Gross & Ctc Calculation Advice Required - XLS Download

abc

Hi Bincy,
Your salary will be calculated as follows:
BASIC 6525
HRA 600
CONV 500
SPL ALL 619

GROSS 8244
ESI (Employer's Share) 392
PF (Employer's Share) 780
GRATUITY 272
CTC 9688
NET (TAKE HOME) 7219.73
Working sheet is attached for your understanding.
Amit Goyal

Hi Binsy,
Plz find the attachment where your salary is restructured to make Take Home Rs 8000/- per month.
Amit Goyal

DEAR BINSY,

AS FAR AS HRA CONV AND SP. ALL ARE CONCERNED THESE ARE COMPANY SPECIFIC SO YOU CANT MAKE ARGUMENTS OVER THESE COMPONENT AND HENCE WHATEVR YOUR COMPANY IS GIVING IS ALL RIGHT. BUT PF, ESI AND GRATUITY ARE NOT COMPANY SPECIFIC AND THERE ARE FIXED RATE TO BE FOLLOWED. AS IN THE CALCULATION SENT BY YOU EMPLOYER IS ADDED 13.61% AS PF IN THE CTC WHILE IT SHOULD BE 12% coz only 12% CAN BE WITHDRAWAN BY THE EMPLOYEE. REST 1.61% IS THE ADMIN CHARGES AND EDLIS CONTRIBUTION BY THE EMPLOYER SO ONLY 12% OF BASIC AND DA SHOULD BE ADDED WHILE CALCULATING CTC. ESI CALCULATION IS PERFECT BUT GRATUITY CALCULATION IS WRONG AS GRATUITY IS CALCULATED @ 4.16% OF BASIC AND DA WHILE YOUR EMPLOYER IS CALCULATING @ 4.82%. BONUS CALCULATION IS PERFECT. SO NOW YOU HAVE TO ASK YOUR EMPLOYER TO CALCULATE GRATUITY @4.16% AND PF @ 12% WHILE WORKING OUT CTC.

THE LOGIC BEHIND 4.16% FOR GRATUITY IS AS FOLLOW:

GRATUITY IS PAYABLE ONLY AFTER 5 YEARS OR 60 MONTHS WHILE 15 DAYS SALARY IS PAYABLE FOR EVERY COMPLETED YEAR. SO WE CAN SAY THAT IN 5 YEARS 2 AND HALF MONTHS SALARY IS PAYABLE (ONLY BASIC AND DA) OR WE CAN SAY THAT IN 60 MONTHS 2.5 MONTHS SALARY IS PAYABLE. NOW CALCULATE HOW MUCH PERCENTAGE IS 2.5 OF 60 AS UNDER:

2.5 X 100/60

= 4.16

HENCE GRATUITY IS PAYABLE @ 4.16% OF BASIC AND DA

AMIT GOYAL

HI,
I CALCULATED GRATUITY PERCENTAGE AGAIN AND WHAT I CAME TO KNOW IS THAT GRATUITY SHOULD BE CALCULATED @ 4.83 % RATHER 4.16 BECAUSE FOR THE CALCULATION, MONTH IS ASSUMED TO BE COMPRISED OF 26 WORKING DAYS RATHER 30. NOW BECAUSE 15 DAYS BASIC AND DA IS GIVEN , IT MEANS 57.69 % OF MONTHLY BASIC AND DA IS GIVEN FOR EVERY COMPLETED YEAR. OR 0.58 MONTHS BASIC AND DA FOR EVERY YEAR OR 0.58*5 MONTHS BASIC AND DA FOR 5 YEARS WHICH COMES TO 2.9 MONTHS BASIC AND DA. NOW CALCULATE HOW MUCH PERCENTAGE IS 2.9 OF 60 (12*5).....
2.9 X 100 / 60 = 4.83 %
SORRY FOR THE WRONG CALCULATION EARLIER
AMIT GOYAL

Can anyone please reply me about whether ESI is shows in CTC or not if yes then whose share we mention in CTC employer or Employees.
JAC

Hi,
Am working for a new comingup hospital with multispecialities. Employee are questioning why PF and Gratuity is been deducted in CTC. I need to know how company is benefited in this calculation. And also I need to know what makes the difference between employee and employer.
Regards
RekhaKrishna