Hello,
The salary slip specimen shows the employers contribution for the PF & ESI along with the Gratuity constraint (explained very well by Mr.C.M Mohla) which sums up your CTC.
As per your salary in hand is concern,the deduction part comes into the picture.Now from your Gross salary 7649 the deductions are as follows:
Employee contribution
1)PF contribution= (basic+DA)*12%=(3825+765)* 12%=550.80
2)ESI contribution=gross*1.75%=133.85
Total deduction= 550.80+133.85=684.65
Hence total salary in hand= gross-deductions=7649-684.65=6964
Hope the above explanation along with C.M.Mohla's explanation help serve your purpose.
From India, Pune
6The salary slip specimen shows the employers contribution for the PF & ESI along with the Gratuity constraint (explained very well by Mr.C.M Mohla) which sums up your CTC.
As per your salary in hand is concern,the deduction part comes into the picture.Now from your Gross salary 7649 the deductions are as follows:
Employee contribution
1)PF contribution= (basic+DA)*12%=(3825+765)* 12%=550.80
2)ESI contribution=gross*1.75%=133.85
Total deduction= 550.80+133.85=684.65
Hence total salary in hand= gross-deductions=7649-684.65=6964
Hope the above explanation along with C.M.Mohla's explanation help serve your purpose.
From India, Pune
Dear fellow HR professionals,
CTC means COST TO COMPANY which includes all expenses incurred by the compny while engaging an employee.
Apart from salary components others like HRA, EPF, ESI contributions, Bonus, Medical, Transport, Canteen subsidy, Leave travel, Gratuity,
and any other which is spent on employee are taken for CTC. For the company it is the COST of hiring a person.
Many a copmany do reveal how it has arrived at CTC before hand to the prospective employee.
By and large it is a contract entered into between employer and employee.
Hope this will remove LESS UNDER STANDING of CTC.
Thanks
HC. SUBBARAMU
HR CONSULTANT
Bangalore
From India, Kochi
CTC means COST TO COMPANY which includes all expenses incurred by the compny while engaging an employee.
Apart from salary components others like HRA, EPF, ESI contributions, Bonus, Medical, Transport, Canteen subsidy, Leave travel, Gratuity,
and any other which is spent on employee are taken for CTC. For the company it is the COST of hiring a person.
Many a copmany do reveal how it has arrived at CTC before hand to the prospective employee.
By and large it is a contract entered into between employer and employee.
Hope this will remove LESS UNDER STANDING of CTC.
Thanks
HC. SUBBARAMU
HR CONSULTANT
Bangalore
From India, Kochi
Note:
Besides employers designing a rigid CTC component breakup, of late, some companies like Procter & Gamble, TCS have introduced "My Pay My Choice' system wherein every executive can design his own flexi pay components within the CTC figure at the time of joining. Hope 'conditions apply' without saying. Definitely not all employers would accept this model.
From India, Madras
Besides employers designing a rigid CTC component breakup, of late, some companies like Procter & Gamble, TCS have introduced "My Pay My Choice' system wherein every executive can design his own flexi pay components within the CTC figure at the time of joining. Hope 'conditions apply' without saying. Definitely not all employers would accept this model.
From India, Madras
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Salary slip final.xls
Salary slip.doc