Hi,
Recently its discovered by husband that he is being paid less than 2 lacs of what he is being promised for and what is shown in the paper. This we came to know when the scrutiny went on by one of the credit card company.
So, few doubts cropped up in my mind.
1. What is CTC.
2. If I am told that my package will be say 5 lacs/annum, then that is inclusive of the gross and the annual benefits??
3. If the Employer PF contribution should be 12% of basic, what will be shown in the annual salary (the pf contribution only or the pension contribution also..)?
I will be really relieved if I can get the clarification in this regard.
Thanking the community in advance.
Regards
Recently its discovered by husband that he is being paid less than 2 lacs of what he is being promised for and what is shown in the paper. This we came to know when the scrutiny went on by one of the credit card company.
So, few doubts cropped up in my mind.
1. What is CTC.
2. If I am told that my package will be say 5 lacs/annum, then that is inclusive of the gross and the annual benefits??
3. If the Employer PF contribution should be 12% of basic, what will be shown in the annual salary (the pf contribution only or the pension contribution also..)?
I will be really relieved if I can get the clarification in this regard.
Thanking the community in advance.
Regards
CTC is Cost To Company. How much the company would spend annually on the employee.
It is the gross income and includes all allowances and benefits. The salary break up sheet should give you a better picture of how much the net income or take-home would be.
All reimbursements have to be claimed and are not shown in salary slip for tax purposes.
The salary slip includes net deductions also.That should help you to understand how much has been deducted.
From India
2It is the gross income and includes all allowances and benefits. The salary break up sheet should give you a better picture of how much the net income or take-home would be.
All reimbursements have to be claimed and are not shown in salary slip for tax purposes.
The salary slip includes net deductions also.That should help you to understand how much has been deducted.
From India
Hi Vinod,
Its true that here all HR professionals interact.Everyone is learning trying to gain from this group.and if you can share your understanding on this topic it would be great for all of us.
Thanks and Regards
Anuradha Singh
From India, Gurgaon
Its true that here all HR professionals interact.Everyone is learning trying to gain from this group.and if you can share your understanding on this topic it would be great for all of us.
Thanks and Regards
Anuradha Singh
From India, Gurgaon
Vinod,
One becomes a professional after much experience and learning. All of us start form scratch and build our knowledge. Every field has its own ABCs which we must learn in order to proceed towards the so called 'professional' status.
If we at Cite HR do not encourage and welcome doubts and queries, however simple they might be, we would be unfit to be called members of the HR fraternity.
Knowledge is all about sharing .
If a non HR person feels his/her doubts can be cleared by members of this cite, we should take it up to help him/her . This might encourage them to enhance their knowledge in HR.
And yeah,please dont forget that there was a time when even you wouldnt have been aware of this simple term 'CTC'. If we keep our questions to ourselves thinking how kiddish they are, we would never be able to succeed.
I request you and other similar minded people not to dissuade members from sharing their doubts/queries. We are all here to help each other grow.
Cheers
From India
One becomes a professional after much experience and learning. All of us start form scratch and build our knowledge. Every field has its own ABCs which we must learn in order to proceed towards the so called 'professional' status.
If we at Cite HR do not encourage and welcome doubts and queries, however simple they might be, we would be unfit to be called members of the HR fraternity.
Knowledge is all about sharing .
If a non HR person feels his/her doubts can be cleared by members of this cite, we should take it up to help him/her . This might encourage them to enhance their knowledge in HR.
And yeah,please dont forget that there was a time when even you wouldnt have been aware of this simple term 'CTC'. If we keep our questions to ourselves thinking how kiddish they are, we would never be able to succeed.
I request you and other similar minded people not to dissuade members from sharing their doubts/queries. We are all here to help each other grow.
Cheers
From India
Hi,
I am Mudra, and I had posted the query yesterday.
With the replies, I am given to understand that the assumption has fallen as to I am a HR professional and do not know what is CTC. I am an IT professional and I am aware of what is CTC.
But as you can see, my hope was to come out of the ambiguity that I am in presently.
I appreciate if the communicaty does not assume anything from another member's queries, and count on knowledge base. Instead a free talk on the topic (however small or big) will be more helpful for many of us, HR, Non-HR members.
In any case, thanks for the replies.
Regards
Mudra
I am Mudra, and I had posted the query yesterday.
With the replies, I am given to understand that the assumption has fallen as to I am a HR professional and do not know what is CTC. I am an IT professional and I am aware of what is CTC.
But as you can see, my hope was to come out of the ambiguity that I am in presently.
I appreciate if the communicaty does not assume anything from another member's queries, and count on knowledge base. Instead a free talk on the topic (however small or big) will be more helpful for many of us, HR, Non-HR members.
In any case, thanks for the replies.
Regards
Mudra
Hi Mudra,
Believe me, you have come to the right place for your queries.And I totally agree with you that what is more important is the knowledge pool .
