Understanding CTC: Can Someone Explain How to Calculate It in Simple Terms?

Dear Sir,

I am Vijaya. I am working as an Assistant Officer in an MNC. I want to know how to calculate CTC. Could you please provide a brief explanation on how to calculate CTC?

Thanks,
Vijaya

Dear Vijaya,

Kindly find the attached file of calculating CTC; this will give you an idea. Remember, each company has its own discretion in dividing the components - Basic, HRA, Conveyance, and other allowances. As you are aware, the Basic, DA, HRA, and Conveyance Allowances are calculated as a certain percentage of the Gross salary. Some companies follow the breakdown of 60% as Basic, 20% as HRA, 10% as Conveyance, and 10% as Education allowances based on the Gross salary. Other companies follow the rule of 30%, 20%, 10%, 10%.

Please find out from your management what percentages should be used for calculating Basic, DA, HRA, and Conveyance allowances.

Regards,
Md. Fazel Hussain
Mob: 9790720286