Struggling with CTC Breakdown: How Do I Calculate the Fixed Gross Salary?

Hi, I have a query related to the Annual CTC structure. How do I arrive at the Fixed Gross amount?

CTC Structure

The structure is as follows:
- CTC is 6,00,000
- Basic is 50% of Fixed Gross
- HRA is 50% of Basic
- Conveyance is fixed at 19,200
- Special allowance is the balancing figure (Fixed Gross - Basic - HRA - Conveyance)

Reimbursement

- Medical - 15,000
- LTA - 1 month Basic Salary

Employer Contribution

- Employer PF - 21,600
- Gratuity - Basic * 4.81%

My question is, I need to know the Fixed Gross amount before I can finalize the salary structure. What is the Fixed Gross amount and how can I calculate it? Can someone please assist me with this?

Thanks in advance.

Details Per Annum

Basic salary: 300,000.00
HR Allowance: 150,000.00
Conveyance: 19,200.00
Total: 469,200.00

EPF at 13.16% restricted to 21,000/- per month, Management contribution: 252,000.00

Take-home: 217,200.00

Reimbursements
Medical: 15,000.00
LTA (One month basic): 25,000.00
Gratuity at 4.81%: 14,430.00

Cost to the Management per annum: 775,630.00

Based on your example, the CTC would be Rs. 775,630.00 per annum. Out of which, the fixed cost is Rs. 469,200.00 per annum. The variable cost is based on the increase/decrease in Basic, Rs. 54,430.00 per annum. I hope I have clarified your query!

CTC means the financial cost to the company per employee. It covers all components. Many employers do consider in CTC the contribution to PF by the employer, Gratuity, Bonus, cost of the housing provided by the company if HRA is not paid, leave encashment, etc. Hence, based on these facts, you can work out CTC for any employee.

R R Kapoor
Vadodara

Thank you for the explanation, Mr. Babu Alexander. But, what is the special allowance amount? First, we need to find the Gratuity, then PF, then ESI; after that, we can determine the special allowance. Please help with the reverse calculation.

Regards,
Vinod Reddy