Hi all, Can anybody guide me in CTC designing when package is known. I want to know about the calculation of leave salary and gratuity into that. Thanks Shweta
From India, Pune
From India, Pune
For your kind information CTC does not include leave encashment and gratuity Regards, R.Ramkishore
From India, Bangalore
53From India, Bangalore
Greetings,
I guess you are working on the complete designing of a salary structure .Leaves are generally encashed at the time of separation . They are done on the basic pay per day , i.e. basic pay for the month / 22 days , given the fact that you all have five days of wrong in a week. Incase it is six days it would be 26 days .
Gratuity is calculated as shared below. Payment of Gratuity Act, 1972
Object: It is an Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, and shops or other establishments.
Applicability: Any Employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.
Entitlement: Gratuity is payable to an employee (nominee - in case of death of employee) who has rendered continuous service of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of disablement.
Calculation: W x Y x 15/26 where W = Last Wage drawn i.e., basic + DA
Y = number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as full year.
15 = 15 days salary
26 = No. of working days in a month.
Maximum Limit: Rs.3.5 lacs. (w.e.f 24-09-1997)
Time Limit for application to employer: Employee has to make an application in Form-I to his employer within 30 days from the date of gratuity becomes payable.
To calculate the gratuity: it has the formula
Ex. Number of yrs of service x Last salary drawn (Basic+D.A) X 15
26
Please do consider the following links while working on the structure.
https://www.citehr.com/227160-ctc-rs-1-00-000-pm.html
https://www.citehr.com/98502-incenti...employees.html
Regards,
(Cite Contribution)
From India, Mumbai
I guess you are working on the complete designing of a salary structure .Leaves are generally encashed at the time of separation . They are done on the basic pay per day , i.e. basic pay for the month / 22 days , given the fact that you all have five days of wrong in a week. Incase it is six days it would be 26 days .
Gratuity is calculated as shared below. Payment of Gratuity Act, 1972
Object: It is an Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, and shops or other establishments.
Applicability: Any Employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.
Entitlement: Gratuity is payable to an employee (nominee - in case of death of employee) who has rendered continuous service of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of disablement.
Calculation: W x Y x 15/26 where W = Last Wage drawn i.e., basic + DA
Y = number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as full year.
15 = 15 days salary
26 = No. of working days in a month.
Maximum Limit: Rs.3.5 lacs. (w.e.f 24-09-1997)
Time Limit for application to employer: Employee has to make an application in Form-I to his employer within 30 days from the date of gratuity becomes payable.
To calculate the gratuity: it has the formula
Ex. Number of yrs of service x Last salary drawn (Basic+D.A) X 15
26
Please do consider the following links while working on the structure.
https://www.citehr.com/227160-ctc-rs-1-00-000-pm.html
https://www.citehr.com/98502-incenti...employees.html
Regards,
(Cite Contribution)
From India, Mumbai
Dear sir,
kindly check the below attached ctc design being followed by my company. tell me it is right or wrong.
Person 1
Basic 6650
HRA 2660
Conv 800
Spl. Al 3190
Gross Salary 13300
PF. Employer 885
ESI Employer 632
Bonus 554
Leave 256
CTC 15627
Salary inhand 12287 (gross salary- pf employee- esi employee)
(13300-780-233)
From India, New Delhi
kindly check the below attached ctc design being followed by my company. tell me it is right or wrong.
Person 1
Basic 6650
HRA 2660
Conv 800
Spl. Al 3190
Gross Salary 13300
PF. Employer 885
ESI Employer 632
Bonus 554
Leave 256
CTC 15627
Salary inhand 12287 (gross salary- pf employee- esi employee)
(13300-780-233)
From India, New Delhi
Dear All, Kindly let me know can we keep fixed basic CTC same for all the employees working in the organisation? Do we have any provision in Minimum wages act for minimum basic salary?
From India, Pune
From India, Pune
Some companies are following Gratuity as a part of CTC, while others not. It depends on the company ctc structure. Folllow your company norms. Thanks srinivas
From India, Hyderabad
From India, Hyderabad
Dear Peer,
CTC designing, is varining from company to company. Companies plan their salary structrue based on their process and function. Eg. If the company deals with FMCG good, they look upon the attendance very carefully and the percentage of leave procurement is also very less. The employees are not suppose to avail maximum leaves for their convinence and Saturday and Sundays are the major constrains of them.
In some companies, incentive structrue might be the base for the salary structure. But generally salary possess.
Basic- 40% of CTC
HRA-50% and 40% for Second level cites
Other allowences based on your designation.
and
Deductions in the means of ESI, PF.
ESI is 1.75% from Basic.
PF is 12 % from Basic.
Other LOP
Gross salary minus dedections is the Net Salary.
Regards,
Nelson.S
Chennai.
From India, Bangalore
CTC designing, is varining from company to company. Companies plan their salary structrue based on their process and function. Eg. If the company deals with FMCG good, they look upon the attendance very carefully and the percentage of leave procurement is also very less. The employees are not suppose to avail maximum leaves for their convinence and Saturday and Sundays are the major constrains of them.
In some companies, incentive structrue might be the base for the salary structure. But generally salary possess.
Basic- 40% of CTC
HRA-50% and 40% for Second level cites
Other allowences based on your designation.
and
Deductions in the means of ESI, PF.
ESI is 1.75% from Basic.
PF is 12 % from Basic.
Other LOP
Gross salary minus dedections is the Net Salary.
Regards,
Nelson.S
Chennai.
From India, Bangalore
Dear All, CTC will be vary from company to company. kindly check the below attached ctc design in xl format being followed by my company. tell me it is right or wrong. regards mselvame
From India, Madras
From India, Madras
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CTC Calculator.xls