How Do I Break Down a 16 Lakh CTC for a New Employee? Urgent Help Needed!

I need assistance in structuring a Cost To Company (CTC) for an employee who has an annual package of 16 lakhs. I am relatively new to this organization, and the company has already hired this individual on a 16 lakh package per annum. Now, he is requesting a breakdown of his CTC and his monthly salary details. I would appreciate guidance on what components I can include in the CTC. It's urgent. Unfortunately, I am the only person here under my General Manager (H.R.). Your help would be greatly appreciated.

Please share what the role is in which he would join. The performance and sales incentives vary greatly in terms of size and composition. Do you offer superannuation, car incentives, and other benefits? We will share a package aligned with it.

Looking forward to hearing from you.

Thank you for your reply. I am free to add anything. Presently, first, I have to show the breakup to my boss. Then he will decide what they would like to offer to that particular employee. Car incentive is okay. Gratuity and superannuation are also okay, but to some extent. Please, I am looking for suggestions, and his salary should be near about 1 lakh to 1.30 lakh.

For a 16L CTC, one has to pay income tax, but can reduce the tax burden if you break down the pay as below:

1. **HRA** - 40% of basic in case of non-metros or 50% in case of metros.
2. **Fuel and Maintenance** - If he/she owns a car and uses it for company work, Rs. 20,000/- per month can be claimed for tax exemption.
3. **Food Coupons** - Rs. 2750/- per month, totally tax-free.
4. **Gift Voucher** - Rs. 5000/- per annum, totally tax-free.
5. **Medical Assistance** - Rs. 15000/- as tax-free.
6. **Club Allowance** - Up to 2.00 L per annum tax exemption available, subject to production of proof.

Salary Breakup for Rs. 16,000,000 CTC

Find the attached file of Salary Breakup for Rs. 16,000,000 CTC. I really hope it will be useful to you. Please revert with any suggestions.

Thank you.

Gratuity and CTC Components

Retrial components are countable in CTC. The percentage of gratuity is 4.81% or 15 days of basic pay per annum. Gratuity eligibility requires 5 years of service.

Thank you.

Hi everyone, I am new to this field. Today, my boss asked me to prepare a CTC breakup for the employees earning below 10k and above 10k. Since it's a new company, we currently have just 10-12 employees, and we are not enrolled in ESIC and EPF. My boss also asked me to prepare a CTC where the company has to pay low TDS. Please help me.

Regards,

Hello ARUN.BASCON,
How do you calculate gratuity monthly in your CTC sheet? Also, could you please clarify leave encashment? I would be grateful to you.

Hi everyone,

I am new to this field. Today, my boss asked me to prepare a CTC breakup for 22 Lakhs for the employee. My boss also asked me to structure the CTC in a way where the company has to pay low TDS. Please help me.

If anybody has a CTC Breakup/Salary slip for 22 Lakhs, please provide it to me ASAP.

Thanks in advance.