There is no system of payment like CTC but it is a practice by employers (especially new generation companies) to show the total pay obligation or cost to company by adding up all the contributions, charges etc that the company should bear in addition to salary. Whatever be the system, you are liable to pay only 1.75% of your gross salary, say if it is 23500, then 412, if it is 25000, Rs 438. Here gross pay is just the monthly fixed salary without considering incentives and such allowances which are paid in an interval of more than two months. It does not also include any contribution by the employer towards PF, gratuity or bonus. That means salary for the purpose of coverage and payment of ESI is very strictly to the fixed portion of the salary or the gross salary without reference to cost to company (CTC). Employer can show his cost to company by adding up 4.75% of gross which he contributes towards ESI but cannot make employee to bear it.
Though I have written all the above, I feel many companies who work out the salary on a total sum as CTC and bring down by bifurcating the same by different names depending upon its significance in present contributions (like PF, Bonus) or future payments like gratuity, will be working again on it based on the new amendment so that they will not suffer economically.
23rd September 2013 From India, Kannur