Hello All, I have confusion about CTC. CTC include Employee’s & Employer’s Contribution of PF and ESIC also ? Regards, Jamith
From India, Gandhinagar
From India, Gandhinagar
DATE: 25th April, 2013
Dear Jamith
CTC- Cost to Company (to engage an employee) can include every paisa company spends on an employee directly or indirectly. Now it depends on company which heads/cost to be included while arriving at CTC for an employee. The philosophy of cost components varies from company to company.
So PF, ESIC, Gratuity, Bonus, Uniform, Free transportation etc. could also be part of CTC.
may pl. see some of my old posts on the subject also.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
300Dear Jamith
CTC- Cost to Company (to engage an employee) can include every paisa company spends on an employee directly or indirectly. Now it depends on company which heads/cost to be included while arriving at CTC for an employee. The philosophy of cost components varies from company to company.
So PF, ESIC, Gratuity, Bonus, Uniform, Free transportation etc. could also be part of CTC.
may pl. see some of my old posts on the subject also.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
[QUOTE=govindsinghnegi;2053405]Dear Jamith,
It do includes. For more reference, check out below post.
----------------------------------------------------------------------------
Thanks a lot for reply Govind!
I have seen your post really very good post and useful, got few new information from your post, but still i am confuse with CTC part, like
If person salary is Rs 14000/- per month now, this figure i want to make it as CTC that means it should include PF and ESIC contribution of employee and employer both.
So now how to calculate salary and how to show in salary slip??
I will be really thankful to you if you guide me in this matter. Thanks!
( Your blog, forum and FB page are really good - Thanks for sharing)
From India, Gandhinagar
It do includes. For more reference, check out below post.
----------------------------------------------------------------------------
Thanks a lot for reply Govind!
I have seen your post really very good post and useful, got few new information from your post, but still i am confuse with CTC part, like
If person salary is Rs 14000/- per month now, this figure i want to make it as CTC that means it should include PF and ESIC contribution of employee and employer both.
So now how to calculate salary and how to show in salary slip??
I will be really thankful to you if you guide me in this matter. Thanks!
( Your blog, forum and FB page are really good - Thanks for sharing)
From India, Gandhinagar
[QUOTE=Shailesh Parikh_HR Pro;2053465]DATE: 25th April, 2013
-----------------------------------------------------
Hi Sailesh,
Thanks taking out your time for replying my query.
I agree whatever you told, but i have query which i have asked in my above msg, please refer to it and reply me how to show this on paper?
Regards,
Jamith
From India, Gandhinagar
-----------------------------------------------------
Hi Sailesh,
Thanks taking out your time for replying my query.
I agree whatever you told, but i have query which i have asked in my above msg, please refer to it and reply me how to show this on paper?
Regards,
Jamith
From India, Gandhinagar
Jamith,
Hope you are not clear on Shailesh's reply. He had explained you the question of yours. Again if you are asking how to show that in the salary slip, then CTC can be explained in the Offer/Appointment letter and not in pay slip. You can show Gross Salary + Employer PF + ESI + Any special components like Medical Insurance, etc in the Offer/Appointment letter. Wherein the deduction part like Employee PF, PT will be shown as deductions.
You cannot have both be shown in one copy. Again this is purely based on the organization call. Let me know which sector do you work with, that would helps us to throw more clarity for the query.
From India, Bangalore
Hope you are not clear on Shailesh's reply. He had explained you the question of yours. Again if you are asking how to show that in the salary slip, then CTC can be explained in the Offer/Appointment letter and not in pay slip. You can show Gross Salary + Employer PF + ESI + Any special components like Medical Insurance, etc in the Offer/Appointment letter. Wherein the deduction part like Employee PF, PT will be shown as deductions.
You cannot have both be shown in one copy. Again this is purely based on the organization call. Let me know which sector do you work with, that would helps us to throw more clarity for the query.
From India, Bangalore
Hi Mahr,
Thanks a lot! Lot of things get clarify from you reply, in appointment letter it should me CTC that inclusde everything but i am not able to figure out CTC, how to make 14k CTC which includes, basic, hra, medical allowance, conveyance allowance, and other other allowance, including employee and employer contribution of PF and ESIC? Is there any tool or excel formula to calculate this?
