How to calculate the Cost to Company? If the company says Rs. 25000/- CTC, what does this mean? How much cash in hand to be calculated for the above-stated salary?
If your salary is Rs. 25,000, the calculation is as follows:
CTC - 25k
Basic - CTC 30% (basic value is 30%)
HRA - 40% of basic
Special allowance and conveyance depend on the organization.
Employee - PF 12% of basic
ESIC - 1.75% of gross earnings
Professional tax as per law.
Income tax.
GROSS EARNING - PF - ESIC - PT = NETPAY (TAKE HOME)
Deduct all those, and you will get the net pay; this is your take-home salary.
If you come to know any additional information, kindly let me know.
In my opinion, CTC depends on company policy, i.e., what they include in CTC. Employer contributions in PF, LTA, Lunch allowance, etc. We should have clarity on what is covered in CTC; mostly, the company covers PF in CTC.
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