maniakhil
1

We have set up a new ITES services company and mostly engineers are working in different levels like Design Engineer, Prject Engineer ,Team Member and Prject managers. Pl sugeest us salary structure by posting Your company's salary structures. WE are based at south india(Coimbatore).
From India, Bangalore
Amitmhrm
496

Hi Meenakshi,

CTC stands for cost to the company i.e the total expenditure of the company towards a particular employee. It includes each and every cost in terms of money and materials, some of the components are-

Gross Salary

Bonus

PF Contribution from employer side

ESI or Medical contribution from Employer side

Cell Phone Allowance

Hard furnishing goods

Food coupons

The contents of the salary break up is as below, you can prepare it at the

suitability of your own.

HRA would be50 or 60% of 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 provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.

Getting more than this will be covered under Mediclaim or it depends on

company policy

Annual Fixed Gross Cost= Gross/Annum+PF+ESI+Med

EX-Gratia/Bonus = A fixed amount as Bonus

Annual Total Cost = AFGC + EX Gratia/Bonus

Annual total cost is also called as CTC.

Hope now it will be very much clear to you,,

if you have any query feel free to ask.

Regards,

Amit Seth.

From India, Ahmadabad
sivaranjanimira
Hi Amit, I’m having a doubt in HRA. In our office we are giving 40% HRA from the basic salary. Is that right or wrong? Pls clarify Thanks & Regards, Sivaranjani Sriram
From India, Madras
BAVANI
3

hi For Non-metro the exemption of TDS in case of HRA is only 40% and in case of Metro is 50%. But it is upto you to assign even 50 to 70% as HRA. As u r in coimbatore it is 40%. regards bavani
From India, Madras
maniakhil
1

Dear All, Can u pl forward your company’s present salary structure as an attachment. regards
From India, Bangalore
BAVANI
3

hi,

this is the common structure which will serve as a guidance for you.

BASIC - 30% OF TOTAL CTC (IT MAY GO UPTO 60% WHICH IS ADVISABLE NOT MORE THAN THAT)

DA - NIL (you can eliminate this as nowadays everything we work on basic and it doesn't make any difference. if you prefer to have DA, ensure that the Basic and DA doesnot exceed 30% ~ 60%)

HRA - 40 % of Basic in case of non-metro & 50% in case of metro

Medical - 1250 pm (15000 is exempted if an employee provides bill else taxable)

Transport - 800 pm (its fully exempted)

Uniform Allowance - 300 to 500 (any nominal amount to maintain uniform is exemted, if you provide uniform)

Educational allowance - 100 per month per kid and maximum two kids are exempted

Hostel Allowance - 150 per month per kid and maximum two kids are exempted from tax

Flexi Allowance - any other amount can be included in this field.

Deductions :

PF - 12 % of basic (both employer and employee)

LTA - 1 month of basic per annum (which will be paid to them once in two years and exempted once in two years if they provide bills)

Gratuity (compulsary if they complete 5 yrs of service) and superannuation is optional. if the co., agrees it can be deducted from the monthly salary.

regards

bavani

From India, Madras
neeraja2712
Hi Please suggest which components of CTC and fringe benefits are exempted from Tax (as per financial Budget-2008-09) Regards Neeraja
From India, Hyderabad
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