New to HR: What Should and Shouldn't Be Included in Annual CTC?

Hello friends,

I am new to the HR department. I want to know what can be included in Annual CTC and what cannot be included in it. Please help me out!

Sudhir Kumar

Hi Dude,

The below is a simple calculation of CTC:

CTC = Gross (Basic + HRA + SPL ALLOW + CONV + ETC) + Addition Employer Contributions (PF @ 13.61%, ESI @ 4.75% of less than 10000 gross, insurance if applicable). Net Take Home = Gross - less total deduction i.e., PF, ESI, PT.

Also, find the simple format of salary calculation for your reference.

Regards, Ravi

Thank you very much, dear. You provided me with very good information about the salary structure per month. One thing I would like to know more about is the allowances/benefits that can or can't be included in the annual C.T.C.

Hi,

Thank you to everyone for this information. It is very helpful for me. I have one question: Is the PF deduction fixed at 13%, or does it vary from company to company?

Regards,
Mustafa

Hi friends,

I have a gross monthly salary with the following details: Basic = 7510, DA = 2854, conveyance allowance = 650, other allowances = 2183, incentive = 2850 (not fixed). I contribute to PF (basic + DA + incentive) * 12%, i.e., 1500 (approx). Additionally, I receive yearly ex-gratia of 20000, LTA = 7200, and around 52 leave days encashable. The company also provides me with a 2-bedroom/kitchen/latrine-bathroom flat and full hospital facilities (for self, spouse, parents, child). Furthermore, I have accidental insurance, and the company gives me a gift (yearly) averaging Rs. 5000 along with 3-piece clothing set/safety shoe/4 sets of soap, etc. I cannot calculate my CTC; please help me understand how to calculate this.

Please inform me via email at indrashis.dey@gmail.com.

[QUOTE=Curfew Paintball;943642]
Hello,
I have started a paintball company, and I would like to know how to calculate the expenses that can be considered in calculating CTC.

Dear,
CTC, i.e., cost to company, is actually a very relative term. My experience suggests that different companies have interpreted and explained it in different ways. In general, it refers to the costs borne by the company for the benefit of the employees. Apart from Gross Salary, it includes:

1) PF employer contribution
2) ESIC Employer Contribution
3) Bonus
4) Gratuity
5) Superannuation
6) Mediclaim Premium
7) Any other insurance premium paid for employees
8) Fringe Benefits like housing, car, mobile, etc. (their rent or charges)
9) Any conveyance for personal use if reimbursed

As it is a very broad term and does not have any legal or specific definition, it can be interpreted in many ways. I hope this provides you with some insight.

Regards,
Sandeep Kulkarni

Hi!

Can you help me provide an Excel sheet detailing the salary structure, including CTC, take-home pay, and gross calculations?

Hi,

I am new to the HR department and I want to know how to calculate the gross salary. If my gross salary is Rs. 25,000/-, then what is the salary breakup? I also want to know what is the minimum amount that has to be paid for Basic Salary and the maximum amount. Are there any rules for calculating this?

Srinivasan