HI ALL PLS ADVICE ME FOR A SIMPLE QUESTION 1. WHAT IS GROSS? 2. IS IT INCLUDING PF CONTRIBUTION OF EMPLOYEE OR EMPLOYEER? 3. OR BOTH?? AWAITING FOR RESPONSE. REGARDS, SUNITA SARKAR :P :P :P
Gross Salary is the agreed/committed compensation your Organisation agrees to pay on a monthly(periodic) basis aginst your services for that period.
1.gross salary = basic+ HRA+ trnasport+ other allowance.
2.Gross salary includes pf contribution of employee only.
3. employer contribution towards PF does not form a part of gross salary
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.
HRA 40 - 50% is exempted from Taxes, depends on class of city
CCA - 825/- is exempted from tax
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.
Hope you are doing good.
This is an example of what we follow in our company.
Gross is not what you get in hand, and it includes following components:
+Employees Contribution to PF
Therefore, Bonus and and employers contribution to PF is not included in the Gross salary.
Following are the components which are deducted from Gross and then we arrive at salary in hand or Net salary.
Net Salary = Gross salary - Employee's contribution to PF - Late time - (any other required deduction like ESI, Medical etc.)
and then finally to arrive at CTC:
+PF contribution of employer
I hope things are clear now....
Have a great weekend ahead
Gross salary contains your earning part. From company to companty the elements get changed. it does not have fixed format.
Following are the sample of Gross Salary
1.Basic + DA
3. Educational Allowance
4. Medical Allowance
5. House Rent Allowance
6. Special allowance
7. Pertol Allowance
8. Lunch Allowance
PF does not included in gross salary but it is consider in CTC (Cost to Company).
PF is not your monthly in hand earning , but it is benefit provided by employer to emplyee. At the time of leaving the company you can withdraw the PF. It is just like deposits.
Thanks & Regards
Amruta : :lol: :lol: :lol: :lol: :lol:
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