Understanding CTC Breakdown: How Are Basic, HRA, PF, and ESI Allocated?

Hi,

Could anyone provide me with a breakdown of the components of the CTC offered? I am interested in knowing the percentage allocation for components such as Basic, HRA, PF, ESI, etc.

Regards,
Krishna

Hi,

Whatever I know, I am sharing with you. Find the attached file.

Thank you.

Hi Krishna,

The components of the salary breakup may be as follows; you can prepare it according to your convenience. HRA would be 40 or 50% of the basic.

Basic

HRA 40 - 50% is exempted from taxes, depending on the class of the city.

CCA - ₹825/- is exempted from tax.

Other Allowances

Mobile Reimbursement.

Medical Reimbursement of ₹1250/month is exempted from tax.

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 who are not covered under ESI as the maximum ceiling for ESI is ₹10,000/Month.

Any amount exceeding this will be covered under Mediclaim or will depend on 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 called CTC.

Additionally, Food coupons, Holiday packages, and Furnishing items are included in their CTC.

I hope this clarifies your queries to some extent.

Regards,

Amit Seth.

Dear Mr. Deepak,

I hope you are doing well. I was looking for the details of salary break-ups and I have gone through your message. It is very useful for me.

Thanks.

Regards,

N. Krishna Kumar
HR - Recruitment

Dear Amit,

Fine! I hope you are doing well. What is included in Gross Salary? What is included in CTC? What is included in Net Pay? Could you please clarify?

Regards,
Krishna

Dear Krishna,

Please go through my post carefully, as I have already mentioned the same clearly.

Regards,
Amit Seth

Hi All,

I am having some confusion on salary breakups. I have already gone through all the above updates. But I want to know what is the exact percentage of Basic salary in our total CTC. It could be according to the rule fixed by the Indian government. (For example, if my salary is 25K per month, what would be my Basic salary...