Hi,
I am facing a problem where normally we can calculate a net salary if CTC is given to us. However, is there any formula or format wherein we can derive the CTC with the help of net salary? For example, if the net salary is 7500/- per month, what is the gross?
Please revert.
Regards, Gaurav Vedak HR Executive
From India
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I am facing a problem where normally we can calculate a net salary if CTC is given to us. However, is there any formula or format wherein we can derive the CTC with the help of net salary? For example, if the net salary is 7500/- per month, what is the gross?
Please revert.
Regards, Gaurav Vedak HR Executive
From India
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Hi Gaurav,
The CTC depends on various factors, and we can reach the CTC directly if we know about the gross salary. This all depends on the company whether to provide which kind of benefits to their employees or not. The benefits include LTA, PF, PL Accumulation, mobile, medical reimbursement, food, conveyance allowances, etc.
Once the company decides the structure regarding the benefits to be given to their employees, then only we can calculate the CTC based on that. First, check with the company's policy to determine what kind of benefits it wants to include in the CTC.
Regards,
Jitu
From India, Chennai
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The CTC depends on various factors, and we can reach the CTC directly if we know about the gross salary. This all depends on the company whether to provide which kind of benefits to their employees or not. The benefits include LTA, PF, PL Accumulation, mobile, medical reimbursement, food, conveyance allowances, etc.
Once the company decides the structure regarding the benefits to be given to their employees, then only we can calculate the CTC based on that. First, check with the company's policy to determine what kind of benefits it wants to include in the CTC.
Regards,
Jitu
From India, Chennai
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Hi Jitu,
Thanks for the response. As per our discussion, I will clarify the components so that you can better assist me.
The salary breakup is as follows:
- Basic
- PF
- HRA
- ESIC
- Conveyance
- PT
- Special allowance
I believe you will have the best ideas to guide me.
Regards,
Gaurav Vedak
HR Executive
From India
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Thanks for the response. As per our discussion, I will clarify the components so that you can better assist me.
The salary breakup is as follows:
- Basic
- PF
- HRA
- ESIC
- Conveyance
- PT
- Special allowance
I believe you will have the best ideas to guide me.
Regards,
Gaurav Vedak
HR Executive
From India
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Hi Gaurav,
Find below the complete details regarding the CTC and gross salary. The contents of the salary breakup are as follows; you can prepare it according to your own requirements. HRA would be 50% or 60% of the basic.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement/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 is provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Anything exceeding this will be covered under Mediclaim or depending on company policy.
- Ex-Gratia/Bonus = A fixed amount as Bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also referred to as CTC.
I hope this clarifies everything for you. If you have any queries, feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
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508Find below the complete details regarding the CTC and gross salary. The contents of the salary breakup are as follows; you can prepare it according to your own requirements. HRA would be 50% or 60% of the basic.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement/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 is provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Anything exceeding this will be covered under Mediclaim or depending on company policy.
- Ex-Gratia/Bonus = A fixed amount as Bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also referred to as CTC.
I hope this clarifies everything for you. If you have any queries, feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
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SALARY SHEET CALCULATION.xls
Employee Benefits.doc