Designing CTC: Can Anyone Share a Sample Format for Better Understanding?

Dear Sir/Madam,

What is the correct format for designing CTC? Could you please provide me with a sample of that?

Thank you,
Purvi Badjatya

Hi Purvi,

The contents of the salary breakup may be as follows; you can prepare it according to your own convenience. HRA should be 40 to 60% of the basic salary.

- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement per Month
- Gross Per Month = Sum of all the above.
- Gross Per Annum = 12 * Gross/Month
- PF Contribution = 12% of Basic/Annum
- ESI Contribution = 4.75% of Gross/Annum
- Medical = The mediclaim facility provided to employees not covered under ESI, as the maximum ceiling for ESI is 10,000/month. Anything exceeding this will be covered under Mediclaim, subject to company policy.
- Ex-Gratia/Bonus = A fixed amount as a Bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also known as CTC.

I hope this information helps you in preparing the required details.

Regards,
Amit Seth.

Dear,

First of all, you should know the minimum wages prevailing in your state for preparing the CTC.

The Basic salary as per your company policy depends on different grades such as executives, assistants, managers.

CTC can be calculated as: monthly or annually

Basic = 3500 (monthly) or 3500*12 (Months)

HRA 40% to 50% of Basic

Conveyance allowance = 15% or 20% of Basic or transport allowance = can be a fixed amount.

Special Allowance or children's educational allowance = any amount so that after deductions net salary comes to 5% to 15% of conveyance allowance

Total of all these = Gross Salary

Basic * 13.61% = PF employer's contribution

If gross salary is less than or equal to Rs. 10,000 = Gross salary * 4.75% ESI employer's contribution

LTA OR Medical Reimbursement = Basic * 15% or 20% payable annually

Bonus depends on your company policy = It can be basic * 15% or 20% payable annually

Gratuity payable after five years of continuous service calculated yearly

Any reimbursements such as mobile, washing, mediclaim can be added.

Gross + employer's contribution (PF or ESI) + LTA or Medical + Bonus + gratuity + any reimbursements = CTC

Thanks

Saurabh