Thread Started by #JyotiArtsy

How to calculate gross and CTC based on 'in hand' salary? For example, if the in hand salary is Rs. 15000, how to calculate gross salary and CTC on the said amount?
Thanks in advance
4th February 2019 From India, Bangalore
The three Salary related words (Gross, Net and CTC) are related to each other. But there is difference, each of them could be important in different scenario. At bottom level generally Net Salary is important and there is no much different among all. But at Middle or higher level we negotiate on Gross and CTC concepts and there could be big difference. Let me explain with example:-
Case I:-
One employee is negotiated at Gross Wages of Rs. 15000, from which PF-ESI, PT etc will be deducted. Employer will also contribute for PF-ESI and will annually pay Bonus and Leave Encashment (for PL). Suppose Rs. 2000 deducted from the salary (towards PF-ESI, PT etc), than the Net salary will Rs. 13000.
Here the Gross (15000) and Net salary (13000) are cleared.
Case II:-
The employer also deposit towards PF-ESI, pay annual Bonus, provide Leaves etc. These amounts are not paid to employee on monthly basis, but leads employee’s Cost to the Company. When we include such benefits to the Gross Salary that will be CTC (Cost to Company). For example the monthly amt of :-
PF-ESI = 3200
Bonus = 1250
Leave = 800
Insurance = 750
------
Total = 5000
====
In such case the CTC will be Rs. 15000 (Gross) + 5000 (employer other benefits/cost) = 20000.
Hope the matter is cleared now. Senior can suggest more views.
5th February 2019 From India, Delhi
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™