31- Conceptually there are only two mistakes in CTC Calculation attached by you. i) employees' contribution to PF is deducted from the gross salary payable to employee, hence it is being paid from employees pocket and not from employers pocket and should not be added in Cost to Company (CTC). ii) Again P Tax is deducted from employees' salary i.e. paid from employees' pocket hence should not be part of CTC.
- It is not mandatory to pay DA in private sector and many organizations do not have DA in their salary structure. Some companies do pay DA either as a Fixed DA or by way of applying some formula or percentage.
- CTC Calculation should ideally include all costs incurred on employee's salary and perks. The definition of perks and whether to include them in CTC is always argued and debated.For example some cos. include cost of free transport and canteen subsidy in CTC while others don't'. Some Cos include gratuity in CTC while some don't' arguing that it is payable only after 5 years service.
- In case of Bonus if it is payable it needs to be added in CTC.
From India, Pune
There is a mistake in calculation Employee PF, ESI & Professional Tax is not include in CTC.
This all are deduction which is deduct from Employee's Gross Salary.
There is only Employer contribution calculated in CTC. (like Employer PF, ESI Bonus, Gratuity & other facility like Insurance, GSLI, Medical policy etc.)
From India, Pune
This all are deduction which is deduct from Employee's Gross Salary.
There is only Employer contribution calculated in CTC. (like Employer PF, ESI Bonus, Gratuity & other facility like Insurance, GSLI, Medical policy etc.)
From India, Pune
Cost to Company include:
1. Salary: Basic + DA + HRA + CCA +
2. Other Allowances: Books & Periodicals + servant allowance + any other allowances;
3. Statutory payments: Provident Fund + Bonus + Gratuity;
But do not include:
1. Employee PF Contribution
2. ESI Contribution
3. Profession Tax
Accordingly the calculation would be as under:
CTC
per month 25000
year 300000
Basic 7000 (84000)
HRA 2800(33600)
CONVEYANCE ALLOWANCE 800(9600)
MEDICAL REIMBURSEMENT 1250(15000)
EDUCATION ALLOWANCE 200 (2400)
FOOD COUPON 1000(12000)
SPECIAL ALLOWANCE 10315(123780)other allowances
23365(280380)
TOTAL DEDUCTION
EMPLOYEE PF 780(9360) shall not part CTC
EMPLOYER CONTRIBUTION 780(9360)
EMPLOYEE ESI 0(0)
EMPLOYER ESI
PROFESSIONAL TAX 75 (900) shall not part CTC)
1635 (19620)
25000 (300000)
(FIGURES IN BRACKETS REPRESENTS PER YEAR)
In addition to the above you can also include the following proportionately deducting the same from special allowances / other allowances.
description per month per year
1. ex-gratia / bonus 550 6600 (Minimum bonus)
2. Gratuity (Basic+DA x15 x years /26) 338 4050
(take for one year)
3. LTA 1250 15000
From India, Hyderabad
1. Salary: Basic + DA + HRA + CCA +
2. Other Allowances: Books & Periodicals + servant allowance + any other allowances;
3. Statutory payments: Provident Fund + Bonus + Gratuity;
But do not include:
1. Employee PF Contribution
2. ESI Contribution
3. Profession Tax
Accordingly the calculation would be as under:
CTC
per month 25000
year 300000
Basic 7000 (84000)
HRA 2800(33600)
CONVEYANCE ALLOWANCE 800(9600)
MEDICAL REIMBURSEMENT 1250(15000)
EDUCATION ALLOWANCE 200 (2400)
FOOD COUPON 1000(12000)
SPECIAL ALLOWANCE 10315(123780)other allowances
23365(280380)
TOTAL DEDUCTION
EMPLOYEE PF 780(9360) shall not part CTC
EMPLOYER CONTRIBUTION 780(9360)
EMPLOYEE ESI 0(0)
EMPLOYER ESI
PROFESSIONAL TAX 75 (900) shall not part CTC)
1635 (19620)
25000 (300000)
(FIGURES IN BRACKETS REPRESENTS PER YEAR)
In addition to the above you can also include the following proportionately deducting the same from special allowances / other allowances.
description per month per year
1. ex-gratia / bonus 550 6600 (Minimum bonus)
2. Gratuity (Basic+DA x15 x years /26) 338 4050
(take for one year)
3. LTA 1250 15000
From India, Hyderabad
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Salary-Note.doc
SALARY SHEET CALCULATION.xls