% of gross salary.
DA can be merged with basic or you don't have to show DA in your package.
ESI: 1.75% of gross for Employee contribution and 4.75% for the employer contribution.
PF: 12% of basic salary for the employee and 13% for the Employer.
HRA is 40 to 80% of Basic Salary.
TA can be up to 1900, and medical allowance can be up to 1250 as per exemption. Rest you can show it as other allowance or special allowance.
Hope this helps :)
Regards,
Sunil Kumar
Proprietor
Dbrightspeir Consultancy
sunil@dbrightspeir.com
From India, Bengaluru
Acknowledge(0)Amend(0)
2In order to start the CTC complete process, you should first register with PF and ESI departments. CTC is the total cost to the company, which includes all the statutory benefits provided to an employee. First, you need to decide if you are providing any additional benefits apart from the take-home salary to the employee. If yes, you need to calculate the gross salary of an employee, which is employee contributions + PT + take-home.
Employee contributions include PF and ESI. Professional tax (PT) is mandatory on a total salary of 15000 and above, which is 200 Rs. ESI is mandatory if you have more than 10 employees and if the gross salary is less than 21000 Rs. PF is mandatory if the basic salary is less than 15000 Rs and if you have more than 20 employees.
CTC Structure:
Find out the gross salary, excluding employer contributions like PF, ESI, and insurance from CTC, which gives you the Gross Salary. Gross Salary includes Net Salary + Employee contributions like PF, ESI, PT, etc. Net Salary is the take-home salary.
Salary Structure:
Basic Salary: 35-60% of gross salary.
DA can be merged with basic or you don't have to show DA in your package.
ESI: 1.75% of gross for Employee contribution and 4.75% for the employer contribution.
PF: 12% of basic salary for the employee and 13% for the Employer.
HRA is 40 to 80% of Basic Salary.
TA can be up to 1900, and medical allowance can be up to 1250 as per exemption. Rest you can show it as other allowance or special allowance.
Hope this helps :)
Regards,
Sunil Kumar
Proprietor
Dbrightspeir Consultancy
sunil@dbrightspeir.com
From India, Bengaluru
Acknowledge(0)Amend(0)
Hi, Mr. Sunil Kumar,
Great information shared. Could you please guide on how TA and medical allowance are determined? Is there a specific calculation like with HRA/PF, or is TA/MA decided by the company's internal policy based on the candidate's grade level?
Thanks and Regards,
Akash Sharma
From India, Delhi
Acknowledge(0)Amend(0)
Great information shared. Could you please guide on how TA and medical allowance are determined? Is there a specific calculation like with HRA/PF, or is TA/MA decided by the company's internal policy based on the candidate's grade level?
Thanks and Regards,
Akash Sharma
From India, Delhi
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.
Payroll Process .doc
Payroll process.ppt
Payroll Process Dashboard sample.xls