Statutory Components In CTC

Hi,
I am preparing a ppt on "how to decide CTC components". Can anyone tell me the statutory components in CTC?
Also, is PF mandatory?
Its urgent.
Thanks in advance,
Gaurav
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Dear Gaurav,
Bonus, PF, ESI or Mediclaim, LV encashment and Gratuity is optional most will take some will not consider in CTC.
Regs
Reshma
India

CtoC in the normal course will have components as detailed below:
Basic Pay- House Rent Allowance( 50% of basic)-Other Allowance( 20% of basic)-Food and Conveyance allowances-( each Rs 800 per month -excempted from Income Tax) all payable every month. Annual Benefits would include Bonus( 20% of the basic) , LTA- equal to one month's Basic). Medical Reimbursements( Rs 15000 per annum-excepmted from Income Tax. and PF contriburted by the employer ( 12% of basic)

CTC means cost to company.
So, a Company would include the complete cost it would incurr for that person.
It would include the PF, Gratuity, Superannuation, Insurance Premium, etc along with the normal components of salary.
However, it is a policy decision of every organization what they want to include in CTC.

CTC refers to Cost to the Company.
CTC ("COST TO COMPANY") is termed as the "Sum of all the rewards and benefits provided to an employee provided from the Employer in addition to the Salary that has been paid."
Thus CTC is the total cost incurred on an employee by the employer / company.
So while calculating the CTC for an employee, the company necessarily needs to include the following:
1. PF
2. ESI (if the Gross Monthly is going to be <= Rs. 10,000)
3. Insurance Cover taken for an employee - Accident Cover , Medical or Health Insurance Cover
4. Gratuity (it is an active component that is included in the CTC, but an employee is eligible to get this benefit at the time of settlement; if they happen to serve in the company for atleast five years)
5. Superannuation
6. Monthly Salary Components
7. Annual Benefits like Medical Allowance, Annual Bonus, LTA etc.
Note: Maternity Benefit for Women and Leave Encashment will not be a part of CTC.

i would like to make a correction in the detail give my one my friend regarding the PF contribution of employer in the CTC working .in the CTC working we will show the PF contribution of the Employer 13.61.

dear ones /
hi
im looking for the format of off-roll and on-roll ,employers letter format so , kindly nyone can help me in this manner
thanks & regards
SAGAR SHARMA
DEE HR SOLUTIONS

Thanks Everyone for your valuable time in answering my query. However I did not get the clarification on statutory components in CTC.
I believe Basic salary has to be a part of CTC.
I would like to know if HRA, conveyance allowance and any other component should be the part of CTC.
Gaurav
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Hi Gaurav,
Please find the components in CTC.
Basic
HRA
Conveyance Allowance
Medical Allowance
Personal Pursuit Allowance
Spl. Allowance
PF
Pro. Tax
Meal Pass
ESI
I think i will help u to understand.

Dear Gaurav,
yes, PF is mandatory if your organisation is covered under EPF.
Statutory components in CTC may be ..
1. Provident Fund
2. ESIC
3. Leave Encashment
4. Gratuity
5. Bonus
6. Insurance Premium
Regards,
Amit Seth.