How is basic calculated from CTC? Suppose my employer asks me to provide a candidate with a salary of 2,40,000 per annum. What will be the procedure to create the salary breakdown and calculate the basic from this CTC?
From India, Kolkata
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From India, Kolkata
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Dear Subhadeep,
Deduct all annualized items (e.g., Bonus, LTA, etc.) and also the employer's portion of PF & ESI from CTC. Divide it by 12 to get the monthly gross.
Based on the latest ruling of the Apex court, it is better to divide the monthly gross into two components - Basic & HRA. Put more emphasis on Basic and allocate less to HRA (based on your organization's policy).
Thanks & Regards,
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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367Deduct all annualized items (e.g., Bonus, LTA, etc.) and also the employer's portion of PF & ESI from CTC. Divide it by 12 to get the monthly gross.
Based on the latest ruling of the Apex court, it is better to divide the monthly gross into two components - Basic & HRA. Put more emphasis on Basic and allocate less to HRA (based on your organization's policy).
Thanks & Regards,
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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SALARY SHEET CALCULATION.xls
Salary calculation.doc