HI ALL, THIS IS NEW CTC SCALE FOR INDUSTRIES RELATED. LET ME KNOW HOW IS IT. REGARDS, SHANKAR
From India, Hyderabad
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4From India, Hyderabad
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Thanks Shankar This will definitely help us to understand our salary and tax factors more conveniently. Thank you for the valuable effort. regards Anuradha
From India, Delhi
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From India, Delhi
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Hello Shankar Ravi,
I liked the posting you have made, but I am not clear on the concept of CCA & CON. Could you please highlight the same?
Also, I would like to mention that the Professional Tax is Rs. 200 throughout the year, except in February, where it is Rs. 300. It would be great if you could include this in the post.
Thanks,
Shriya Karve.
From India, Mumbai
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I liked the posting you have made, but I am not clear on the concept of CCA & CON. Could you please highlight the same?
Also, I would like to mention that the Professional Tax is Rs. 200 throughout the year, except in February, where it is Rs. 300. It would be great if you could include this in the post.
Thanks,
Shriya Karve.
From India, Mumbai
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Very good. But I have a suggestion. Please do not show the employer's contribution to EPF/ESI in the payslip. I agree that these are costs to the company, but showing it in the payslip will be interpreted as deducting the employer's share of contribution from the salary of employees, which is illegal.
Similarly, annual payments based on profits like Bonus (which is paid only to those whose salary does not exceed Rs 10,000) should also be avoided in the monthly payslip. Once it is shown, it becomes a commitment on the part of the employer.
I didn't understand the practice of adding 20% of the basic salary (I presume) as part of CTC and then showing 8.33% as a deduction. Please clarify.
Regards, Madhu.T.K
From India, Kannur
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Similarly, annual payments based on profits like Bonus (which is paid only to those whose salary does not exceed Rs 10,000) should also be avoided in the monthly payslip. Once it is shown, it becomes a commitment on the part of the employer.
I didn't understand the practice of adding 20% of the basic salary (I presume) as part of CTC and then showing 8.33% as a deduction. Please clarify.
Regards, Madhu.T.K
From India, Kannur
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CCA stands for City Compensation Allowance at 10% of the basic salary. Con. refers to Conveyance at 10% of the basic salary.
One more thing to note is that I am unsure if the P.T. slab has changed. To the best of my knowledge, the P.T. slab has been revised to start from Rs. 5001/-. Could you please confirm if this information is correct? If you have any updates, kindly inform me.
Thank you,
Shankar
From India, Hyderabad
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One more thing to note is that I am unsure if the P.T. slab has changed. To the best of my knowledge, the P.T. slab has been revised to start from Rs. 5001/-. Could you please confirm if this information is correct? If you have any updates, kindly inform me.
Thank you,
Shankar
From India, Hyderabad
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Mr. Madhu,
In the CTC scale, 20% of the bonus is calculated on the basic salary, and 11.73% shall be added to every month's salary. The remaining 8.33% (approximately one basic salary per year) shall be given once a year. Also, note that, apart from ESI & PT deductions, the remaining deduction shows as savings.
I hope you understand.
Regards, Shankar
From India, Hyderabad
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In the CTC scale, 20% of the bonus is calculated on the basic salary, and 11.73% shall be added to every month's salary. The remaining 8.33% (approximately one basic salary per year) shall be given once a year. Also, note that, apart from ESI & PT deductions, the remaining deduction shows as savings.
I hope you understand.
Regards, Shankar
From India, Hyderabad
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Hi Shankar, I was about to ask about what Madhu asked. I have gone through your reply but still it is not clear to me. Can you please elaborate about percentage for bonus (20 % - 8.33%...) - Hiten
From India, New Delhi
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From India, New Delhi
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Dear Mr. Shankar,
I am very sorry; I could not follow you. 20% and 8.33% are the maximum and the minimum bonus payable as per the Payment of Bonus Act. Any percentage of bonus above 8.33% will be decided only after considering the 'available surplus,' which in turn depends on the net profit as shown by the Profit & Loss account. How can an employee say that he will be able to pay a 20% bonus every year? Of course, 8.33% is a statutory bonus that has to be paid even if the company incurs a loss. Therefore, it is justifiable to show the amount of the minimum bonus as part of the remuneration to the employee. (I prefer not to use the term "Cost to Company" because there are many benefits to the company as well due to the employment of a worker.)
I did not mean to disturb your system, but I meant to say that showing the employer's share of contributions to EPF/ESI could be interpreted as deducting his own share from the salary, which is illegal. Above all, the practice of "CTC" itself is a game to attract poor candidates as it gives a good picture, but in reality, nothing actually materializes.
Regards,
Madhu.T.K
From India, Kannur
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I am very sorry; I could not follow you. 20% and 8.33% are the maximum and the minimum bonus payable as per the Payment of Bonus Act. Any percentage of bonus above 8.33% will be decided only after considering the 'available surplus,' which in turn depends on the net profit as shown by the Profit & Loss account. How can an employee say that he will be able to pay a 20% bonus every year? Of course, 8.33% is a statutory bonus that has to be paid even if the company incurs a loss. Therefore, it is justifiable to show the amount of the minimum bonus as part of the remuneration to the employee. (I prefer not to use the term "Cost to Company" because there are many benefits to the company as well due to the employment of a worker.)
I did not mean to disturb your system, but I meant to say that showing the employer's share of contributions to EPF/ESI could be interpreted as deducting his own share from the salary, which is illegal. Above all, the practice of "CTC" itself is a game to attract poor candidates as it gives a good picture, but in reality, nothing actually materializes.
Regards,
Madhu.T.K
From India, Kannur
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Dear Friend,
Basic: 55%
House Rental Allowance: 25%
City Compensation Allowance: 10%
Conveyance: 10%
Total (Gross): 100%
Company Contributions:
Bonus: 20% on basic
PF: 12% on basic (if basic is Rs. 6500/-, the company fixes Rs. 780/-)
ESI: 4.75% on basic
Total, called CTC: 100% + 36.75%
Employee Contributions:
PF: 12% on basic
ESI: 1.75% on basic
PT: depends on gross
Now, your doubt is that in 20% of the bonus, 11.73% shall be added to his salary (called advance bonus), i.e., 8.33% shall be deducted from every month's salary. The same may be given once a month. Here, the company has fixed the CTC and is not involved in any kind of payment modes.
Thank you,
Regards,
Shankar
From India, Hyderabad
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Basic: 55%
House Rental Allowance: 25%
City Compensation Allowance: 10%
Conveyance: 10%
Total (Gross): 100%
Company Contributions:
Bonus: 20% on basic
PF: 12% on basic (if basic is Rs. 6500/-, the company fixes Rs. 780/-)
ESI: 4.75% on basic
Total, called CTC: 100% + 36.75%
Employee Contributions:
PF: 12% on basic
ESI: 1.75% on basic
PT: depends on gross
Now, your doubt is that in 20% of the bonus, 11.73% shall be added to his salary (called advance bonus), i.e., 8.33% shall be deducted from every month's salary. The same may be given once a month. Here, the company has fixed the CTC and is not involved in any kind of payment modes.
Thank you,
Regards,
Shankar
From India, Hyderabad
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Employee Benefits.doc
CTC SALARY SLIP FORM.xls