Friends
Kindly guide me in calculating the Gross salary
Is it inclusive of the Performance Incentive+PF employer deduction +Mediclaim Policy +Gratuity???
If it is not inclusive of the Gross Salary then what is the minimum basic salary to be maintained ( Is it 35% -40%)
Please reply urgent.
Hameetha
From India, Madras
3Kindly guide me in calculating the Gross salary
Is it inclusive of the Performance Incentive+PF employer deduction +Mediclaim Policy +Gratuity???
If it is not inclusive of the Gross Salary then what is the minimum basic salary to be maintained ( Is it 35% -40%)
Please reply urgent.
Hameetha
From India, Madras
Hi Hameetha,
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 or 50% of basic.
Basic
HRA 40 - 50% is exempted from Taxes, depends on class of city
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
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.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Hope it must helped you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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 or 50% of basic.
Basic
HRA 40 - 50% is exempted from Taxes, depends on class of city
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
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.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Hope it must helped you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
Kindly reply to my query on the difference between CTC and Gross SAlary
pLEASE CHECK WHETHER THE FOLLOWING IS CURRENT
Gross salary = Basic+DA+HRA+Spl allowance+Coveyance+ANY OTHER ALLOWANCES
Does the Gross salary include MEDICLAIM POLICY COVERAGE+PF EMPLOYER CONTRIBUTION+GRATUITY+PERFORMANCE INCENTIVE
Basic salary= 35-40% of Gross
Please correct me if i am wrong.
Kindly reply at the earliest
Regards
Hameetha
From India, Madras
pLEASE CHECK WHETHER THE FOLLOWING IS CURRENT
Gross salary = Basic+DA+HRA+Spl allowance+Coveyance+ANY OTHER ALLOWANCES
Does the Gross salary include MEDICLAIM POLICY COVERAGE+PF EMPLOYER CONTRIBUTION+GRATUITY+PERFORMANCE INCENTIVE
Basic salary= 35-40% of Gross
Please correct me if i am wrong.
Kindly reply at the earliest
Regards
Hameetha
From India, Madras
Dear Hameetha,
CTC refers to Cost to Company.. it includes all the cost which is company paying directly or indirectly to the employee.. Where as Gross salary refers to the amount which is being given given to an employee before deducting the PF, ESI and other deductions.
Yes, Gross salary = Basic+DA+HRA+Spl allowance+Conveyance+ANY OTHER ALLOWANCES.
No MEDICLAIM POLICY COVERAGE+PF EMPLOYER CONTRIBUTION+ GRATUITY+PERFORMANCE INCENTIVE are not a part of Gross Salary.. These are part of CTC..
There is no any rule for the Basic Salary, but yes keeping it atleast between 30-40% is mostly in the system.
Regards,
Amit Seth.
From India, Ahmadabad
CTC refers to Cost to Company.. it includes all the cost which is company paying directly or indirectly to the employee.. Where as Gross salary refers to the amount which is being given given to an employee before deducting the PF, ESI and other deductions.
Yes, Gross salary = Basic+DA+HRA+Spl allowance+Conveyance+ANY OTHER ALLOWANCES.
No MEDICLAIM POLICY COVERAGE+PF EMPLOYER CONTRIBUTION+ GRATUITY+PERFORMANCE INCENTIVE are not a part of Gross Salary.. These are part of CTC..
There is no any rule for the Basic Salary, but yes keeping it atleast between 30-40% is mostly in the system.
Regards,
Amit Seth.
From India, Ahmadabad
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