Hello to all,
I am Sravanthi, working as an HR executive in a software company. I want to know how gross salary is calculated from the CTC. For example: 2.4 LPA. Please explain the calculation only in the case of the gross salary as I am in great confusion.
Thanks
From India, Hyderabad
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1I am Sravanthi, working as an HR executive in a software company. I want to know how gross salary is calculated from the CTC. For example: 2.4 LPA. Please explain the calculation only in the case of the gross salary as I am in great confusion.
Thanks
From India, Hyderabad
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Hi Shravanthi,
Are you looking for the breakdown of CTC and Gross? I need some more details on what other benefits the company is offering. For example, PF, ESI, Medical Insurance, LTA, and others, because CTC is calculated based on all the benefits offered to the employee. :)
From India, Bangalore
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Are you looking for the breakdown of CTC and Gross? I need some more details on what other benefits the company is offering. For example, PF, ESI, Medical Insurance, LTA, and others, because CTC is calculated based on all the benefits offered to the employee. :)
From India, Bangalore
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Hi,
Example:
CTC is 25000 per month.
Basic = 50% of CTC.
HRA = 40% of Basic.
Conveyance = 800 (fixed in this example).
Medical Allowance = 1250 (fixed in this example).
Company contribution of PF = 12% of Basic.
Special Allowance = Balancing Figure.
Basic = 12500.
HRA = 5000.
Conveyance = 800.
Medical Allowance = 1250.
Company contribution of PF = 1500.
Special Allowance = 3950.
Gross Salary = 23500 (company contribution of PF is subtracted as it is a benefit to the employee and not shown in the payslip).
Employee PF contribution = 1500.
PT (as per the slab of the state) = 200.
Net Salary = 21800.
Hope it helps you.
Regards,
Chinmayi
From India, Bangalore
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Example:
CTC is 25000 per month.
Basic = 50% of CTC.
HRA = 40% of Basic.
Conveyance = 800 (fixed in this example).
Medical Allowance = 1250 (fixed in this example).
Company contribution of PF = 12% of Basic.
Special Allowance = Balancing Figure.
Basic = 12500.
HRA = 5000.
Conveyance = 800.
Medical Allowance = 1250.
Company contribution of PF = 1500.
Special Allowance = 3950.
Gross Salary = 23500 (company contribution of PF is subtracted as it is a benefit to the employee and not shown in the payslip).
Employee PF contribution = 1500.
PT (as per the slab of the state) = 200.
Net Salary = 21800.
Hope it helps you.
Regards,
Chinmayi
From India, Bangalore
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Hi Shravanti,
CTC means Cost to Company that a company pays or is liable to pay to an employee in each financial year. The components are monthly, and some are yearly like Bonus, LTA, Medical, etc. Some also add medical on monthly basis.
Continuing from the above that Chinmayi has written, you will need to check if the provision for Bonus is there or not in your organization because companies refer to the salary as CTC but actually, it is the Gross, and they pay Bonus during Diwali in the form of Cash. Alternatively, the total salary is sometimes divided into 13 parts, wherein one part is the Bonus.
Hope this helps you to understand.
Regards,
Lalita
From India, Mumbai
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CTC means Cost to Company that a company pays or is liable to pay to an employee in each financial year. The components are monthly, and some are yearly like Bonus, LTA, Medical, etc. Some also add medical on monthly basis.
Continuing from the above that Chinmayi has written, you will need to check if the provision for Bonus is there or not in your organization because companies refer to the salary as CTC but actually, it is the Gross, and they pay Bonus during Diwali in the form of Cash. Alternatively, the total salary is sometimes divided into 13 parts, wherein one part is the Bonus.
Hope this helps you to understand.
Regards,
Lalita
From India, Mumbai
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