We have set up a new ITES services company and mostly engineers are working in different levels like Design Engineer, Prject Engineer ,Team Member and Prject managers. Pl sugeest us salary structure by posting Your company's salary structures. WE are based at south india(Coimbatore).
From India, Bangalore
1From India, Bangalore
Hi Meenakshi,
CTC stands for cost to the company i.e the total expenditure of the company towards a particular employee. It includes each and every cost in terms of money and materials, some of the components are-
Gross Salary
Bonus
PF Contribution from employer side
ESI or Medical contribution from Employer side
Cell Phone Allowance
Hard furnishing goods
Food coupons
The contents of the salary break up is as below, you can prepare it at the
suitability of your own.
HRA would be50 or 60% of basic.
Basic
HRA
TA
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on
company policy
Annual Fixed Gross Cost= Gross/Annum+PF+ESI+Med
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Total Cost = AFGC + EX Gratia/Bonus
Annual total cost is also called as CTC.
Hope now it will be very much clear to you,,
if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
CTC stands for cost to the company i.e the total expenditure of the company towards a particular employee. It includes each and every cost in terms of money and materials, some of the components are-
Gross Salary
Bonus
PF Contribution from employer side
ESI or Medical contribution from Employer side
Cell Phone Allowance
Hard furnishing goods
Food coupons
The contents of the salary break up is as below, you can prepare it at the
suitability of your own.
HRA would be50 or 60% of basic.
Basic
HRA
TA
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on
company policy
Annual Fixed Gross Cost= Gross/Annum+PF+ESI+Med
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Total Cost = AFGC + EX Gratia/Bonus
Annual total cost is also called as CTC.
Hope now it will be very much clear to you,,
if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
Hi Amit, I’m having a doubt in HRA. In our office we are giving 40% HRA from the basic salary. Is that right or wrong? Pls clarify Thanks & Regards, Sivaranjani Sriram
From India, Madras
From India, Madras
hi For Non-metro the exemption of TDS in case of HRA is only 40% and in case of Metro is 50%. But it is upto you to assign even 50 to 70% as HRA. As u r in coimbatore it is 40%. regards bavani
From India, Madras
From India, Madras
Dear All, Can u pl forward your company’s present salary structure as an attachment. regards
From India, Bangalore
From India, Bangalore
hi,
this is the common structure which will serve as a guidance for you.
BASIC - 30% OF TOTAL CTC (IT MAY GO UPTO 60% WHICH IS ADVISABLE NOT MORE THAN THAT)
DA - NIL (you can eliminate this as nowadays everything we work on basic and it doesn't make any difference. if you prefer to have DA, ensure that the Basic and DA doesnot exceed 30% ~ 60%)
HRA - 40 % of Basic in case of non-metro & 50% in case of metro
Medical - 1250 pm (15000 is exempted if an employee provides bill else taxable)
Transport - 800 pm (its fully exempted)
Uniform Allowance - 300 to 500 (any nominal amount to maintain uniform is exemted, if you provide uniform)
Educational allowance - 100 per month per kid and maximum two kids are exempted
Hostel Allowance - 150 per month per kid and maximum two kids are exempted from tax
Flexi Allowance - any other amount can be included in this field.
Deductions :
PF - 12 % of basic (both employer and employee)
LTA - 1 month of basic per annum (which will be paid to them once in two years and exempted once in two years if they provide bills)
Gratuity (compulsary if they complete 5 yrs of service) and superannuation is optional. if the co., agrees it can be deducted from the monthly salary.
regards
bavani
From India, Madras
this is the common structure which will serve as a guidance for you.
BASIC - 30% OF TOTAL CTC (IT MAY GO UPTO 60% WHICH IS ADVISABLE NOT MORE THAN THAT)
DA - NIL (you can eliminate this as nowadays everything we work on basic and it doesn't make any difference. if you prefer to have DA, ensure that the Basic and DA doesnot exceed 30% ~ 60%)
HRA - 40 % of Basic in case of non-metro & 50% in case of metro
Medical - 1250 pm (15000 is exempted if an employee provides bill else taxable)
Transport - 800 pm (its fully exempted)
Uniform Allowance - 300 to 500 (any nominal amount to maintain uniform is exemted, if you provide uniform)
Educational allowance - 100 per month per kid and maximum two kids are exempted
Hostel Allowance - 150 per month per kid and maximum two kids are exempted from tax
Flexi Allowance - any other amount can be included in this field.
Deductions :
PF - 12 % of basic (both employer and employee)
LTA - 1 month of basic per annum (which will be paid to them once in two years and exempted once in two years if they provide bills)
Gratuity (compulsary if they complete 5 yrs of service) and superannuation is optional. if the co., agrees it can be deducted from the monthly salary.
regards
bavani
From India, Madras
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CTC Structure-1.pdf
CTC Structure.xls