I am a fresher in HR. I recently joined a company. Can anyone guide me on making CTC and provide an explanation?
From India, Delhi
From India, Delhi
For creating CTC, you should have salary and other components like Dearness Allowance, Travel allowance, City Compensatory allowance and allowances which are relevant for the employees, their roles and responsibilities. Then comes, ESI, PF deductions, Incometax deduction etc. For a factory worker, uniform allowance and uniform maintenance allowance is paid. Therefore, unless you give a complete picture of the company and other details, how can we suggest CTC?
Best wishes
From India
581Best wishes
From India
Hello,
CTC stands for COST TO COMPANY. As the words suggested its employee cost to company which means payable either in monthly wages/ salary or its reimbursed value of perks like Conveyance, LTA, phone or any such cost of facility like Bus facility etc. Statutory Contributions made by employer towards welfare schemes like EPF, ESI ,EDLI, premium UNDER Personal Accident policy, Mediclaim , Bonus , gratuity, cost of uniform and shoes, canteen subsidy like headcounts are parts and parcels of CTC.
Regds,
RDS Yadav
Director,
Future Institute of Engg and Management Technology, Bareilly
Labour Law Consultant,
NAVTARANG HR SERVICES
WA-09634532026
From India, New Delhi
CTC stands for COST TO COMPANY. As the words suggested its employee cost to company which means payable either in monthly wages/ salary or its reimbursed value of perks like Conveyance, LTA, phone or any such cost of facility like Bus facility etc. Statutory Contributions made by employer towards welfare schemes like EPF, ESI ,EDLI, premium UNDER Personal Accident policy, Mediclaim , Bonus , gratuity, cost of uniform and shoes, canteen subsidy like headcounts are parts and parcels of CTC.
Regds,
RDS Yadav
Director,
Future Institute of Engg and Management Technology, Bareilly
Labour Law Consultant,
NAVTARANG HR SERVICES
WA-09634532026
From India, New Delhi
Hi Dear,
As per new Wage code the basic should be 50% of the CTC, so keeping in mind you can design the Salary Structure. Now, as per your company's policy the structure is to be assigned as different companies follows different salary structures/components. Now lets assume that you want to design the salary structure of person who is offered an Annual CTC of Rs. 12,00,000/-. Subsequently the Monthly CTC will be Rs. 1,00,000/-. Now since the Basic is to be 50% of CTC thus his Monthly Basic will be Rs. 50,000/-. HRA is to be 40% for Urban and 30% for Rural. Now if your company has got approval from EPFO for contribution of EPF on whole Basic then PF will be 12% of entire basic else Rs. 1800/-. So to elaborate, let me know that what all components do you consider for the purpose of calculation of CTC.
Basic Rs. 50,000/-
HRA Rs. 15000/- (Rural/Semi Urban) or Rs.20000/- (Urban)
Other Allowances
Gross Salary is Sum of Above three components
PF Rs.1800/- or Rs.6000/-
Gratuity 4.81% of Basic
etc.
From India, Chandigarh
As per new Wage code the basic should be 50% of the CTC, so keeping in mind you can design the Salary Structure. Now, as per your company's policy the structure is to be assigned as different companies follows different salary structures/components. Now lets assume that you want to design the salary structure of person who is offered an Annual CTC of Rs. 12,00,000/-. Subsequently the Monthly CTC will be Rs. 1,00,000/-. Now since the Basic is to be 50% of CTC thus his Monthly Basic will be Rs. 50,000/-. HRA is to be 40% for Urban and 30% for Rural. Now if your company has got approval from EPFO for contribution of EPF on whole Basic then PF will be 12% of entire basic else Rs. 1800/-. So to elaborate, let me know that what all components do you consider for the purpose of calculation of CTC.
Basic Rs. 50,000/-
HRA Rs. 15000/- (Rural/Semi Urban) or Rs.20000/- (Urban)
Other Allowances
Gross Salary is Sum of Above three components
PF Rs.1800/- or Rs.6000/-
Gratuity 4.81% of Basic
etc.
From India, Chandigarh
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