New to HR: How Do I Ensure CTC Compliance with West Bengal's Minimum Wages?

I have recently joined a manufacturing company. The HR manager has asked me to prepare an up-to-date CTC by complying with all the labor laws in Kolkata. Honestly, I have no idea how to create a CTC while ensuring compliance with the Minimum Wages for West Bengal. Therefore, I kindly request all the seniors to help me sort out my problem.

Dear Laishram,

CTC includes employee's salary and employer's contributions towards PF, ESIC, etc. Find out what the minimum wage is for West Bengal, and based on that, you can prepare CTC.

For example, if the minimum wage is 10,000:
- Basic + DA: 10,000
- Employer PF: 1,200 (12%)
- Employer ESIC: 450 (4.5%)
- Bonus: 625 (7,500 * 8.33%)
Total: 12,275
CTC will be 12,275.

Regards,
Praveen B
praveenbhosale1@gmail.com

Dear Mr. Singh,

If your manufacturing unit is located in Kolkata, you must follow the minimum wages as per Zone-A of West Bengal for your industry and at different skill levels. Moreover, besides Basic & DA, there is a state enactment, the "WB House Rent Allowance Act," where 5% of Basic & DA should be allocated as HRA.

CTC has no legal status. It depends on organizational decisions and remuneration structure. In addition to what Praveen B has mentioned, there may be other items that could be considered as part of CTC, such as Gratuity, Subsidized Canteen, Transport provided by the organization, etc. For any further clarification, feel free to contact me if needed.

Thanks & Regards,

S K Bandyopadhyay (West Bengal) USD HR Solutions

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