Dear All,
CTC includes Direct cost-
Basic Salary
PF employee 12 % on Basic +DA
And Indirect cost -
Mediclaim
Bonus
Gratuity
PF Employer 12 % on Basic +DA
My questions
1) Please specify " heads " comes undere CTC except above (Direct and indirect)
2) Please explain the example_
a)If Rs. 30,000/-p.m is CTC of any new joining employee in Electronics (Mfg Co.) , how we could biforcate the amount under different heads?
b) What will be his (Yearly) package?
4) How we can calculate the Gratuity?
means ( How we could guess the employee will continue up to or more than 5 yrs with the organisation?)
5) How we can calculate Bonus?
Shila
From India, Nagpur
CTC includes Direct cost-
Basic Salary
PF employee 12 % on Basic +DA
And Indirect cost -
Mediclaim
Bonus
Gratuity
PF Employer 12 % on Basic +DA
My questions
1) Please specify " heads " comes undere CTC except above (Direct and indirect)
2) Please explain the example_
a)If Rs. 30,000/-p.m is CTC of any new joining employee in Electronics (Mfg Co.) , how we could biforcate the amount under different heads?
b) What will be his (Yearly) package?
4) How we can calculate the Gratuity?
means ( How we could guess the employee will continue up to or more than 5 yrs with the organisation?)
5) How we can calculate Bonus?
Shila
From India, Nagpur
Shila,
Under CTC we have two "Heads". One is Gross Salary and the other is "Benefits". Gross Salary includes Basic, Dearness Allowance, House Rent Allowance, Conveyance Allowance, Children Education Allowance, Speical Allowance etc.,. Beneifts include, Employer PF contribution, Gratuity, Superannuation, Mediclaim Insurance premium, Lunch provided by the company, Incentive plans, Bonus etc..
Gratuity is calculated using the following formula. i.e 15/26* last drawn basic+DA*no of yrs of service. The company has to accrue funds every year and will pay the employee if he/she decides to leave and meet the criteria for payment of Gratuity
Bonus is calculated as 8.33% of Gross salary. Few companies have upper limits for payment of Bonus.
Regds
Draksh
Under CTC we have two "Heads". One is Gross Salary and the other is "Benefits". Gross Salary includes Basic, Dearness Allowance, House Rent Allowance, Conveyance Allowance, Children Education Allowance, Speical Allowance etc.,. Beneifts include, Employer PF contribution, Gratuity, Superannuation, Mediclaim Insurance premium, Lunch provided by the company, Incentive plans, Bonus etc..
Gratuity is calculated using the following formula. i.e 15/26* last drawn basic+DA*no of yrs of service. The company has to accrue funds every year and will pay the employee if he/she decides to leave and meet the criteria for payment of Gratuity
Bonus is calculated as 8.33% of Gross salary. Few companies have upper limits for payment of Bonus.
Regds
Draksh
Dear Shila, Bonus is always calculated with Basic+da not with Gross Normally % is 8.33 the rate will be differ n other companies Regards, Jayang Shah
From India, Ahmadabad
From India, Ahmadabad
Dear Shila,
CTC includes all expenses borne by the employer(both direct and indirect) towards an employee engaged under him.
Direct components: Basic, DA, HRA. TA, Meal Allowance, Spl All, Children Education allowance, Shift Allowance, CCA etc.This may add upto say 20000, which is your gross salary and will be reflected in your pay slip, less employees deduction like PF, ESI, P. Tax, I. Tax as well as other deductions like salary advance etc. which will give you your net salary.
Indirect components: Employer PF(12% of Basic + DA), Employer ESI(1.75%of Gross),
Gratuity(6% of basic + DA), Medical benefit for self and family, Bonus ( 8.33% of Basic+ DA), LTA, Leave(CL, PL, SL) which may add upto say another 10000 per month.
So the CTC comes to 30000 pm and 360000 per year.
Hope this helps you
Regards
From India, New Delhi
10CTC includes all expenses borne by the employer(both direct and indirect) towards an employee engaged under him.
Direct components: Basic, DA, HRA. TA, Meal Allowance, Spl All, Children Education allowance, Shift Allowance, CCA etc.This may add upto say 20000, which is your gross salary and will be reflected in your pay slip, less employees deduction like PF, ESI, P. Tax, I. Tax as well as other deductions like salary advance etc. which will give you your net salary.
Indirect components: Employer PF(12% of Basic + DA), Employer ESI(1.75%of Gross),
Gratuity(6% of basic + DA), Medical benefit for self and family, Bonus ( 8.33% of Basic+ DA), LTA, Leave(CL, PL, SL) which may add upto say another 10000 per month.
So the CTC comes to 30000 pm and 360000 per year.
Hope this helps you
Regards
From India, New Delhi
Dear Shila,
Suppose the salary is fixed as 20000 CTC, then the calculation is to be made as under;
Basic (40 to 50% of CTC) 10000
Hra (20% of basic) 2000
Transport Allow 800
Child Education 200 Deduction
Medical 1250 780 PF
Con. Allow 3504 200 PTGross 17554 980 Total Deduction
16574 TAKE HOME
Bonus (8.33% of Basic) 833
PF (12% of Basic/6500) 780
LTA (8.33% of Basic) 833
CTC 20000
If you want to add the Gratuity then you can take 6% of Basic + DA
Regards,
Jayang Shah
From India, Ahmadabad
Suppose the salary is fixed as 20000 CTC, then the calculation is to be made as under;
Basic (40 to 50% of CTC) 10000
Hra (20% of basic) 2000
Transport Allow 800
Child Education 200 Deduction
Medical 1250 780 PF
Con. Allow 3504 200 PTGross 17554 980 Total Deduction
16574 TAKE HOME
Bonus (8.33% of Basic) 833
PF (12% of Basic/6500) 780
LTA (8.33% of Basic) 833
CTC 20000
If you want to add the Gratuity then you can take 6% of Basic + DA
Regards,
Jayang Shah
From India, Ahmadabad
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SALARY SHEET CALCULATION.xls