Dear All,
Plz provide me information What is the diff. b/w gross salary and CTC and also the percentages of various salary components like
Basic
HRA
Medical
Travelling Allowence
Special Allowence
PF
ESI
Also i wouls like to know Basic is calculated acc. to gross salary and rest all components are calculated acc. to basic. IS it right?
From India, New Delhi
1Plz provide me information What is the diff. b/w gross salary and CTC and also the percentages of various salary components like
Basic
HRA
Medical
Travelling Allowence
Special Allowence
PF
ESI
Also i wouls like to know Basic is calculated acc. to gross salary and rest all components are calculated acc. to basic. IS it right?
From India, New Delhi
As per my knowledge & Exp. ........
CTC = Basic + HRA + Conveyance + DA + Other Allowances + PF (Employer Side) + ESI (Employer Side)
Gross salary = Basic + HRA + Conveyance + DA + Other Allowances
Net Salary (Take away home) = Gross Salary - Canteen - PF(Employee) - ESI (Employee) - Welfare Fund - Others (Any other deduction as per company to company like advances, mobile etc..)
Hope it might help you..
Hemant Agarwal
From India, Faridabad
CTC = Basic + HRA + Conveyance + DA + Other Allowances + PF (Employer Side) + ESI (Employer Side)
Gross salary = Basic + HRA + Conveyance + DA + Other Allowances
Net Salary (Take away home) = Gross Salary - Canteen - PF(Employee) - ESI (Employee) - Welfare Fund - Others (Any other deduction as per company to company like advances, mobile etc..)
Hope it might help you..
Hemant Agarwal
From India, Faridabad
Dear Vijeta,
1 CTC : It includes all the payments ( as per terms of appointment) which are to be made on monthly,quarterly etc. basis. It is the total cost which is to be incurred by the company as ( Basic, HRA,Conveyance Allowance, Education allowance, Special Allowance etc or as the monthly salary structure + all the reimbursements as medical/traveling/entertainment/food coupens etc+ bonus+ gratuity+ employer share of ESI and PF or any other expenditure on the employee ie. free lunch/tea /insurance etc.
2.Gross Salary : It includes Employer share of PF /ESI or any other statutory payment.
From India, New Delhi
1 CTC : It includes all the payments ( as per terms of appointment) which are to be made on monthly,quarterly etc. basis. It is the total cost which is to be incurred by the company as ( Basic, HRA,Conveyance Allowance, Education allowance, Special Allowance etc or as the monthly salary structure + all the reimbursements as medical/traveling/entertainment/food coupens etc+ bonus+ gratuity+ employer share of ESI and PF or any other expenditure on the employee ie. free lunch/tea /insurance etc.
2.Gross Salary : It includes Employer share of PF /ESI or any other statutory payment.
From India, New Delhi
Dear Vijeta,
No fixed %age. Depends on company to company. We in our company take five heads of Gross Salary :
1 Basic
2 HRA
3 Con.Allowance
4 Edu.Allowance
5 Special Allowance
We take Basic 40% of gross
HRA 40% of Basic
Con. All. RS. 800/-fixed
Edu.All Rs. 200/- fixed
The difference of above four heads and gross is taken in Special Allowance.
Note : Basic must not be less than the minimum wage rate as applicable.
Regards
BR
From India, New Delhi
No fixed %age. Depends on company to company. We in our company take five heads of Gross Salary :
1 Basic
2 HRA
3 Con.Allowance
4 Edu.Allowance
5 Special Allowance
We take Basic 40% of gross
HRA 40% of Basic
Con. All. RS. 800/-fixed
Edu.All Rs. 200/- fixed
The difference of above four heads and gross is taken in Special Allowance.
Note : Basic must not be less than the minimum wage rate as applicable.
Regards
BR
From India, New Delhi
Dear Vijeta,
Gross salary includes those items which is the part of your salary slip. And CTC includes gross salary + PF (Employer)+Medical+LTA+Bonus and any other cost which is paid by company for whole year.
Regards,
Ramesh Pandey
From India, Patiala
Gross salary includes those items which is the part of your salary slip. And CTC includes gross salary + PF (Employer)+Medical+LTA+Bonus and any other cost which is paid by company for whole year.
Regards,
Ramesh Pandey
From India, Patiala
Dear Mr. Vijetha,
CTC stands for Cost to the Company. It involves all sorts of costs that are incurred in procuring an employee. Some part of it is paid to the employee in the form of Monthly paid and annually paid emoluments.Some part of it is obtained at the end of services like PF, Gratuity etc.,,
Coming to Percentages, you already came to know that the Percentage of various components of pay vary from company to company.
but P. F. contributes to 12%of the basic (Employee contribution), Whereas the employer's contribution is 13.61%.
From India, Bangalore
CTC stands for Cost to the Company. It involves all sorts of costs that are incurred in procuring an employee. Some part of it is paid to the employee in the form of Monthly paid and annually paid emoluments.Some part of it is obtained at the end of services like PF, Gratuity etc.,,
Coming to Percentages, you already came to know that the Percentage of various components of pay vary from company to company.
but P. F. contributes to 12%of the basic (Employee contribution), Whereas the employer's contribution is 13.61%.
From India, Bangalore
Hi Vijetha,
Making it very simple.
You have your earnings & deductions in your pay slip.
Your earnings is your gross
Company shares a % againts your employment as below
PF 12%
ESI 4.75% (Gross below 15000)
Insurance Premium (Gross above 15000)
However, you just pay the PF12% & ESI 1.75%.
Hence all your earnings/ gross + companies share comes to CTC.
I hope I am clear.
Regards
Gaurav Vedak
From India, Bangalore
Making it very simple.
You have your earnings & deductions in your pay slip.
Your earnings is your gross
Company shares a % againts your employment as below
PF 12%
ESI 4.75% (Gross below 15000)
Insurance Premium (Gross above 15000)
However, you just pay the PF12% & ESI 1.75%.
Hence all your earnings/ gross + companies share comes to CTC.
I hope I am clear.
Regards
Gaurav Vedak
From India, Bangalore
Hi, gross salary is Basic+HRA+CA and CTC includes your all allowances,bonus,PF ,reimbursements,leaves.
From India, Chandigarh
From India, Chandigarh
CTC means Cost to Company,The Cost which Spends totally on the employee.Which means ESi and PF(Statutory Deductions) Both Employee and Employer Deductions Should be Showm in CTC,wheather in gross the employer deductions is hidden factor.
From India, Hyderabad
From India, Hyderabad
Basic - 30% -40% of CTC
HRA - 30% - 60% of Basic
Medical - one basic per annum
Travelling Allowance - depends on company policy, but LTA = one basic per annum... but 6PL need to be availed or deducted
Special Allowance -
PF - 12% of basic of employee, 12% of basic of employer (8.33% towards EPS and 3.67% towarsd EPF)
ESI - not sure but probably 4.71% or 1.61%
Also i wouls like to know Basic is calculated acc. to gross salary and rest all components are calculated acc. to basic. IS it right?[/QUOTE] - YES
From India, Bangalore
HRA - 30% - 60% of Basic
Medical - one basic per annum
Travelling Allowance - depends on company policy, but LTA = one basic per annum... but 6PL need to be availed or deducted
Special Allowance -
PF - 12% of basic of employee, 12% of basic of employer (8.33% towards EPS and 3.67% towarsd EPF)
ESI - not sure but probably 4.71% or 1.61%
Also i wouls like to know Basic is calculated acc. to gross salary and rest all components are calculated acc. to basic. IS it right?[/QUOTE] - YES
From India, Bangalore
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Gross Salary(1).xls