Please provide CTC (Cost to Company) Calculation structure and explanation

sadhna-singh1
Please provide CTC Calculation structure
Jain Jitendra
CTC is sum up of all components of of your salary, allowances, bonus, ex-gratia, if any, provident fund contribution both side (24%), ESI contribution both side(4% effective from jul'19) if applicable, installment paid by employer for health / personal accident policy, performance incentive or production incentive if any where minimum payment is mandatory.
Jitendra Jain
Sr.Manager (HR)
Jain Jitendra
CTC is sum up of all components of of your salary, allowances, bonus, gratuity, ex-gratia, if any, provident fund contribution both side (24%), ESI contribution both side(4% effective from jul'19) if applicable, installment paid by employer for health / personal accident policy, performance incentive or production incentive if any where minimum payment is mandatory.
Jitendra Jain
Sr.Manager (HR)
Kiran Vijayraj Mehta
pls help me with learning of SALARY BREAKUP . I HAVE IDEA BT NOT CLEALRY
debora-sumopayroll
CTC or Cost to Company is the total amount that a company spends (directly or indirectly) on an employee. It refers to the total salary package of the employee. CTC is inclusive of monthly components such as basic pay, various allowances, reimbursements, etc. and annual components such as gratuity, annual variable pay, annual bonus, etc.
CTC is never equal to the amount of take-home salary of the employee. There are many components in the CTC that one does not receive as part of take-home salary.
CTC = Gross Salary + PF + Gratuity
Gratuity
Gratuity is the part of the salary that is received by an employee from the employer for the services offered by the employee upon him or her leaving the job.
Though an employee can receive the gratuity amount only after 5 years, it will be deducted by the employer every year and hence it will get deducted from your CTC.
Gross salary
Gross salary is the amount calculated by adding up one's basic salary and allowances, before deduction of taxes and other deductions. It includes bonuses, over-time pay, holiday pay, and other differentials.
Gross Salary = Basic Salary + HRA + Other Allowances
Babu Alexander
CTC (Cost to the company) includes all monthly payment and remuneration incurred by the company to wards engagement of particular employee. With regard to PF and ESI only the Management contribution to be counted for CTC as Employees contribution is not the cost of employer and is a Employee' s contribution. Even any payment to Superannuation fund / LIC to be included for CTC.
However my opinion on Gratuity is, different. This does not form part of CTC ,since it is payable only after having completed five years of continuous of service by the particular employee. It is a terminal benefit / conditional payable by the Employer for the service rendered. More or like a retrenchment compensation payable/ if payable if terminated on a later date.
Pravinddc
Please provide CTC Calculation structure
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