Hi Everybody!
This is Partho. I want to know about the detailed CTC components. Is the CTC figure reflected on the offer letter inclusive of the PF (Employer contribution) and ESI (Employer contribution) along with the Employee? What is the process for TDS deduction? Please let me know as soon as possible.
Thanks,
Partho
From India, Calcutta
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This is Partho. I want to know about the detailed CTC components. Is the CTC figure reflected on the offer letter inclusive of the PF (Employer contribution) and ESI (Employer contribution) along with the Employee? What is the process for TDS deduction? Please let me know as soon as possible.
Thanks,
Partho
From India, Calcutta
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Hi Partho,
The components of the salary breakup may be as below, and you can prepare it according to your own suitability. HRA would 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 who are not covered under ESI, as the maximum ceiling for ESI is 10,000/Month. Amounts exceeding this will be covered under Mediclaim or as per 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.
Yes, PF and ESI contributions from the employer side are included in the CTC.
As per government tax rules, separate ceilings have been set for both genders:
- For Males: Those earning more than 1.1 lakhs/annum have to pay taxes.
- For Females: The threshold is 1.5 lakhs/annum.
I hope this information helps you in preparing the same on your end.
Regards,
Amit Seth.
From India, Ahmadabad
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508The components of the salary breakup may be as below, and you can prepare it according to your own suitability. HRA would 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 who are not covered under ESI, as the maximum ceiling for ESI is 10,000/Month. Amounts exceeding this will be covered under Mediclaim or as per 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.
Yes, PF and ESI contributions from the employer side are included in the CTC.
As per government tax rules, separate ceilings have been set for both genders:
- For Males: Those earning more than 1.1 lakhs/annum have to pay taxes.
- For Females: The threshold is 1.5 lakhs/annum.
I hope this information helps you in preparing the same on your end.
Regards,
Amit Seth.
From India, Ahmadabad
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Monthly Salary Statement - CTC and TDS Calculator.xls