Understanding CTC: How Do You Calculate It with These Salary Components?

Hi everyone, my query is, if an employee's basic salary is $8400, HRA is $5000, conveyance + special is -$2600 + $800, and mobile allowance is $200, please let me know what his CTC is.

Hi, is there a PF and ESI contribution deducted? If so, could you please inform me of the exact deduction amount for both PF and ESI? Thank you.

Basic - 8400
HRA - 5000
Conveyance - 800
Mobile Allowance - 200
Special Allowance - 2600
Total Gross = 17000
Employee Share - PF - 780
PT - 200
Employer Share - PF - 780
Net Salary - 16020
Total CTC = 17780

I would like to know how you calculated the HRA, and what percentage is given? Please let me know.

You can also consider the Gratuity amount (arrive monthly amount) to arrive at the CTC figure. Many companies adopt this approach when arriving at the CTC figure. As ESI does not apply, there should be some medi+claim policy. Please include the premium amount paid by the company in the CTC figure.

Thanks,
R K Nair

CTC Calculation Components

CTC is calculated as follows:

- Gross Salary
- Add: Employer's Share of PF
- Add: Employer's Share of ESI (if applicable, in this particular case, NO)
- Add: Mediclaim/Insurance Premium (if paid by employer)
- Add: Provision for Gratuity
- Add: Provision for Bonus/Ex-gratia Payment
- Add: Leave Wages
- Add: Canteen Facilities (if subsidized by employer)
- Add: Company Transport (If provided/subsidized by employer)
- Add: Any other expenses (direct or indirect) borne by the employer