We have the following components in our salary:
Basic + DA
HRA
Education Allowance
Medical Allowance
Conveyance Allowance
Deductions:
PF
PT
ESIC
I just want to know if we could have a reverse formula for calculating the gross figure if I have a CTC figure. Kindly let me know.
From India
Acknowledge(0)
Amend(0)
1Basic + DA
HRA
Education Allowance
Medical Allowance
Conveyance Allowance
Deductions:
PF
PT
ESIC
I just want to know if we could have a reverse formula for calculating the gross figure if I have a CTC figure. Kindly let me know.
From India
Acknowledge(0)Amend(0)
Dear Bhavna, This forum has given numerous examples on CTC and related queries,please go through. And what exactly you mean by reverse formula here? All these components are part of CTC only.
From India, Hyderabad
Acknowledge(1)Amend(0)
From India, Hyderabad
Acknowledge(1)Amend(0)
This forum is primarily to provide guidance and suggestions on issues related to HR functions. What you have asked is related to a mathematical equation. Though CTC calculation is also part of HR, making a reverse calculation is something different.
Reverse Calculation of CTC
Now, coming to your points, the reverse calculation can be done only if we have a stepwise CTC structure dependent upon some percentage linked to the previous component. However, you can easily calculate the GROSS if you have all CTC components (basic pay structure, employer’s contributions, annual emoluments, etc.). Reverse calculation is not required at all.
Components of CTC
Other than GROSS, CTC has some extra components:
1. Components that are generally not paid on a monthly basis (Bonus, Gratuity, Leaves, etc.).
2. Employer contributions towards social security and other legal and statutory compliances (PF, ESI, PT, etc.).
3. Any other allowance which the company pays annually or half-yearly (LTA, Medical/Phone/Fuel Allowances, etc.).
Please share specific figures of your CTC or an Excel sheet, and a learned member will help you calculate the GROSS.
From India, Delhi
Acknowledge(0)Amend(0)
Reverse Calculation of CTC
Now, coming to your points, the reverse calculation can be done only if we have a stepwise CTC structure dependent upon some percentage linked to the previous component. However, you can easily calculate the GROSS if you have all CTC components (basic pay structure, employer’s contributions, annual emoluments, etc.). Reverse calculation is not required at all.
Components of CTC
Other than GROSS, CTC has some extra components:
1. Components that are generally not paid on a monthly basis (Bonus, Gratuity, Leaves, etc.).
2. Employer contributions towards social security and other legal and statutory compliances (PF, ESI, PT, etc.).
3. Any other allowance which the company pays annually or half-yearly (LTA, Medical/Phone/Fuel Allowances, etc.).
Please share specific figures of your CTC or an Excel sheet, and a learned member will help you calculate the GROSS.
From India, Delhi
Acknowledge(0)Amend(0)
Dear Bhavana, it's more like a mathematical calculation; we have to assume certain things and calculate the Gross. I hope this will help you.
Assuming Basic and Calculating Gross
If CTC is $23,000, assume Basic to be $11,500 (50% of CTC). PF (Employer side) is 12% of Basic, which equals $1,380. Subtracting PF from CTC gives $21,620. ESIC (Employer side) is 4.75% of $21,620, which equals $1,027. Subtracting ESIC from the assumed gross gives $20,593.
If $20,593 is the Gross, then calculate Basic as 50% of Gross, which is $10,000. PF (Employer) would be $1,200.
Steps to Calculate the Gross
To calculate the Gross:
$23,000 (CTC) - $1,200 (PF) = $21,800
4.75% of $21,800 = $1,035
Subtracting ESIC gives $20,765.
Repeating the Process
Repeat the process with each result:
$21,800 - {4.75% of $20,765 (986)}
$21,800 - {4.75% of $20,814 (988)}
$21,800 - {4.75% of $20,812 (988)}
If two consecutive results are the same, that amount will be the original ESIC (Employer) amount, which in this case is $988.
CTC - PF (Employer) - ESIC (Employer) = Gross
$23,000 - $1,200 - $988 = $20,812.
$20,812 will be the final Gross.
After deducting PF (Employee side), ESIC (Employee side, 1.75%), and PT from the Gross, the result will be the Net amount or Take-home amount.
From India
Acknowledge(0)Amend(0)
Assuming Basic and Calculating Gross
If CTC is $23,000, assume Basic to be $11,500 (50% of CTC). PF (Employer side) is 12% of Basic, which equals $1,380. Subtracting PF from CTC gives $21,620. ESIC (Employer side) is 4.75% of $21,620, which equals $1,027. Subtracting ESIC from the assumed gross gives $20,593.
If $20,593 is the Gross, then calculate Basic as 50% of Gross, which is $10,000. PF (Employer) would be $1,200.
Steps to Calculate the Gross
To calculate the Gross:
$23,000 (CTC) - $1,200 (PF) = $21,800
4.75% of $21,800 = $1,035
Subtracting ESIC gives $20,765.
Repeating the Process
Repeat the process with each result:
$21,800 - {4.75% of $20,765 (986)}
$21,800 - {4.75% of $20,814 (988)}
$21,800 - {4.75% of $20,812 (988)}
If two consecutive results are the same, that amount will be the original ESIC (Employer) amount, which in this case is $988.
CTC - PF (Employer) - ESIC (Employer) = Gross
$23,000 - $1,200 - $988 = $20,812.
$20,812 will be the final Gross.
After deducting PF (Employee side), ESIC (Employee side, 1.75%), and PT from the Gross, the result will be the Net amount or Take-home amount.
From India
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
CTC CALCULATION SHEET.xls