I have been working on some salary revisions in a company.
Their existing CTC structure did not account for PF, I have created the structure such that as per the company policy the annual CTC has the following componentsŞ
Basic, HRA and Conveyance + Fixed benefits equals 75% of total annual ctc this also includes the PF contributions of both employee and employer
Variable component 25%
I am now facing a challenge in revising salaries. When I hike the TCTC by a certain percentage with benefits remaining the same, the change in PF contribution due to dependency on Basic component is changing the annual CTC figure.Since I have approval on percentage hike in annual CTC, this change in CTC due to dependency on PF is changing the whole equation.
Please help me understand how this can be calculated or if I should just define salary bands and associate PF contributions?
Any inputs will be helpful, thanks!

From India, New Delhi
Payroll Processing & Facility Mgt
+2 Others

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.


The whole CTC Structure would change if you add or subtract any component. Which should not be a problem I think.
From India, Mumbai

I have attached the Excel sheet to clarify my dilemma.
Now the problem is seeking a hike on the "current annual CTC" let's say 10%
This leads to the "new annual CTC" however once I start calculating the CTC components (benefits : since PF contribution has changed" the "new annual CTC" no longer reflects a 10% hike.
Request you to look at the sheet and let me know if you can think of a solution to this problem.
How is salary calculated keeping PF contributions in mind and deciding on annual CTC figures?

From India, New Delhi

Oops forgot the attachment above.
In the attached sheet, I am seeking a hike approval on the total annual current CTC..this should give me the new annual CTC.
Based on this new annual CTC I start computing other components (25% variable, benefits are fixed except PF and the gross amount)
However since the PF depends on Basic , and the basic is different from current basic..the annual CTC amount changes, it is no longer the amount I got after putting 10% hike on the existing annual CTC.
Feel free to change the percentage hike!
PFA here

From India, New Delhi

Attached Files (Download Requires Membership)
File Type: xls Salary Computation Error Sheet.xls (28.0 KB, 1921 views)


they is error in whiled attaching a copy.
pass from 7/ 8 year i have been working on this salary's part. As per my knowledge
I had created the structure, with company policy on monthly CTC has the follows.
pls check the following details given below & copy same to an excel sheet.
SNo. Name Service in months CTC incre Total Basic Hra 50% Cony. 11% Lta(basic/12) Med(basic/12) Bonus Other Allow. Gross sal PF contri, CTC Incre % Emply & employer both pf Contrub. P.Tax as per statuory Net Salary
1 XXXXXX 67 75000 10000 85000 34000 17000 3740 2833 2833 5667 14847 80920 4080 85000 13.3 8160 200 72560
2 YYYYYY 48 55000 7000 62000 24800 12400 2728 2067 2067 4133 10829 59024 2976 62000 12.7 5952 200 52872
it maybe useful & easy with simply calc.
Chandra Sekhar.

From India, Hyderabad

dear Mr. Chandra Sekhar, Not able to understand, could you please illustrate with an example calculation or attach the same in excel. shany
From India, Bangalore

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server