I have been asked to give the current CTC in a company. Please clarify what is CTC means and what it includes?
Whether a new employer likes CTC to be more or less? What for he is asking that instead of gross package or take home salary?
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Mobile Reimbursement / 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 an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
I need a clarification. I was working outside India and I was paid only the basic salary + bonus. Food and accomodation was provided free of cost. Except this, there is no PF or ESI or other allowances. I also dont have a proper salary slip. In this case, how should i calculate my CTC.
I may perhaps be able to simplify for you further.
CTC is an abbreviated form of 'Cost to the Company'. It means the total of all that the Company is spending on you. But 'Gross' is the total salary and benefits that you draw from a Company.
Companies over the years adopted the CTC concept so that they could compute the total money spent on an employee. So, CTC includes every expense (basic salary + allowances and non-official reimbursements) on you that you can imagine (except, of course, official expenses).
To calculate your CTC for your job abroad, you need to add your basic (i.e. base pay) and (fixed) bonus first. Then you have to calculate a money value for the accommodation, meals provided by the Company. (Think practically what you would have paid for the same accommodatin and food if you had to pay for it) Add all these and you will arrive at your CTC value.
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