About CTC Detail

Hi Everybody!

This is Partho.I want to know about the detail CTC components.The CTC figure which is reflected on the offer letter is inclusive of the PF(Employer contribution) and ESI (Employer contribution) along with Employee ? What is the funda of TDS deduction? please let me as early as possible.

Thanks
Partho

Hi Partho,

The components of the salary break up may be as below, you can prepare it at the suitability of your own. HRA would be 40 to 60% of basic.


Basic
HRA
TA
Other Allowance
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.

Yes.. PF and ESI contribution from employer side is included in the CTC..
As per govt. Tax rules a ceiling has been fixed separately for both the genders..
For Male- Those who are earning more than 1.1 laks/annum have to return taxes.. and
For Female - this is 1.5 lacs/annum..

Hope it would help you to prepare the same at your end..


Regards,

Amit Seth.

Hi Partho,

The components of the salary break up may be as below, you can prepare it at the suitability of your own. HRA would be 40 to 60% of basic.


Basic
HRA
TA
Other Allowance
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.

Yes.. PF and ESI contribution from employer side is included in the CTC..
As per govt. Tax rules a ceiling has been fixed separately for both the genders..
For Male- Those who are earning more than 1.1 laks/annum have to return taxes.. and
For Female - this is 1.5 lacs/annum..

Hope it would help you to prepare the same at your end..


Regards,

Amit Seth.