Waiting for reply!
Jamith!
From India, Gandhinagar
Thanks a lot! Lot of things get clarify from you reply, in appointment letter it should me CTC that inclusde everything but i am not able to figure out CTC, how to make 14k CTC which includes, basic, hra, medical allowance, conveyance allowance, and other other allowance, including employee and employer contribution of PF and ESIC? Is there any tool or excel formula to calculate this?
Waiting for reply!
Jamith!
From India, Gandhinagar
Can anybody help me out and show me practical figure that how to bifurcate 14k ctc?
From India, Gandhinagar
From India, Gandhinagar
Dear Mr.Jamith,
CTC means Cost to the Company the contributions made by employer to your PF account as well as Gratuity, Mediclaim,LTA, Bonus,ESIC, and any other expense on employee head
Note: Travel Allowance that is submitted by employee(s) against travel bill is not mentioned in your appointment letter because travel allowance is not certain but all the statutory expanses along with salary components spent by employer on employee head is known as CTC (Cost to the company)
Note: And your last query regarding bifurcation of 14k CTC it differ organization to organization, so it's not possible to bifurcate
With Regards
From India, Ranchi
CTC means Cost to the Company the contributions made by employer to your PF account as well as Gratuity, Mediclaim,LTA, Bonus,ESIC, and any other expense on employee head
Note: Travel Allowance that is submitted by employee(s) against travel bill is not mentioned in your appointment letter because travel allowance is not certain but all the statutory expanses along with salary components spent by employer on employee head is known as CTC (Cost to the company)
Note: And your last query regarding bifurcation of 14k CTC it differ organization to organization, so it's not possible to bifurcate
With Regards
From India, Ranchi
Dear Jamith
This break up is for your kind information as you requested
Annexure-1
Name of Employee : JAMITH
Designation :
Elements Per Month (Rs.) Per Annum (Rs.)
Basic Salary 5996.00 71,952.00
Conveyance Allow. 1199.00 14,388.00
Medical Allow. 600.00 7,200.00
HRA 2398.00 28,776.00
Special Allowance 1799.00 21,588.00
Monthly Gross Salary (A) 11,992.00 143,904.00
LTA 500.00 6,000.00
Bonus 500.00 6,000.00
Annual Benefit (B) 1,000.00 12,000.00
PF (Company's Contribution) 720.00 8,640.00
Gratuity 288.00 3,456.00
Retiral Benefit (C) 1,008.00 12,096.00
Cost to the Company (A+B+C) 14,000.00 168,000.00
Take Home Salary (A - PF) 11,272.00 135,264.00
* Income Tax & Professional Tax - Will be deducted as applicable.
* PF- Company's contribution - 12% of basic (limit of Rs.780/pm)
* Gratuity - Payable as per Payment of Gratuity Act.
From India, Ranchi
This break up is for your kind information as you requested
Annexure-1
Name of Employee : JAMITH
Designation :
Elements Per Month (Rs.) Per Annum (Rs.)
Basic Salary 5996.00 71,952.00
Conveyance Allow. 1199.00 14,388.00
Medical Allow. 600.00 7,200.00
HRA 2398.00 28,776.00
Special Allowance 1799.00 21,588.00
Monthly Gross Salary (A) 11,992.00 143,904.00
LTA 500.00 6,000.00
Bonus 500.00 6,000.00
Annual Benefit (B) 1,000.00 12,000.00
PF (Company's Contribution) 720.00 8,640.00
Gratuity 288.00 3,456.00
Retiral Benefit (C) 1,008.00 12,096.00
Cost to the Company (A+B+C) 14,000.00 168,000.00
Take Home Salary (A - PF) 11,272.00 135,264.00
* Income Tax & Professional Tax - Will be deducted as applicable.
* PF- Company's contribution - 12% of basic (limit of Rs.780/pm)
* Gratuity - Payable as per Payment of Gratuity Act.
From India, Ranchi
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Employer-PF-res trict to wages of Rs 6500.pdf
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