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
16th May 2011 From India, Delhi

restrict conveyance to Rs.800/- p.m (I.T. exempted) and medical - Rs.1250/- p.m. (I.T.exempted on production of bills). pon
16th May 2011 From India, Lucknow
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
16th May 2011 From India, Bangalore
Hi, Sunil is correct but gratuity will 4.81%. Then Deduct professional tax and income tax according to the prescribed slabs.
16th May 2011 From India, Madras
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
16th May 2011 From India, Bangalore
Calculation of CTC is right but you have to check with formula given by Sdas that is the calculation.
17th May 2011 From India, Mumbai
ctc is the cost to company and includes all other components like LTA, medical, pf , fuel reimbursement, books and periodicals etc..
17th 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
17th May 2011 From India, Lucknow
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.
17th May 2011 From India, Coimbatore
Hi every one,
Dont get confused.
Salary calculation per annum
1.Basic will be 40%of ctc
2.HRA will be 50%(50% for metropolitan/40%for rural) of basic.
3.conveyance will be Standard 9600
4.Lunch allowance will be 12000(if ctc s below 3.6L)/24000(if ctc is equal and above 3.6L)
5.LTA will be 12000(if ctc s below 3.6L)/25000(if ctc is equal and above 3.6L)
6.Pf will be 12% of basic
7.Gratuity will be 4.81% of basic
8.Speciall allowance is the balance amount.
Example:Per annum
ctc basic hra medical conveyanc speciall gratutiy Lunch LTA Pf
562500 225000 112500 15000 9600 113577.5 10822.5 24000 25000 27000
I hope now you all will be clear
17th May 2011 From India, Madras

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