Dear Vijeta,
CTC as the name indicates is the total cost to the company. This includes
Basic Pay Fixed
HRA Generally it is 40% of Basic pay but may vary as per company policies Dear Vijeta,
Conveyance Allowance This may be fixed amount or milege allowance for actual movement done.
Education allowance This may be a fixed amount.
Special Allowance etc
All the reimbursements such as medical/traveling/entertainment/food subsidy
Bonus- This is minimum 8.33% of Basic Pay. If basic pay is more than Rs 3000/- pm then basic for calculation of Bonus is taken as Rs 3000/-
Gratuity - This is calculated as 50% of monthly pay for no of years of service put in by the employee subject to a continous service for a min period of five years.
Employer share of ESI - This is 4.75% of basic pay
Employer share of PF - This is 13.61% of basic pay (12% for PFcum Pension Fund and 1.61% as admin charges)
Any other expenditure on the employee ie. free lunch/tea /insurance etc.
2.Gross Salary : It includes all of the above less perks in kind (-) Employee share of PF 12% of Basic (-) Employee share of ESI i.e. 1.75 % of Basic (-) any other deduction by the employer
Thanx
Securityexpert
CTC as the name indicates is the total cost to the company. This includes
Basic Pay Fixed
HRA Generally it is 40% of Basic pay but may vary as per company policies Dear Vijeta,
Conveyance Allowance This may be fixed amount or milege allowance for actual movement done.
Education allowance This may be a fixed amount.
Special Allowance etc
All the reimbursements such as medical/traveling/entertainment/food subsidy
Bonus- This is minimum 8.33% of Basic Pay. If basic pay is more than Rs 3000/- pm then basic for calculation of Bonus is taken as Rs 3000/-
Gratuity - This is calculated as 50% of monthly pay for no of years of service put in by the employee subject to a continous service for a min period of five years.
Employer share of ESI - This is 4.75% of basic pay
Employer share of PF - This is 13.61% of basic pay (12% for PFcum Pension Fund and 1.61% as admin charges)
Any other expenditure on the employee ie. free lunch/tea /insurance etc.
2.Gross Salary : It includes all of the above less perks in kind (-) Employee share of PF 12% of Basic (-) Employee share of ESI i.e. 1.75 % of Basic (-) any other deduction by the employer
Thanx
Securityexpert