Understanding CTC: What Factors Should We Consider When Calculating Cost to Company?

Normally, which factors can we consider while fixing Cost to Company (CTC)? (Basic/HRA/conveyance allowance/PF/ESI/Gratuity/earned leave/canteen subsidy and what else). If any of the above is not considered in fixing CTC, please clarify the same.

1. Basic
2. House Rent Allowance
3. Medical Allowance
4. Conveyance Allowance
5. Special Allowance
6. Leave Travel Allowance
7. Canteen
8. Provident Fund
9. Gratuity

These are the components of the compensation package offered by the company. Each allowance serves a specific purpose in enriching the overall benefits provided to employees. Additionally, benefits such as the canteen facility, provident fund, and gratuity contribute to the well-being and financial security of the workforce. It is important for employees to understand and appreciate the entirety of their compensation package to make the most of the offerings provided by the organization.

Factors to be included in preparing CTC:

1. Basic
2. Special Allowance (if any)
3. Conveyance
4. Uniform Maintenance Allowances
5. Education Allowances
6. Medical
7. LTA
8. PF
9. Gratuity
10. Superannuation
11. Housing
12. Variable Pay
13. Mobile Phone Expenses

Please ensure that each factor is considered while calculating the Cost to Company (CTC) for an employee.