Sir/Mam What’s the correct format of designing CTC...... can u please give me 1 sample of that. Thanks Purvi Badjatya
From India, Indore
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From India, Indore
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Hi Purvi,
The contents of the salary breakup may be as follows; you can prepare it according to your own convenience. HRA should be 40 to 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. Anything exceeding this will be covered under Mediclaim, subject to 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 known as CTC.
I hope this information helps you in preparing the required details.
Regards,
Amit Seth.
From India, Ahmadabad
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508The contents of the salary breakup may be as follows; you can prepare it according to your own convenience. HRA should be 40 to 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. Anything exceeding this will be covered under Mediclaim, subject to 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 known as CTC.
I hope this information helps you in preparing the required details.
Regards,
Amit Seth.
From India, Ahmadabad
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Dear,
First of all, you should know the minimum wages prevailing in your state for preparing the CTC.
The Basic salary as per your company policy depends on different grades such as executives, assistants, managers.
CTC can be calculated as: monthly or annually
Basic = 3500 (monthly) or 3500*12 (Months)
HRA 40% to 50% of Basic
Conveyance allowance = 15% or 20% of Basic or transport allowance = can be a fixed amount.
Special Allowance or children's educational allowance = any amount so that after deductions net salary comes to 5% to 15% of conveyance allowance
Total of all these = Gross Salary
Basic * 13.61% = PF employer's contribution
If gross salary is less than or equal to Rs. 10,000 = Gross salary * 4.75% ESI employer's contribution
LTA OR Medical Reimbursement = Basic * 15% or 20% payable annually
Bonus depends on your company policy = It can be basic * 15% or 20% payable annually
Gratuity payable after five years of continuous service calculated yearly
Any reimbursements such as mobile, washing, mediclaim can be added.
Gross + employer's contribution (PF or ESI) + LTA or Medical + Bonus + gratuity + any reimbursements = CTC
Thanks
Saurabh
Acknowledge(0)Amend(0)
First of all, you should know the minimum wages prevailing in your state for preparing the CTC.
The Basic salary as per your company policy depends on different grades such as executives, assistants, managers.
CTC can be calculated as: monthly or annually
Basic = 3500 (monthly) or 3500*12 (Months)
HRA 40% to 50% of Basic
Conveyance allowance = 15% or 20% of Basic or transport allowance = can be a fixed amount.
Special Allowance or children's educational allowance = any amount so that after deductions net salary comes to 5% to 15% of conveyance allowance
Total of all these = Gross Salary
Basic * 13.61% = PF employer's contribution
If gross salary is less than or equal to Rs. 10,000 = Gross salary * 4.75% ESI employer's contribution
LTA OR Medical Reimbursement = Basic * 15% or 20% payable annually
Bonus depends on your company policy = It can be basic * 15% or 20% payable annually
Gratuity payable after five years of continuous service calculated yearly
Any reimbursements such as mobile, washing, mediclaim can be added.
Gross + employer's contribution (PF or ESI) + LTA or Medical + Bonus + gratuity + any reimbursements = CTC
Thanks
Saurabh
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Salary breakup format.xls
Salary & Compensation Guidelines.zip