C.T.C. = Salary + Double PF (Employee as well Employer Share - Generally companies show one PF in salary slip but deduct Employer share also) + Bonus (one month basic salary / 12 - Bonus will be paid after one year, Generally in Diwali time) + L.T.A. (This is also calculated like bonus and will be paid later) + Medical Allowance (If any and like bonus will be paid after one year) + E.S.I.C. (If applicable - is applicable for certain employees –Gross salaries below 10,000/- Companies are deducting Employee + Employer Share or one part i.e. Employee share only) + P.T.
Now a days some companies also deducting Gratuity of course which is not legal.
The employee yearly total expenditure will be calculated and will be adjusted in employee salary!
Organizations collect Bonus, L.T.A., Medical Allowance every month and will pay after one year to the employee stating that they are favourng to Employee!
Example: Employee C.T.C. is Rs.108000/- per one year - For one month Rs. 9000/- ,
Basic – Rs. 4800/- , 2PF – Rs. 576 * 2 = 1152/- , Monthly Bonus – Rs. 400/-, Monthly LTA Rs 400/-, Medical Allowance – Rs. 400/- , P.T. – Rs. 200/- etc..
Salary (Which is shown in salary slip) = CTC – Employer PF = Rs. 8424/-
Net Salary / Salary Payble = Rs. 8424 – Rs. 576 (Employee PF) – Rs. 1200 (Bonus, LTA, Medical Allowance One Month Basic Salary will be divided by 12 – Rs. 4800/12 = Rs. 400 – 3* 400 – Rs. 1200) – Rs. 312 (ESIC – Employee + Employer - 6.5% of Basic + HRA) – Rs. 200 (P.T.) = Rs. 6136/-.
Note: Bonus, LTA and Medical Allowance will calculated on Basic Salary and will be paid after one year.
With Regards.
Venkatram Rao K
From India, Mumbai
Now a days some companies also deducting Gratuity of course which is not legal.
The employee yearly total expenditure will be calculated and will be adjusted in employee salary!
Organizations collect Bonus, L.T.A., Medical Allowance every month and will pay after one year to the employee stating that they are favourng to Employee!
Example: Employee C.T.C. is Rs.108000/- per one year - For one month Rs. 9000/- ,
Basic – Rs. 4800/- , 2PF – Rs. 576 * 2 = 1152/- , Monthly Bonus – Rs. 400/-, Monthly LTA Rs 400/-, Medical Allowance – Rs. 400/- , P.T. – Rs. 200/- etc..
Salary (Which is shown in salary slip) = CTC – Employer PF = Rs. 8424/-
Net Salary / Salary Payble = Rs. 8424 – Rs. 576 (Employee PF) – Rs. 1200 (Bonus, LTA, Medical Allowance One Month Basic Salary will be divided by 12 – Rs. 4800/12 = Rs. 400 – 3* 400 – Rs. 1200) – Rs. 312 (ESIC – Employee + Employer - 6.5% of Basic + HRA) – Rs. 200 (P.T.) = Rs. 6136/-.
Note: Bonus, LTA and Medical Allowance will calculated on Basic Salary and will be paid after one year.
With Regards.
Venkatram Rao K
From India, Mumbai
Dear Ramesh,
Salary per month is different from CTC.
To calculate CTC you have take the annual gross salary of an employee and consider the following emoluments for annual:
a. Bonus (yearly)
b. Gratuity (yeraly)
c. Incentives (if any)
d. Employer's share of PF (13.61%) (monthly)
e. Employer's share of ESI (4.75%) (monthly)
f. Uniforms, shoes, Canteen facilities if provided (mthly)
g. Medical Allowance (if applicable)
hg. LTA (if applicable)
Regards,
B Saravanan
From India, Madras
3Salary per month is different from CTC.
To calculate CTC you have take the annual gross salary of an employee and consider the following emoluments for annual:
a. Bonus (yearly)
b. Gratuity (yeraly)
c. Incentives (if any)
d. Employer's share of PF (13.61%) (monthly)
e. Employer's share of ESI (4.75%) (monthly)
f. Uniforms, shoes, Canteen facilities if provided (mthly)
g. Medical Allowance (if applicable)
hg. LTA (if applicable)
Regards,
B Saravanan
From India, Madras
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