Nkulsh
Career Management, Talent & Capability
Bhushan_tripathi
Hr Consultant
Praveen.tm47
Hr Executive
Jay_mohite
Sales Co-ordinator
+8 Others

Thread Started by #sandeepbanna

Respected Seniors,
i have gone through many posts regarding percentage of basic salary in ctc.Some said it is between 20 to 40% some said 45% and somewhere i seen 51.63 %.Is there are fixed percentage exist or just it depend upon company policies.I am bit confused.
Sandeep Singh Bhati
HR Executive
7737901700
14th November 2011 From India, Delhi
There should be no confusion about the basic component of a CTC. The Basic component is not governed by any regulation except that it should not be lower than the Minimum wages declared by the government.
I've have had organizations give 80% basic and some even 30%. It all depends on the company policy and the salary structure that they follow.
Cheers
16th November 2011 From India, Delhi
Respected Seniors,
Actually i am totally fresher in HR . i want to know How PF, ESI , gross salary are calculated .plz guide me with some example formats. plz give me information about Professional Tax.what is City compensatory all .
Regards,
sujata
16th November 2011 From India, Bhubaneswar
Dear All,
Can any one tell how to get feedback (Interview) from Top Management .
i have send mails ..but no reply . even he is not responding in Skype and Google talk.
can you suggest how to get feedback from Top Management .
Regards.,
Jags.
16th November 2011 From India, Visakhapatnam
@ Jags
Why are you seeking an interview with the Top management? what is the purpose... What email have you sent to them ? If you can tell us then maybe, just maybe we could be of some help to you. But here is my opinion on this generic question...
Should you try to contact your top management for feedback? Are you confusing feedback with complaints? In your attempt to be heard are you becoming an irritant? Think, analyze and then react....
Cheers!!!
16th November 2011 From India, Delhi
Hi sujatha,
PF is 12% from employee side and 12% from employer side.. From that 12% from the employee contribution 3.67% is goes to his EPF and 8.67% goes to his EPS account.
PF 12% is calculated in his/her basic salary and basic salary is calculated in his/her gross salary. Basic salary Percentage is depends upon the company policy.
ESI total 6.50%.. though the employee contributed 1.75% and the employer contribute 4.75% and the ESI is calculated in his/her Gross salary.
Thanks & Regards,
Valan
17th November 2011 From India, Madras
Hi sujatha,
PF is 12% from employee side and 12% from employer side.. From that 12% from the employee contribution 3.67% is goes to his EPF and 8.67% goes to his EPS account.
PF 12% is calculated in his/her basic salary and basic salary is calculated in his/her gross salary. Basic salary Percentage is depends upon the company policy.
ESI total 6.50%.. though the employee contributed 1.75% and the employer contribute 4.75% and the ESI is calculated in his/her Gross salary.
Thanks & Regards,
Valan
Edit/Delete Message
17th November 2011 From India, Madras
Dear sir, Is it any particular rules for basic fixation or it is depends on the company policy...?
17th November 2011 From India, Bangalore
Dear Sandeep,
The ideal is 40% Basic & 60% Allowances. Employer keep basic at minimum for various purpose viz., indirect benefits ( PF, ESIC ) Bonus, Gratuity & increment.
It is always advisable as more % of allowance if properly named can give Income Tax benefits.
Regards,
Rahul Bagale
17th November 2011 From Korea
Dear Sandeep,
Generally if you have a PF component which is 12% of Basic salary then it is ideal to have 40% of CTC as Basic whereas if the company is not enrolled for PF deduction for employees then you can consider keeping a higher basic but not more than 50% of the CTC keeping legal and compliance angle in mind.
Best Regards,
Bhushan
17th November 2011 From India, Mumbai
Dear Sandeep,
CTC design two way--------
1.CTC known as gross salary.
2.Gross salary known as CTC.
Now thing is that which way you are designing the CTC,In both case the basic componet will deffer.
In firsat case it must be consider 40% of CTC is basic component.
In last case it will be 45% of Gross salary, is basic component.
17th November 2011 From India, Mumbai
Dont know how people attain professional degrees without aquinting the required knowlege in the particular subject. Nothing harsh on anyone, however my personal feeling is that people should get a fairly handsome onboard training on job to make them feel the crux/systems/policies & procedures
8th February 2012 From India, Indore
Hello Sujata,

PF
First understand that there are two way contribution towards EPF. One is employee's contribution other forms employer's contribution. Again there are few employees who fall under mandatory contribution slab and other falls under optional. Depending upon your company policy you can make it mandate for all employees taking into consideration their net pay is not getting affected or their benefit towards enrolling in EPF. For eg. employee at the age of 56 who has never enrolled in EPF will never benefit if you try and enroll him at this age. So study your employee's need properly before doing it mandatory to for everyone.

Coming back to contribution EPF is bandatory for those whose BASIC salary component is <=15000 per month.
Employee contribution is 12 % of basic.
Eg: If employee draws a basic salary of 7000 then, Rs.840 will be deucted from his gross pay towards EPF.
Note: Also note the ceiling limit for EPF calculation remains Rs. 15000 as basic pay. To make you understand take an employee whose basic pay is 20000/- per month. He has voluntarily opted for EPF then, his EPF contribution will be calculated on Rs. 15000 basic pay as this forms the ceiling amount. Deducted amount would be Rs. 1800/-(which forms 12 % of 15000). Depending on company policy you can raise this ceiling to actual basic of an employee but it's not mandatory.

Now comes employer contribution:
Employer overall contribute 13.61% of basic pay towards EPF.
Now this 13.61% is biforcated as below.
8.33% towards EPS i.e. Employee Pension Scheme.
3.67% towards EPF i.e. Employee Provident Funds.
1.10% is the admin charges of PF
0.5% is towards EDLIS i.e. Employee Deposit Linked Insurance Scheme.
0.01% towards EDLI admin charges.

Thanks.
4th January 2016 From India, Mumbai
ESI is mandatory for employees with gross pay <=Rs 15000 per month.
Again a 2 way contribution.
Employee contributes 1.75% of gross earning per month. Whereas employer contributed 4.75% of employees gross earning.
On PT, For maharashtra it's as below:
Its nil for gross earning <=7500 per month
Rs. 2100 annual for gross earning <=10000, but >7500 per month (which makes Rs 175 pm)
Rs. 2500 annual for gross earning >10000 (Rs. 200 per month and 300 in feb)
Thanks
4th January 2016 From India, Mumbai
I am working as sales coordinator, for a Six months probation and leaves are not allotted to me so i am getting salary by cutting my leaves from my basic pay amount
I just want to know that cutting of salary from Basic pay is it right or wrong ?
9th June 2017 From India, Mumbai
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™