Dear Every One, I think every think is right but the calculation of Gratuity(Monthly Rated Employees) is as follows:- I am wrong please clear me. Regards,
From India, Bhubaneswar
Dear All, Some companies are calculating Leave as part of CTC. With regards, Sameer K Ghosh
From India, Daman
which way of calculation is appropriate 1-basic-100%, hra-33% of basic, medical-10% of basic ,pf-12% of basic so on and so forth or calculation from gross salary as source of calculation.
From India, Calcutta
Dear Mr Hunk,
Attached herewith a salary beakup for your further reference...... you can add/delete accordingly according to your company policies and procedures
Thanks and regards
Ravibhushan Pandav
Human Resources Officer

From India, Pune

Attached Files (Download Requires Membership)
File Type: xls ctc calculation.xls (13.5 KB, 628 views)

Dear All,
Every company has different percentages and componants for constructing a CTC,The method of construction for some ctc for some companies is such that they do not add much into their basic as the employer contribution increases.I have posted a CTC construction according to my company policies.......... comments are highly appreciated
Thanks and Regards
Ravibhushan Pandav
Human Resources Officer

From India, Pune
Here i am sending you the calculation on monthly basis.
CTC(cost to company - which includes everything, both part of PF and all other allowance, Insurance etc..)
Basic: 45% of CTC
Transport Allowance: 800 FIX
HRA : 37.50% of CTC
PF: 12% of Basic
Professional TAX: 20-200.. based on Salary
Insurance: if any
CTC = 20,000
Basic = 9000 (45% of CTC)
Transport Allowance: 800 FIX
HRA = 7501 (37.50% of CTC)
Total = 17301
PF = 1080
Professional TAX = 200
Insurance = 330
Total = 1610
Net Amount = Total Earning - Total Deduction
= 17301-1610
= 15691 Rs in Hand.
now here the insurance amount can be differ based on plan selected, number of person cover etc...

From India, Ahmadabad
Gratuity is never considered as a part of CTC as it is pais only after the completion of 5 yrs, and an employee may leave before 5 yrs.
From India, Mumbai
Thanks Ravibhushan, Can you pl include the gratuity component in the excel sheet that you have provided? Or, else, tell us where it is to be inserted, Thanks Anand
From India, Pune
I want to get into Indian Payroll. I have been looking out for frens who can really teach me how payroll works.
My knowlegde so far:
Basic: 35% of Gross PF: 12% on Basic
HRA: 50% of Basics PT:400
Coveyance:800 fixed
Medical: 1250 fixed
Balancing amount:---
Hope this would do. I dont know what gratuity is? and other elements in Payroll. Kidly assist me

From India
Dear Shukla,

The compensation & benefits is a wider topic and the person, who needs to chart out the salary structure demands the knowledge of income tax, inorder to draw the tax friendly structure.

1. The % of HRA should be directly proportionate to the Basic. obviously, if the person gross salary is higher, then the HRA also increases - in the above thread, i have clearly stated as 40% of basic & DA.

As per IT Norms, salary for this purpose include Basic & dearness allowance.It Excludes all other allowance and perquisites. hence we take into consideration only Basic & DA for the purpose of allocating HRA. above 40% of HRA is taxable as per the IT norms. (Refer below other cities)

The IT Rules for HRA is as follows.

the place where the residential accommodation is divided in to

(a) Major cities - (Bombay, calcutta, delhi & Madras)

1 Allownace actually recieved

2 Rent paid in excess of 10% of salary

3 50% of salary

Note : Exemption admissible least of 1,2,3)

(b) other Places

1 Allownace actually recieved

2 Rent paid in excess of 10% of salary

3 40% of salary

Note : Exemption admissible least of 1,2,3)

2nd question :

The Cost to company - as the name only suggests, the total amount spent by the organisation on the respective employees.

if they are not given by them, then no need to can just include PF, PT, Gratuity.. i hope this three applies to all the companies- take only those factors which applicable to the company and draw the CTC.

3rd Question :

Inclusion of Gratuity in the CTC is a debatable question. Compensation & Benefits experts demonstrate the same in different purview. but here in our organisation we include on the basis of below fact.

The employee once completes one year of service, you need to start paying the gratuity amount of the respective employee, hence its the cost beard by the company - even though the employee might receive the same after completion of continuous five years of service.

Simple justification - when we are including in the CTC - employer contribution to the Provident fund, why not gratuity ?.

FYI, this depends from company to company. hence you have a option, whether to include or not to include.



From India, Bangalore

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