Hi all,
I have recently joined a company where I have been offered a CTC of 2.4 Lac p.a. My last CTC with another employer was 2.4 Lac p.a., and I was getting 18k in hand. So after much negotiation and discussion, my new employer agreed to a CTC of 2.4 and assured me of receiving 18k in hand. However, upon reviewing my salary structure in the offer letter, I am unsure if this is the case. I have attached the offer letter for your reference. Could someone please guide me on whether the provided salary structure is accurate?
Thank you for your time.
From India, Pune
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1I have recently joined a company where I have been offered a CTC of 2.4 Lac p.a. My last CTC with another employer was 2.4 Lac p.a., and I was getting 18k in hand. So after much negotiation and discussion, my new employer agreed to a CTC of 2.4 and assured me of receiving 18k in hand. However, upon reviewing my salary structure in the offer letter, I am unsure if this is the case. I have attached the offer letter for your reference. Could someone please guide me on whether the provided salary structure is accurate?
Thank you for your time.
From India, Pune
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I am not satisfied with such type of CTC because, as per knowledge, CTC is divided as following:
A- Fixed monthly salary (which is known as salary as well) parts are as given below:
Basic - 45% to 55% of CTC (but must be equal to or greater than the minimum wages of the area)
HRA - 40%/50% of basic (Depends on the city)
Conveyance - Rs. 1600 fixed (As per IT rules for tax exemption)
Special Allowance - Rest amount
Total Salary - (Basic + HRA + Conveyance + Special Allowance) may be known as salary
B- Company Contribution:
EPF - 12% of basic
ESIC - 4.75% of Total Salary (if the Total monthly salary is equal to or less than Rs. 15000/- per month)
Gratuity - 4.81% of basic (but cannot be counted in CTC because it's a benefit provided to employees after completion of 5 years. If you are adding it to monthly CTC, then an employee leaving before 5 years is eligible for the Gratuity amount.)
Bonus - (similar to Gratuity, Bonus is also not counted as part of CTC because it cannot be paid monthly. The percentage of Bonus is decided after successive years of benefits. But as per the new rule, you have to check the minimum wages or Rs. 7000/-, whichever is higher. Therefore, the amount of bonus cannot be decided.)
Total Company Contribution - (EPF + ESIC)
C- Monthly/Annual Reimbursement:
Medical Reimbursement - Rs. 1250/PM (Monthly)
LTA - 8.33% of Basic (Annual)
Children Education Allowance - Rs. 100 per month (Valid only for 2 Children)
Performance Incentive - (Monthly/Annual)
Variable Pay - (Annual)
Total CTC = (A + B + C)
From India, Rudarpur
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A- Fixed monthly salary (which is known as salary as well) parts are as given below:
Basic - 45% to 55% of CTC (but must be equal to or greater than the minimum wages of the area)
HRA - 40%/50% of basic (Depends on the city)
Conveyance - Rs. 1600 fixed (As per IT rules for tax exemption)
Special Allowance - Rest amount
Total Salary - (Basic + HRA + Conveyance + Special Allowance) may be known as salary
B- Company Contribution:
EPF - 12% of basic
ESIC - 4.75% of Total Salary (if the Total monthly salary is equal to or less than Rs. 15000/- per month)
Gratuity - 4.81% of basic (but cannot be counted in CTC because it's a benefit provided to employees after completion of 5 years. If you are adding it to monthly CTC, then an employee leaving before 5 years is eligible for the Gratuity amount.)
Bonus - (similar to Gratuity, Bonus is also not counted as part of CTC because it cannot be paid monthly. The percentage of Bonus is decided after successive years of benefits. But as per the new rule, you have to check the minimum wages or Rs. 7000/-, whichever is higher. Therefore, the amount of bonus cannot be decided.)
Total Company Contribution - (EPF + ESIC)
C- Monthly/Annual Reimbursement:
Medical Reimbursement - Rs. 1250/PM (Monthly)
LTA - 8.33% of Basic (Annual)
Children Education Allowance - Rs. 100 per month (Valid only for 2 Children)
Performance Incentive - (Monthly/Annual)
Variable Pay - (Annual)
Total CTC = (A + B + C)
From India, Rudarpur
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Dear Vipre,
What do you actually expect from this forum as a senior contributing member? If you are not happy with the offer, you can reject it and make your own decision. Learned members are not compelled to accept it. This forum will help members in case of any disputes, doubts, or when seeking advice on labor laws. Your case is entirely different. Individual choices vary from one another.
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
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What do you actually expect from this forum as a senior contributing member? If you are not happy with the offer, you can reject it and make your own decision. Learned members are not compelled to accept it. This forum will help members in case of any disputes, doubts, or when seeking advice on labor laws. Your case is entirely different. Individual choices vary from one another.
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
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Salary structure CTC 15000.xlsx
Offer letter.pdf
Sample Internship Offer Letter.doc