Understanding CTC: What Are the Key Components for Salary Break-Up?

Hi Friends, I am new to this site. I want to know what the components of CTC are, which we can include while calculating the salary break-up. Thanks, Jyoti Negi

Hi,

Please find out what CTC stands for.

CTC (Cost To Company): It includes Employer contribution to PF (12%).

For example, if the CTC is Rs. 8000, the Employer Contribution To PF would be 12% of CTC, which is 8000*12% = 360.

What is Gross Salary?

Gross Salary is calculated as CTC minus Employer Contribution to PF, i.e., 8000 - 360 = 7640.

What is Take-Home Salary?

To calculate Take-Home Salary, subtract the Employee contribution to PF and other deductions from the Gross Salary.

Gross Salary: 7640
Employee contribution to PF (12%): 360
Other Deductions:
- Mobile
- Food
- Cab

Regards,
Maniksing

Please find below the breakup of the components of the salary:

BASIC 3200
HRA 1600
CONVEYANCE 800
SPECIAL ALLOWANCE 1654
PF 384
PT 60
ESI 133
INSURANCE 20
TOTAL 597

GROSS SALARY 7254
PF 384
ESI 362
GROSS SALARY 7616
TOTAL 746

CTC 8000

NET TAKE-HOME SALARY 6657

The CTC stands for Cost to the Company, wherein all the heads of salary and other perks would be counted as part of the CTC. The Gross Pay and Net Pay would differ from the CTC. The explanation provided by Maniksing will offer clarity on the different concepts of CTC, Gross Pay, and Net Pay.

Regards,
DN

Hi,

CTC means Cost to Company, i.e., what are all the expenses incurred by the company for any of its employees for a particular period (monthly/yearly). Gross pay + employer's PF + employer's ESI + bonus = CTC, i.e., the salary payable and other statutory benefits payable by the company.

Hope you understand.

You can reach me at manikumarhr@gmail.com.

Thank you.

Dear Jyoti,

Simply put, all expenses incurred by a company for an employee are referred to as CTC. CTC stands for Gross Salary + Employer's Share to PF, ESI, Bonus, etc. + LTA + all fixed reimbursements (like medical, mobile, fuel, vehicle repair, etc.).

Gross salary encompasses all parts of the salary that are included in the salary chart or pay slip without any deductions, such as Basic, DA, HRA, CCA, Conv, Education and Medical Allowances, and all other allowances payable in the salary.

Take-home salary is calculated as Gross salary - (Employee's share of PF & ESI, and any tax (TDS and Prof tax) liabilities, welfare fund, etc.).

Manish Kumar

Hi,

Greetings of the day and Merry Christmas to all the members.

I want to know about ESI. What would be the employer's contribution and what would be the employee's contribution? I also want to know the time schedule and place where we have to submit the same. I would be thankful if you could provide me with this information.

Thanks a lot,
Anamika

Hi,

As per my understanding, CTC stands for Cost to Company, and the components include:
- Basic
- HRA
- Conveyance
- Mobile Reimbursement
- Medical Reimbursement
- All allowances
- LTA
- Employer contribution of PF
- Employer contribution towards ESI
- Total variable incentives
- Perks & benefits
- Insurance Premium (in the case of Group insurance)

If I have missed anything, please update me.

Regards,
Raul

Hi,

Greetings of the day and Merry Christmas to all the members.

I want to know about ES. What would be the employer's contribution and what would be the employee's contribution? I also want to know the schedule and place where we have to submit the same. I would be thankful if you can provide me with this information.

Thanks a lot,
Anamika

Hi, Merry Christmas,

You need to submit the same in the regional ESIC office where your office establishment exists. You will find the information on www.esic.nic.in.

Employer contribution: 4.75% of BASIC+HRA+SPECIAL ALLOWANCE
Employee Contribution: 1.75% of BASIC+HRA+SPECIAL ALLOWANCE

Regards,
Raul

CTC - COST TO COMPANY SALARY

CTC SALARY VARIES FROM COMPANY TO COMPANY. NORMALLY, IT INCLUDES GROSS SALARY = BASIC + HRA + CONVEYANCE + CANTEEN + CHILD EDUCATION + OTHER ALLOWANCES. AFTER THAT, IT INCLUDES COMPULSORY PF EMPLOYER'S CONTRIBUTION OF 12% OF BASIC + ESIC 4.75% OF GROSS (CEILING OF 10,000 IF APPLICABLE) + MEDICAL + GRATUITY + LTA, AND ANY OTHER ADDITIONAL BENEFITS. SOME COMPANIES INCLUDE THE KRA AMOUNT IN THE CTC CALCULATION.

REGARDS,

UDAY SABDE

CTC is 18000. Then we calculate regular PF, which is 2160. It depends on the company. Generally, 90% of the company deducts 780rs max from CTC equals gross.

Hi,

Please find the attached file. You will get clarity on ESI.

Regards,
Maniksing

Hi all,

This is Selva. I am new to this site and currently working as a Management Executive in an IT company.

Regards,
Selva