Understanding CTC: Are Special and Medical Allowances Included or Part of Flexi Plan?

Hi all!

Please help me clarify if the special allowance and medical allowance are part of your CTC or if they are included in the flexi plan? Also, please guide me on the salary breakups.

Thanks

Salary break is formulated and implemented entirely based on the company's policy. Many companies have different salary breakup structures, where the medical allowance is either a part of CTC or a flexi pay. If your organization is in the manufacturing sector, then usually the medical allowance is added to the CTC, either as a monthly component or a yearly component. In the monthly component, you have to submit the bills against the claim, and the same will be reimbursed to you along with your monthly salary, either through bank payment or in cash, depending on the company's policy.

As far as salary breakups are concerned, go to the search toolbar on top of the page (in CiteHR) and post your query. You will find many posts related to your query along with samples.

CTC stands for Cost to Company. It technically encompasses all the components that constitute the package for an employee, including contributions towards retirement benefits. Any type of allowance is definitely included in CTC.

CTC stands for Cost to the company. Whatever component of the salary you may call a Special Allowance, Performance Allowance, or any other allowance will all come under the CTC.

Thank you.