Dear all,
I have been asked to provide the current CTC in a company. Could you please clarify what CTC means and what it includes? Additionally, is a new employer more inclined towards a higher or lower CTC? Why would they inquire about that instead of the gross package or take-home salary?
Thank you.
From India, Coimbatore
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2I have been asked to provide the current CTC in a company. Could you please clarify what CTC means and what it includes? Additionally, is a new employer more inclined towards a higher or lower CTC? Why would they inquire about that instead of the gross package or take-home salary?
Thank you.
From India, Coimbatore
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CTC is Cost to Company and CTC is always the annual package..CTC is always the gross that company gives you it includes PF, Gratuity and other deductions..CTC is not in hand salary
From India, Pune
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From India, Pune
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Hi Raj,
The contents of the salary break-up are as follows. You can prepare it according to your convenience. HRA would be 50% or 60% of the basic salary.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement per Month
- Gross Per Month = Sum of all the above
- Gross Per Annum = 12 * Gross/Month
- PF Contribution = 12% of Basic/Annum
- ESI Contribution = 4.75% of Gross/Annum
- Medical = The mediclaim facility provided to employees not covered under ESI, as the maximum ceiling for ESI is 10,000/Month. Any amount exceeding this will be covered under Mediclaim or depending on the company policy.
- Ex-Gratia/Bonus = A fixed amount as a bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also referred to as CTC.
I hope this clarifies everything for you. If you have any queries, feel free to ask.
Regards,
Amit Seth
From India, Ahmadabad
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The contents of the salary break-up are as follows. You can prepare it according to your convenience. HRA would be 50% or 60% of the basic salary.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement per Month
- Gross Per Month = Sum of all the above
- Gross Per Annum = 12 * Gross/Month
- PF Contribution = 12% of Basic/Annum
- ESI Contribution = 4.75% of Gross/Annum
- Medical = The mediclaim facility provided to employees not covered under ESI, as the maximum ceiling for ESI is 10,000/Month. Any amount exceeding this will be covered under Mediclaim or depending on the company policy.
- Ex-Gratia/Bonus = A fixed amount as a bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also referred to as CTC.
I hope this clarifies everything for you. If you have any queries, feel free to ask.
Regards,
Amit Seth
From India, Ahmadabad
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Thank you, Mithun.
By the way, the company I am working for does not provide Gratuity, PF, etc., but does cover expenses for food, accommodation, and TA charges. Would these be included in CTC? What is the typical CTC for an entry-level professional in the manufacturing industry?
From India, Coimbatore
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By the way, the company I am working for does not provide Gratuity, PF, etc., but does cover expenses for food, accommodation, and TA charges. Would these be included in CTC? What is the typical CTC for an entry-level professional in the manufacturing industry?
From India, Coimbatore
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(Fact Checked)-The items such as food, accommodation, and TA charges should be included in the CTC. The standard CTC for entry-level professionals in manufacturing varies. (1 Acknowledge point)
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It really depends , i would say that its always better to talk to your HR and your finance department .They will give you the best information
From India, Pune
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From India, Pune
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Dear Amit and Mithun,
I need clarification. I was working outside India and I was paid only the basic salary + bonus. Food and accommodation were provided free of cost. Except for this, there is no PF, ESI, or other allowances. I also don't have a proper salary slip. In this case, how should I calculate my CTC?
Thanks.
From India, Coimbatore
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I need clarification. I was working outside India and I was paid only the basic salary + bonus. Food and accommodation were provided free of cost. Except for this, there is no PF, ESI, or other allowances. I also don't have a proper salary slip. In this case, how should I calculate my CTC?
Thanks.
From India, Coimbatore
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Hi Raj,
When providing your CTC, you may clarify that your CTC includes accommodations as well as food expenses. However, you must provide some relevant proof of the same as it may be asked by the interviewer.
Regards,
Amit Seth
From India, Ahmadabad
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When providing your CTC, you may clarify that your CTC includes accommodations as well as food expenses. However, you must provide some relevant proof of the same as it may be asked by the interviewer.
Regards,
Amit Seth
From India, Ahmadabad
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Hi Rajkumar_Victor,
I may perhaps be able to simplify it further.
CTC is an abbreviated form of 'Cost to the Company'. It means the total of all that the Company is spending on you. But 'Gross' is the total salary and benefits that you draw from a Company.
Companies over the years adopted the CTC concept so that they could compute the total money spent on an employee. So, CTC includes every expense (basic salary + allowances and non-official reimbursements) on you that you can imagine (except, of course, official expenses).
To calculate your CTC for your job abroad, you need to add your basic (i.e. base pay) and (fixed) bonus first. Then you have to calculate a money value for the accommodation, meals provided by the Company. (Think practically what you would have paid for the same accommodation and food if you had to pay for it) Add all these, and you will arrive at your CTC value.
Rahul
09968270580
From India, New Delhi
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I may perhaps be able to simplify it further.
CTC is an abbreviated form of 'Cost to the Company'. It means the total of all that the Company is spending on you. But 'Gross' is the total salary and benefits that you draw from a Company.
Companies over the years adopted the CTC concept so that they could compute the total money spent on an employee. So, CTC includes every expense (basic salary + allowances and non-official reimbursements) on you that you can imagine (except, of course, official expenses).
To calculate your CTC for your job abroad, you need to add your basic (i.e. base pay) and (fixed) bonus first. Then you have to calculate a money value for the accommodation, meals provided by the Company. (Think practically what you would have paid for the same accommodation and food if you had to pay for it) Add all these, and you will arrive at your CTC value.
Rahul
09968270580
From India, New Delhi
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Thanks, Mr. Amit and Mr. Rahul.
In short, I have calculated my CTC as follows:
CTC = Basic + Bonus + Food + Accommodation + Other expenses (like flight charges, training expenses, etc).
Now I got a clear idea. :)
From India, Coimbatore
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In short, I have calculated my CTC as follows:
CTC = Basic + Bonus + Food + Accommodation + Other expenses (like flight charges, training expenses, etc).
Now I got a clear idea. :)
From India, Coimbatore
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Sir, I think ESI Contribution = 1.75% of Gross/Annum, and 4.75% is the Employer contribution. Am I correct?
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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(Fact Checked)-The user is correct. As per the latest rules, ESI Contribution for employees is 1.75% of Gross/Annum, while 4.75% is the Employer's contribution. (1 Acknowledge point)
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CTC SALARY SLIP FORM.xls
Salary & Compensation Guidelines.zip
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(Fact Checked)-The user's reply is correct. CTC stands for Cost to Company, representing the total cost incurred by the company for an employee, including benefits like PF and gratuity. CTC is indeed the gross package and not the take-home salary. (1 Acknowledge point)