It is a logical problem for some organization when they arrive from CTC to monthly gross salary. Suppose for one employee in any organization CTC is INR 3,00,000/- per year. There are components like yearly( Bonus etc.) as well as monthly ( Employers' portion of PF & ESI cintribution etc. ). Now monthly gross is a statutory component which is required for different reasons consisting of Basic, DA, HRA, Other allowances etc.
Depending on remuneration structure of the organization, it is essential to arrive at monthly gross first from CTC level by deducting different elements of remuneration e.g. Gratuity, Bonus, EMPR portion of PF,ESI etc. etc. which may appear the INR 3,00,000/- CTC per year to INR 20k as monthly gross. Thereafter, after deducting employee portion of PF,ESI,PTAX, ITAX if any to pay the net salary.
Therefore, question of deducting all above( Bonus, gratuity etc.) from monthly gross will not arrise rather which has already been deducted from CTC will be paid without disturbing CTC.
Trust this will satisfy the query.
Thanks & Regards,
S K Bandyopadhyay( Howrah, WB )
USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
10th September 2018 From India, New Delhi
Yes, many companies follows the same practice but they do not deduct or show under deduction from the gross salary and is shown under your CTC bracket. Thus please confirm on the same. Secondly, it is ok to pay at 8.33% of basic till the time basic is not less than Rs. 7000/-.
11th September 2018
The bonus amount is calculated and mentioned ctc which can be paid towards the end of the year.
12th September 2018 From India, Vadodara
22nd December 2018 From India, Delhi