I don't know anything about ctc calculation tomorrow my boss give me acalculation sheet for en employee the sheet describe Total monthly ctc 24495
In hand salary Basic 11000, hra 5500, conveyance 3000, medical 1500, other 1500 total in hand salary 22500. is this correct? What is the actual procedure to know ctc
Usually the calculation of the CTC is as follows..
(1)Basic :35-40% of gross salary
HRA - 40% of Basic
Conveyance : Rs .800 (Fixed) -tax limits
Medical :Rs. 1250 (Fixed) - tax limits
Special allowance - Balancing amount
Total of (1) constitutes - Gross Fixed
(2) Gross benefits like - PF - 12% of Basic & DA
Gratuity :5% of basic & DA
Total of (2) constitutes - Gross Benefits
Sum total of (1) & (2) constitutes CTC
The calculation of CTC given by you is good but I need clarification on some points pl.
1) The %age of HRA, medical & conveyance etc. varies according to grades such as Assistants, Officers, Sr. Officers, Managers etc., in such cases what would be the %age of basic.
2) Some companies do not provide benefits like LTA, Lunch, Insurance etc., and in such cases how to calculate CTC.
3) Will it be right to consider Gratuity as part of CTC because any employee becomes entitled for gratuity after continuous service of 05 years and if he leaves company earlier to this period, he will lose this portion of his salary.
IT INCLUDES YOUR
A . MONTHLY PAYAMENT IN CASH i.e. BASIC PAY + DEARNESS ALLOWANCE (IF ANY) + HRA + CONVEYANCE ALLOWANCE + MEDICAL ALLOWANCE + LTA + OTHER CASH ALLOWANCES
B. GRATUITY PROVISION + EMPLOYER'S CONTRIBUTION TO PF (icluding administrative & other charges to PF) + EMPLOYER'S CONTRIBUTION TO ESI + FREE MEALS DURING OFFICE HOURS + ANY OTHER FREE FACILITIES ALLOWED BY EMPLOYER DURING THE COURSE OF EMPLOYEE WHICH CAN BE CALCULATED IN MONETARY FORM.
COST TO THE COMPANY FOR A EMPLOYEE IS A + B. WHEREAS THE EMPLOYEE WILL GET TAKE HOME SALARY AS "A" MINUS CONTRINUTION TO EPF & ESI.
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