Kindly let me know if my earlier post was of some use. I tried to answer 2 of the questions.Am not very sure about the 3rd, I could try and get back to you after some research or let other senior members in the forum take charge.
Keep up your spirits.
God Bless
From India
Believe me, you have come to the right place for your queries.And I totally agree with you that what is more important is the knowledge pool .
Kindly let me know if my earlier post was of some use. I tried to answer 2 of the questions.Am not very sure about the 3rd, I could try and get back to you after some research or let other senior members in the forum take charge.
Keep up your spirits.
God Bless
From India
Hi Mudra,
Let me try answering your query.
Now, if we go step by step,
CTC = Cost to Company. This includes each and every penny that company spends on you. It may not be direct cash in your hand, but some benefits like meal one time a day, some insurance policies, PF, conveyance ( If company provides you some cab or bus facility) etc.
So, assuing that now, the components of your CTC would be,
Basic A
HRA B
HMA C
CCA D
Prof. E
Ent. F
Medical G
LTA H
so, your GROSS = ( A+B+C+D+E+F+G+H)
other benefits PF = I (12% of your basic)
Some insurance policy = J (If applicable)
Meal facility = K (If applicable)
Conveyance = L (If applicable)
So, now your CTC would be
CTC = GROSS + Benefits
= ( A+B+C+D+E+F+G+H) (I+J+K+L)
But, if you check now, the liquid cash in hand for you is GROSS ( A+B+C+D+E+F+G+H) might be with some deuctions in it according to your company policy. But, though you are not getting Benefits (I+J+K+L) as cash in hand, you are enjoying the fruit of it by availing meal facility and can facility and stuff. That means your company is investing this amount on YOu and for YOU. So, any organization would add it into the individual's CTC. I am sure that your deductions would be the same i.e benefits and statutory.
I hope that this explination would be sufficient. In case, if it is not still clear try asking your HR professional or else you could mail me your break-up so that I would be able to explain it even more clearly.
Regards,
Kiran.
From Netherlands
Let me try answering your query.
Now, if we go step by step,
CTC = Cost to Company. This includes each and every penny that company spends on you. It may not be direct cash in your hand, but some benefits like meal one time a day, some insurance policies, PF, conveyance ( If company provides you some cab or bus facility) etc.
So, assuing that now, the components of your CTC would be,
Basic A
HRA B
HMA C
CCA D
Prof. E
Ent. F
Medical G
LTA H
so, your GROSS = ( A+B+C+D+E+F+G+H)
other benefits PF = I (12% of your basic)
Some insurance policy = J (If applicable)
Meal facility = K (If applicable)
Conveyance = L (If applicable)
So, now your CTC would be
CTC = GROSS + Benefits
= ( A+B+C+D+E+F+G+H) (I+J+K+L)
But, if you check now, the liquid cash in hand for you is GROSS ( A+B+C+D+E+F+G+H) might be with some deuctions in it according to your company policy. But, though you are not getting Benefits (I+J+K+L) as cash in hand, you are enjoying the fruit of it by availing meal facility and can facility and stuff. That means your company is investing this amount on YOu and for YOU. So, any organization would add it into the individual's CTC. I am sure that your deductions would be the same i.e benefits and statutory.
I hope that this explination would be sufficient. In case, if it is not still clear try asking your HR professional or else you could mail me your break-up so that I would be able to explain it even more clearly.
Regards,
Kiran.
From Netherlands
How about these definitions:
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Community Technology Centers Computing » SMS
Cyclists Touring Club Community » Sports
Competition Transition Charge Business » General
Community Technology Center Community » Educational
City Technology College Business
Channel To Channel Computing » General
Combat Training Center Governmental » Military
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Central Traffic Control Community » Law
Citizens Telephone Company Business » Firms
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Contract Target Cost Governmental » Military
Community Tribute Classic Community
Information copied from http://www.abbreviations.com/
John Chiang
From China, Shanghai
Common Toxicity Criteria Medical » Oncology
Coast To Coast Business » Accounting
Coast To Coast Regional
Community And Technical Colleges Business » General
Community Technology Centers Computing » SMS
Cyclists Touring Club Community » Sports
Competition Transition Charge Business » General
Community Technology Center Community » Educational
City Technology College Business
Channel To Channel Computing » General
Combat Training Center Governmental » Military
Centralized Traffic Control Governmental » Transportation
Certified Travel Counselor Business » Positions
Center To Center Business » General
Cinnamon Toast Crunch Miscellaneous » Food
Care To Chat? Internet » Chat
Corporate Tax Credit Business » General
Community Technology Centre Business » Firms
Cost to company Business » General
Concord Telephone Company Business » Firms
Community Transportation Coordinator Governmental » Transportation
Central Traffic Control Community » Law
Citizens Telephone Company Business » Firms
Catholic Theological College Academic & Science » Universities
Contract Target Cost Governmental » Military
Community Tribute Classic Community
Information copied from http://www.abbreviations.com/
John Chiang
From China, Shanghai
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