how to calculate the CTC
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how to calculate the CTC

MOONSKY Started The Discussion:

Please provide information about how to calculate the CTC. regards Satish Kumar Yadav

richrachna - Member Since: Oct 2005
Hi Satish,

Plz find below the Breakup Part in one's CTC:-

Basic= 40% of CTC(varry from 30% to 40% from company to company)
HRA= 50% of Basic (for Metros) and 40% of Basic(for rest part)
Convayance Allow
Medical Allow
Special Allow
Other Allow

Summing all above gives Gross Salary
Further If Company gives their contribution as PF ,Gratuity , Superannuation then adding these to gross becomes CTC ie. Cost to Company.

Hope you got your question answered!!!!

Regards
Rachna Sinha

Monarchl - Member Since: May 2006
Hi Satish,

CTC is actually the total Cost to Company and varies depending on individual company's philosohy regarding compensation positioning.
Some companies do calculate the benefits given to staff also under the term of CTC while certain companies keep those separate. It depends on company how they want to articulate it, but primarily CTC comprises of -

Annual Base Salary - In Indian context, , the term "Base salary" is generally construed as "Basic" salary, while in European context, there is only the Base salary and no other "cash allowances". You might like to keep this in mind while designing the structure

Cash Allowances (Both monthly +Annual) - Includes components like HRA,Conveyance,LTA,Spl Allowance,CCA etc. There are NO mandated heads which need to be necessary part of this.

Annual Guaranteed Cash - Is a summation of Annual Base salary + Cash Allowances as mentioned above

Annual Total Cash - Is the addition of Annual Guaranteed Cash + Variable Pay/Sales Incentive/Profit Sharings

Annual Total Remuneration - Annual Total Cash + Non cash benefits like Loans/Car/Petrol/maintenance/Driver/Club Membership/Housing/Insurance premium etc

CTC would be the sum of Annual Total Remuneration given above + retirals like Gratuity/PF/Superannuation costs added to the same

M.Peer Mohamed Sardhar - Member Since: Jan 2007
Dear Friend,

Kindly click on the following link, it will give you some required information,

http://www.citehr.com/search_new.php?q=CTC&submit=Go

Pls let me know was this information useful,,

If not let me try out more & give information,,,,

In CiteHR you will get A to Z information on HRů..

Regards

M.Peer Mohamed Sardhar
093831 93832

nandishsheregar - Member Since: Aug 2007
i am uploading a file used by me. hope this will help you


Attached FilesProvided by community member nandishsheregar. Join us to learn and grow with your peers.
File Type: xls ctc_184.xls (18.0 KB, 1974 views)
deepikankur - Member Since: Jan 2008
Hi Can any of you help me how to calculate Variable pay for Managers in MAnufacturing industry. THanks

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