Hi Jaisal,
In order to start the CTC complete process, you should first register with PF and ESI departments
CTC is a total cost to company which includes all the statutory provided to an employee
first you need to decide if you are providing any additional benifits apart from take home salary to employee, if yes
you need to calculate the gross salary of an employee which is employee contributions + PT+take home
Employee contributions : PF and ESI
Professional tax(PT) is mandatory on total salary of 15000 and above which 200 Rs
ESI is mandatory if you cross more than 10 employees and if the gross salary is less than 21000 rs
PF is mandatory if basic salary is less than 15000 rs, if you cross 20 employees
CTC Structure:
Find out the gross salary, Exclude employer contributions, Like PF, ESI and Insurance from CTC which gives you Gross Salary
Gross Salary includes Net Salary + Employee contributions like PF ESI PT etc..
Net Salary is the take home salary
Salary Structure
Basic Salary : 35 - 60 Percent of gross Salary
DA can be merged with basic or you don't have to show DA in your package
ESI : 1.75% of gross for Employee contribution and 4.75% for employer contribution
PF : 12% of basic salary for employee and 13% for Employer
HRA is 40 to 80% of Basic Sal
TA can be upto 1900 and medical allowance can be upto 1250 as per exemption
Rest you can show it as other allowance or special allowance
Hope this helps:)
Regards
Sunil Kumar
Proprietor
Dbrightspeir Consutlancy
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