Understanding CTC vs. Gross Salary: Can You Help Clarify This HR Dilemma?

Dear Seniors, I am Nadeem Ahmad, working as an HR Executive. The problem in our company lies in the salary calculation system, as it is based on gross salary rather than CTC. For example, if a worker's salary structure in the company is Basic Rs. 8200/-, HRA Rs. 2300/-, and Conv. Rs. 2000/-, with a Gross Total of Rs. 12500/- and ESI & PF deductions of 219 + 780, resulting in a net pay of Rs. 11501/-, could you please advise on the actual CTC for this case?

Regards, Nadeem

You will get the CTC by adding the employer's contributions towards EPF, ESI, and other headings, if any, along with the employee's gross salary.

Cost to Company Explanation

Allowances (A)
Basic - Rs 8200
HRA - Rs 2300
Conveyance Allowance - Rs 2000
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Gross Salary - Rs 12500
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Provisions (B)
PF @ 12% - Rs 780
ESI @ 4.75% - Rs 594
Leave Pay - Rs Nil
Gratuity - Rs Nil
Bonus (8.33% or 20%) - Rs
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Total - Rs 1374
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Cost to Company (C) - Rs 13874
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Regards