Understanding CTC Breakup: Should Reimbursements Be Included or Not? Seeking Your Insights

Dear All,

Please find the attached Excel sheet for the CTC breakup of the employee. Just enter the Annual Expected CTC and Grade for the employee in the cell having a red background. I have prepared this sheet as per my company policies. Need your inputs for the same.

Also, please clear my doubt regarding the Reimbursements, whether they should be included in the CTC or not. Currently, I considered them over and above CTC.

Regarding reimbursements, it really depends on your company policy. We have both cases in our company; it depends on the grade of employees.

Hi,

Good spreadsheet. Reimbursements should be a part of CTC as the term denotes "Cost to Company." You are spending that amount on the employee, so it should be added to your CTC.

Dear Shweta,

In this statement, you have deducted PF. Since the basic is more than 6500, I think you don't have to deduct PF, right? Please correct me if I'm wrong.

Regards,
Athif

Dear Swetha,

Thank you for sharing this nice format. Regarding reimbursements being a part of CTC or not, it should be included. This allows the company to track how much it is spending on an employee and is beneficial for the book of accounts.

In our organization, we add reimbursements as a part of CTC for the tax benefits of employees.

Regards,
Jaya

Dear Athif,

If the basic is more than 6500, then you have to deduct PF only on Rs.6500/-; you don't need to deduct the same on the whole amount. In this case, you can deduct the employee's contribution on the whole amount of basic, whether it is more than 6500, but for the employer's contribution, the maximum limit is 6500.

Regards,
Shweta G

Dear all,

I am working in a private company in Chennai that is involved in seafood exports. I joined as a store manager at a consolidated pay of Rs. 15,000.00. However, our company is not deducting PF stating that at the time of joining, my Basic is more than Rs. 6,500.00. Is this rule true?

Regards,
Athif

If anyone tells me that HRA is compulsory, what is the minimum limit for HRA? Also, please specify the components of CTC with the minimum limit percentage in Uttar Pradesh and other states. If possible, kindly provide a good format. I would be sincerely grateful to all the members.

Basic=
HRA=
DA=
Other Allowance=
Conveyance=
ESI=
PF=
TDS=
Professional Tax=
Bonus=
Gross Salary=

Regards,
Deepak

If anyone tells me that HRA is compulsory, and what is the minimum limit for HRA? Also, please provide information on the components of CTC with the minimum limit percentage in Uttar Pradesh and other states. If possible, send me a good format for all categories including Cashiers, Drivers, Armed Guards, Office Boys, HR, Admin, and Logistic Supervisors.

I shall be very grateful to all the members.

Components:
- Basic
- HRA
- DA
- Other Allowance
- Conveyance
- ESI
- PF
- TDS
- Professional Tax
- Bonus
- Gross Salary

Regards,
Deepak