Friends,
While fixing (Basic+DA), Is there a fixed percentage we have to consider from CTC?
What are the criteria for fixing it?
If there is no fixed percentage, what is the ideal percentage? (Basic + DA to CTC).
Please clarify my doubt.
Regards,
Shijit.
From India, Kochi
122While fixing (Basic+DA), Is there a fixed percentage we have to consider from CTC?
What are the criteria for fixing it?
If there is no fixed percentage, what is the ideal percentage? (Basic + DA to CTC).
Please clarify my doubt.
Regards,
Shijit.
From India, Kochi
Hi Shijit,
CTC is the final figure. To arrive at this, you should ideally have a basic salary figure for various bands. Since most of other heads are % of basic salary, it will be easier for you at determining the CTC. For having idea about basic salary, you can take help from various salary guides readily available in market.
Regards
Team GroupHR
From India, Delhi
CTC is the final figure. To arrive at this, you should ideally have a basic salary figure for various bands. Since most of other heads are % of basic salary, it will be easier for you at determining the CTC. For having idea about basic salary, you can take help from various salary guides readily available in market.
Regards
Team GroupHR
From India, Delhi
Hi Shijit,
As per my knowledge there is no hard and fst rule for calculating basic of CTC.
But s MR Malik said ideally it rnges from 40-50percent.
But dont get confused if the bsic is evn 25 or 30 percent calculated.
Coz usually it depends upon the employers chice and number of components addded.
Usually,according to my xperince tax is calculted on Basics of ur CTC component.
so usually,it is kept to minimum..
What I have seen is when there are very few components lik mediclaim, trzvel allowance, special alllowance, very less ones than usually they keep 40 or 50 percent.Its again employers choice.
Less your basics, more beneficial..But still it doesnt affect so much since thr r other n number of benefits which company offers a employe in CTC, wherin you tend to save lot of amount..
Hope it helped you to understan.
Good Luck
Cheers
Rashmi Bhalerao
From India, Mumbai
As per my knowledge there is no hard and fst rule for calculating basic of CTC.
But s MR Malik said ideally it rnges from 40-50percent.
But dont get confused if the bsic is evn 25 or 30 percent calculated.
Coz usually it depends upon the employers chice and number of components addded.
Usually,according to my xperince tax is calculted on Basics of ur CTC component.
so usually,it is kept to minimum..
What I have seen is when there are very few components lik mediclaim, trzvel allowance, special alllowance, very less ones than usually they keep 40 or 50 percent.Its again employers choice.
Less your basics, more beneficial..But still it doesnt affect so much since thr r other n number of benefits which company offers a employe in CTC, wherin you tend to save lot of amount..
Hope it helped you to understan.
Good Luck
Cheers
Rashmi Bhalerao
From India, Mumbai
The current trend is to keep Compensation stuctures simple, say basic pay, hra, spl allowance etc. Only a few benefits are tax exempt like medical reimbursement (up to Rs.15000 p.a), LTA (once in two years on actuals), PF contribution etc. Most other benfits are taxable, either in the hands of the employee or the employer. Hence it's better to keeps things simple, than to have a vatiety of benefits, as was the trend earlier.
SM
From India, Madras
SM
From India, Madras
Basic pay,DA, allowances PF ( employer and employee contribution) Gratuity, leave encashment,Housing and all bnefeits provided to an employee, in short the cost incurred by a company , is known as CTC. From this CTC whatis payable to an employee as cash depends on the company.
From India, Madras
From India, Madras
Dear Mr. Malic Could you please clarify, is there is any act or rule. for the basic is 50% of ctc as you mentioned? VpS:confused:
From India, Chennai
From India, Chennai
Hi Shijit
I think following steps will help you to fixing salary.
1) First You decide the CTC (This can be based Job Band /Exp. and negotiation with the candidate )
2) Ideally Basic amount should be between 35 to 45 % of CTC. (There is no such rule for Basic fixation as per my info.)
3) Once you put the basic amount, then you fix the HRA based on Basic %. once you fix this percentage this should common for all salary fixation in future. So that this can be streamlined .
4) You can count 12% of Basic as PF of employer contribution.
5) Gratuity that can 4.81% of Basic
6) Now rest salary amount you can put in to difference heads like special , education, LTA, Bonus etc. as per you company practices.
This will be make your ctc.
From India
I think following steps will help you to fixing salary.
1) First You decide the CTC (This can be based Job Band /Exp. and negotiation with the candidate )
2) Ideally Basic amount should be between 35 to 45 % of CTC. (There is no such rule for Basic fixation as per my info.)
3) Once you put the basic amount, then you fix the HRA based on Basic %. once you fix this percentage this should common for all salary fixation in future. So that this can be streamlined .
4) You can count 12% of Basic as PF of employer contribution.
5) Gratuity that can 4.81% of Basic
6) Now rest salary amount you can put in to difference heads like special , education, LTA, Bonus etc. as per you company practices.
This will be make your ctc.
From India
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