Dear All,
What should be CTC components?. What are the laws for the different components of CTC? What is the main difference between gross salary and CTC?
Your prompt reply will highly be appreciated.
Gambhir
From India, Mundra
4What should be CTC components?. What are the laws for the different components of CTC? What is the main difference between gross salary and CTC?
Your prompt reply will highly be appreciated.
Gambhir
From India, Mundra
Hi
CTC Means cost to company it can be splitted by Month wise and per annum wise. for this we need components working like Basic+Hra+mediacl+conveyance allowance+professional benfits+sodexho coupons= Total (A) Bonus 8.33 % on basic(B) + statutory Terminal benfits(Companys contribution to P.F,gratuity Provision(C)
Total cost to company (A+B+C)=XXXXXX
Usha
From India, Pune
CTC Means cost to company it can be splitted by Month wise and per annum wise. for this we need components working like Basic+Hra+mediacl+conveyance allowance+professional benfits+sodexho coupons= Total (A) Bonus 8.33 % on basic(B) + statutory Terminal benfits(Companys contribution to P.F,gratuity Provision(C)
Total cost to company (A+B+C)=XXXXXX
Usha
From India, Pune
There is noithing called CTC as per law
I have attached an xl file for calculating CTC
You can modify, add, delete,change formula for your requirement
CTC should include all components that is spent on an employee
Siva
From India, Chennai
I have attached an xl file for calculating CTC
You can modify, add, delete,change formula for your requirement
CTC should include all components that is spent on an employee
Siva
From India, Chennai
Dear Kumar, I think Gratuity is a part of CTC. If an employee completes 5 years, gratuity will be paid by company so, it can be a part of CTC. But all depends on the company policy
From India, Mundra
From India, Mundra
one observation i have in the excel sheet is that the conveyance is 10% where as ideally it should only be 9600 annual as max allowed for income tax rebate. AS
From India, New Delhi
From India, New Delhi
Hi all
Point No 1
Gratuity is part of CTC In fact I used to add even Travel cost, Lunch expenses etc. It depends on how an organisation see it
But it is better to show all
Point No 2
This just a fictitious calculation So dont give importance to the percentage I have shown against HRA DA and Conveyance In fact, I have not shown superannuation and Performance payments
One has to keep an excel sheet like this for every Position and grade Many big organisations follow this method and there are standard formats available if u use SAP or People soft
Siva
From India, Chennai
Point No 1
Gratuity is part of CTC In fact I used to add even Travel cost, Lunch expenses etc. It depends on how an organisation see it
But it is better to show all
Point No 2
This just a fictitious calculation So dont give importance to the percentage I have shown against HRA DA and Conveyance In fact, I have not shown superannuation and Performance payments
One has to keep an excel sheet like this for every Position and grade Many big organisations follow this method and there are standard formats available if u use SAP or People soft
Siva
From India, Chennai
dear siva,
you have calculate the gratuity amount in CTC that is wrong.
Gratuity ahould be on basic +da only not on HRA
& Bonus also you have calulated wrong.
please check the file you have attached.
regards
Rajnish
From India, Delhi
you have calculate the gratuity amount in CTC that is wrong.
Gratuity ahould be on basic +da only not on HRA
& Bonus also you have calulated wrong.
please check the file you have attached.
regards
Rajnish
From India, Delhi
If I have calculated Gratuity and bonus on Basic then it is wrong These components must be calculated on Basic plus DA Regret for the error Siva
From India, Chennai
From India, Chennai
Dear All,
Wishing you and all the members of CiteHR network a Very Happy, Bright, Successful and Prosperous New Year - 2008,
For computing CTC at the time of negotiation for hiring a person Gratuity cannot be part of CTC, however, after completion of 5 years of service it is considered and posted as liability on the company in the Books of Accounts. So for any HR calculations too, after 5 years of service you may add it to CTC.
Rest all the payments / expenses borne by the Company for an Employee viz. Employer's PF share, ESI share, Statutory bonus (if applicable), Telephone reimbursement, Car maintenance and petrol expenses, canteen subsidy or any other fixed [payments / expenses paid in terms of remuneration is to be included in CTC.
Variable payments like incentives, festival /production bonus, sales incentives, tour expenses etc. are not part suppossed to be part of CTC.
Parwez
From India, Delhi
Wishing you and all the members of CiteHR network a Very Happy, Bright, Successful and Prosperous New Year - 2008,
For computing CTC at the time of negotiation for hiring a person Gratuity cannot be part of CTC, however, after completion of 5 years of service it is considered and posted as liability on the company in the Books of Accounts. So for any HR calculations too, after 5 years of service you may add it to CTC.
Rest all the payments / expenses borne by the Company for an Employee viz. Employer's PF share, ESI share, Statutory bonus (if applicable), Telephone reimbursement, Car maintenance and petrol expenses, canteen subsidy or any other fixed [payments / expenses paid in terms of remuneration is to be included in CTC.
Variable payments like incentives, festival /production bonus, sales incentives, tour expenses etc. are not part suppossed to be part of CTC.
Parwez
From India, Delhi
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CTC Calculator.xls