Creating a Customizable CTC Format: How Would You Improve This Approach?

I have tried to develop a CTC format. Maybe it will help you. I have tried to make some automated calculations. At the top of the sheet, you can choose to give PF/Bonus/incentive or not, and the salary will get calculated accordingly. Comments and suggestions are most welcome. You can write to me at [Email Removed For Privacy Reasons].

Regards,
Soyeb

Good job done. However, there is a slight mistake in the formula in the PF calculation field.

Regards,
Sajeed Shaikh
Head - Training & Development

But I think Soyeb is right for PF Calculation.

PF Accounts Rate of Contribution

Employee: 12% (Basic wages, dearness allowance)

Employer: 13.61%

Contribution:

- 3.67% = Provident Fund (A/c No.1)
- 8.33% = Pension Fund (A/c No.10)
- 0.5% = EDLIS - Employees Direct Linked Insurance Scheme (A/c No.21)

Administrative Charges:

- 1.10% of emoluments = Provident Fund (A/c No.2)
- 0.01% of emoluments = EDLIS (A/c No.22)

Regards,
Cp Singh

[Email Removed For Privacy Reasons]

Yes, his work is absolutely correct. Good work, Soyeb!

Regards,
Suchita
Zonal HR Head

Thank you very much for your comments and time. I hope that this type of format will be helpful for us in the future. Please keep in touch if anything is needed; I will do my best to contribute and learn through practical experience.

Regards,
Soyeb
[Email Removed For Privacy Reasons]

Very good job, just need to change the formula in PT. Regards, Hemant
HR Executive

Though the bifurcation of employer contribution is 12% + 1.61% = 13.61%, it is correct. However, upon checking, you will find that 12% is calculated solely on your basic wages, whereas 1.1% is calculated on basic wages, and 0.5% and 0.01% are calculated on your EDLI wages.

Hence, the 1.61% contribution from the employer's end is for PF Admin, EDLI, and EDLI surcharges, which is not considered a part of the employee's CTC.

Regards,
Sneha

Dear Mrugen, please find the example below:

Salary Breakdown Example

- Basic: 15,000
- Employee Contribution (12%): 1,800 (Basic wages)
- Employer Contribution (12%): 1,800
- Pension (EDLI wages 6,500 * 8.33%): 541
- Employer PF: Difference of EPF & Pension - 1,259. Total 1,800
- Admin Charges (1.1%): 165 (Basic wages)
- EDLI Charges (0.5%): 32.5 (EDLI Wages - 6,500)
- EDLI Surcharges (0.01%): 0.65 (EDLI Wages - 6,500)

Regards,
Sneha

Respected seniors,

If one's basic salary is less than Rs. 15,000, can one opt out of PF? If yes, then how?

Regards,

Cp Singh