Dear All, Senior, Please tell me the correct calculation of CTC With Thanks & Regards Pulkit
From India, New Delhi
1From India, New Delhi
Dear Mr.Pulkit
Cost to Company is the Gross pay along with the prerequisites and benefits. The standard items for calculating CTC are:
- Basic - 40% (varies from company to company) of CTC
-. HRA 40%- 60% of Basic Pay (depending on the tier cities)
- LTA as per Income tax act (some organisation give monthly @12%or 8.33%) some give as per Income Tax provisions.
- Education Allowance
- Medical Allowance @ 1250/- per mensem
- PF/ESI/ML as per relevent Act
- Earned Leave (encahsment varies on the discretion of basic pay and some on gross pay)
- Gratuity 4.81% of Basic Pay(includindg DA, where applicable)
-.Conveyance reimbursement @ 800/- mensem
- Food Allowance
- Petrol Expenses depending on the company's nature of work
- Bonus as per Bonus Act
Hence, Gross Salary = Basic+HRA+CA+Med+Edu+Other Allowance
Basically for CTC, you need to calculate first (Gross per month * 12) then add the Bonus amount which would Annual Fixed Gross Cost. Now you should add the PF contribution and ESI made only by the employer's side per annum basis to get the desired CTC.
CTC is now equal to Gross per annum +Bonus + PF & ESI cont. + any other benefits provided by the company.
Hope this clarifies your query.
From India, Visakhapatnam
Cost to Company is the Gross pay along with the prerequisites and benefits. The standard items for calculating CTC are:
- Basic - 40% (varies from company to company) of CTC
-. HRA 40%- 60% of Basic Pay (depending on the tier cities)
- LTA as per Income tax act (some organisation give monthly @12%or 8.33%) some give as per Income Tax provisions.
- Education Allowance
- Medical Allowance @ 1250/- per mensem
- PF/ESI/ML as per relevent Act
- Earned Leave (encahsment varies on the discretion of basic pay and some on gross pay)
- Gratuity 4.81% of Basic Pay(includindg DA, where applicable)
-.Conveyance reimbursement @ 800/- mensem
- Food Allowance
- Petrol Expenses depending on the company's nature of work
- Bonus as per Bonus Act
Hence, Gross Salary = Basic+HRA+CA+Med+Edu+Other Allowance
Basically for CTC, you need to calculate first (Gross per month * 12) then add the Bonus amount which would Annual Fixed Gross Cost. Now you should add the PF contribution and ESI made only by the employer's side per annum basis to get the desired CTC.
CTC is now equal to Gross per annum +Bonus + PF & ESI cont. + any other benefits provided by the company.
Hope this clarifies your query.
From India, Visakhapatnam
Dear Pulkit
CTC calculation is based on the allowances you provide to the employee..
Basic - 40% (varies from company to company) of CTC
-. HRA 40%- 60% of Basic Pay (depending on the tier cities)
- LTA as per Income tax act (some organisation give monthly @12%or 8.33%) some give as per Income Tax provisions.
- Education Allowance
- Medical Allowance @ 1250/- per mensem
- PF/ESI/ML as per relevent Act
- Earned Leave (encahsment varies on the discretion of basic pay and some on gross pay)
- Gratuity 4.81% of Basic Pay(includindg DA, where applicable)
-.Conveyance reimbursement @ 800/- mensem
- Food Allowance
- Petrol Expenses depending on the company's nature of work
-Anniversary Bonus
Regards, Srikanth
From India, Hyderabad
CTC calculation is based on the allowances you provide to the employee..
Basic - 40% (varies from company to company) of CTC
-. HRA 40%- 60% of Basic Pay (depending on the tier cities)
- LTA as per Income tax act (some organisation give monthly @12%or 8.33%) some give as per Income Tax provisions.
- Education Allowance
- Medical Allowance @ 1250/- per mensem
- PF/ESI/ML as per relevent Act
- Earned Leave (encahsment varies on the discretion of basic pay and some on gross pay)
- Gratuity 4.81% of Basic Pay(includindg DA, where applicable)
-.Conveyance reimbursement @ 800/- mensem
- Food Allowance
- Petrol Expenses depending on the company's nature of work
-Anniversary Bonus
Regards, Srikanth
From India, Hyderabad
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