Just wanna know about Salary Break-ups! Are there any standard break-up rules that needs to be followed. Anyone there who can answer this?
From India, Hyderabad
From India, Hyderabad
Hi..
CTC stands for cost to the company i.e the total expenditure of the company towards a particular employee. It includes each and every cost in terms of money and materials, some of the components are-
Gross Salary
Bonus
PF Contribution from employer side
ESI or Medical contribution from Employer side
Cell Phone Allowance
Hard furnishing goods
Food coupons
The contents of the salary break up is as below, you can prepare it at the
suitability of your own.
HRA would be50 or 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
Annual Fixed Gross Cost= Gross/Annum+PF+ESI+Med
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Total Cost = AFGC + EX Gratia/Bonus
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.
Regards,
Amit Seth.
From India, Ahmadabad
496CTC stands for cost to the company i.e the total expenditure of the company towards a particular employee. It includes each and every cost in terms of money and materials, some of the components are-
Gross Salary
Bonus
PF Contribution from employer side
ESI or Medical contribution from Employer side
Cell Phone Allowance
Hard furnishing goods
Food coupons
The contents of the salary break up is as below, you can prepare it at the
suitability of your own.
HRA would be50 or 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
Annual Fixed Gross Cost= Gross/Annum+PF+ESI+Med
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Total Cost = AFGC + EX Gratia/Bonus
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.
Regards,
Amit Seth.
From India, Ahmadabad
Hi Amit, can u plz explain the below list Annual Fixed Gross Cost= Gross/Annum+PF+ESI+Med EX-Gratia/Bonus = A fixed amount as Bonus Annual Total Cost = AFGC + EX Gratia/Bonus Regards Prativa
From India, New Delhi
From India, New Delhi
Hi Prativa..
Dont getting what you require to know, it is clearly written..
Regarding EX-Gratia/Bonus, most of the corporates fix a gross amount as Ex-Gratia.. and that is been paid during the festival Diwali at pro-rate basis.
means it is paid on the basis of duration of service.. or it is been paid at the separation from organisation also..
Annual total cost is the total amount that been spend over the employment...
Regards,
Amit Seth.
From India, Ahmadabad
Dont getting what you require to know, it is clearly written..
Regarding EX-Gratia/Bonus, most of the corporates fix a gross amount as Ex-Gratia.. and that is been paid during the festival Diwali at pro-rate basis.
means it is paid on the basis of duration of service.. or it is been paid at the separation from organisation also..
Annual total cost is the total amount that been spend over the employment...
Regards,
Amit Seth.
From India, Ahmadabad
Hi Amit,
Could you plz help me out in formulating a salary structure based on the CTC provided to an employee to minimise the tax burden on the employee.
(For employees who generall fall into tax brackets).
Regards.
Sashmita
From India, Delhi
Could you plz help me out in formulating a salary structure based on the CTC provided to an employee to minimise the tax burden on the employee.
(For employees who generall fall into tax brackets).
Regards.
Sashmita
From India, Delhi
Hi Sashmita,
The salary break-up which i have shown above includes so many components which are tax exempted.. like..
HRA is exempted from Taxes,
Medical Reimbursement of Rs. 1250/- per month is exempted
CCA of rupees 825/- per month is exmpted
On mobile allowance also there is certain tax exemption
Apart from this you may add some more, which are exempted from taxes..
Education allowance
News paper n magazine allowance
Petrol allowance upto a certain limit
Driver allowances
Hope it will help you to frame the salary structure at your end..
Regards,
Amit Seth.
From India, Ahmadabad
The salary break-up which i have shown above includes so many components which are tax exempted.. like..
HRA is exempted from Taxes,
Medical Reimbursement of Rs. 1250/- per month is exempted
CCA of rupees 825/- per month is exmpted
On mobile allowance also there is certain tax exemption
Apart from this you may add some more, which are exempted from taxes..
Education allowance
News paper n magazine allowance
Petrol allowance upto a certain limit
Driver allowances
Hope it will help you to frame the salary structure at your end..
Regards,
Amit Seth.
From India, Ahmadabad
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