New to HR? Need Help Understanding How to Break Down a ₹14,500 CTC Salary?

CTC Breakdown Request

I am new in HR. Please provide me with the breakdown calculation for CTC. For example, if my salary is ₹14,500 CTC, kindly explain how to bifurcate it. Your prompt response would be highly appreciated.

Thank you,

Vaishali

There is no standard breakup formula. It differs from company to company. However, I am enclosing a salary breakup for your knowledge.

Regards,
Ranjeet

Dear Vaishali,

Generally, salary breakdown depends on CTC. Here is a simple way to calculate the monthly salary:
- CTC/12, e.g., 240,000/12 = 20,000 (this would be the gross salary).
- On the gross salary, you have to calculate HRA, PF, Basic Salary, and TA.
- Basic Salary would be 40% of the gross salary (it's not a thumb rule but commonly followed).
- HRA would be 40% to 50% of the Basic Salary (again, not a thumb rule).
- PR 12% of Basic Salary.
- TA generally would be 800.

If you calculate all of this, you will get the monthly salary.

Hope this will help you to calculate the salary.

Regards,
Nagesh
9848345323

Here is the CTC breakup for 14500/- per month and the salary structure:

Component PA PM Remarks
Basic 93252 7771
HRA 37308 3109
Conv. 9600 800
Medical Allowance 15000 1250
LTA 0 0
Other Allowance 264 22
Total 15720 1310
NET 139704 11642
Gross 155424 12952
Variable 0 0

Deduction PA PM
Employee PF 11196 933
Employee ESI 2724 227
Employee PT 1800 150

PF @12% 11196 933
ESI @4.75% 7380 615
Gratuity @4.81% 0 0
GMC 0 0
GPA 0 0

CTC 174000 14500

Basic + DA: 9666.666667
HRA: 3866.666667
Conveyance: 800
Medical Reimbursement: 1250
Special Allowances: 6380
Gross: 21963
EPF (12% of Basic): 1160
ESI (Equivalent to 4.75% of Gross): 1043
CTC: 24166.66667

Deductions
EPF (12% of Basic): 1160
ESI (1.75% of Gross): 384
Total Deductions: 1544

Net Income: 20419

Basic + DA 9468.266667 HRA 3787.306667 Conveyance 800 Medical Reimbursement 1250 Special Allowances 6207 Gross 21513 EPF (12% of Basic) - 1136 ESI (Equivalent to 4.75% of Gross) 1022 CTC 23670.66667 Deductions EPF (12% of Basic) 1136 ESI (1.75% of Gross) 377 Total Deductions 1513 Net Income 20000

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Basic + DA: 9468.266667
HRA: 3787.306667
Conveyance: 800
Medical Reimbursement: 1250
Special Allowances: 6207
Gross: 21513
EPF (12% of Basic): 1136
ESI (Equivalent to 4.75% of Gross): 1022
CTC: 23670.66667

Deductions
EPF (12% of Basic): 1136
ESI (1.75% of Gross): 377
Total Deductions: 1513

Net Income: 20000