CTC Calculation - Basic Pay
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CTC Calculation - Basic Pay

hunk9858 Started The Discussion:

Dear Members

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

pon1965 - Member Since: May 2009
restrict conveyance to Rs.800/- p.m (I.T. exempted) and medical - Rs.1250/- p.m. (I.T.exempted on production of bills). pon

sdas_80 - Member Since: Oct 2006
Dear Member,

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
Lunch
Insurance
LTA
Total of (2) constitutes - Gross Benefits

Sum total of (1) & (2) constitutes CTC

Regards
Sunil

bharathi1990 - Member Since: May 2011
Hi, Sunil is correct but gratuity will 4.81%. Then Deduct professional tax and income tax according to the prescribed slabs.

niteshajmera - Member Since: May 2011
Dear Maestros, Pls make CTC more clear and ellobrate with example so that it will be easy to understand each and every thing clearly. Thanks and Regards Nitesh Ajmera

vineetpandey88@yahoo.com - Member Since: May 2011
Calculation of CTC is right but you have to check with formula given by Sdas that is the calculation.

smitavaity - Member Since: Feb 2008
ctc is the cost to company and includes all other components like LTA, medical, pf , fuel reimbursement, books and periodicals etc..

chandu.dini - Member Since: Nov 2009
Thanks Bharathi, I didn’t know the calculation of Gratuity through Percentage wise.

C S SHUKLA - Member Since: May 2011
Dear Mr. Sunil,

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.

Regards.

CS SHUKLA

nareshrateria1959 - Member Since: May 2011
CTC is nothing but your COST TO THE COMPANY.

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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