The question asked, to mu opinion, is can statutory benefits such as PF/ESI/Gratuity, etc. can be included in calculating CTC. What are the components of calculating CTC
From India, Calcutta
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5From India, Calcutta
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Components of CTC Basic DA HRA Conveyence Medical allow Other allow (Depending on rules of comp.) Sarfaraz
From India, Bangalore
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From India, Bangalore
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Dear Mr. Singh,
All the statutory compliances, which include the Employer's share, will be calculated in CTC.
- ESI: 4.75%
- PF: 13.61%
- LWF
- Bonus
- Gratuity (It is a five-year term; whenever an employee completes his five years of regular service, he will be eligible for gratuity if he leaves the service. At that time, it will be included in CTC)
Sanjeev
From India, New Delhi
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All the statutory compliances, which include the Employer's share, will be calculated in CTC.
- ESI: 4.75%
- PF: 13.61%
- LWF
- Bonus
- Gratuity (It is a five-year term; whenever an employee completes his five years of regular service, he will be eligible for gratuity if he leaves the service. At that time, it will be included in CTC)
Sanjeev
From India, New Delhi
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Hi,
There is no concrete/standard formula for CTC items. It varies from organization to organization. However, I am providing a general idea for CTC items:
1. Basic Pay
2. DA
3. HRA
4. Personal Allowances
5. Conveyance Allowance
6. Conveyance Reimbursement
7. LTA
8. Medical Allowance
9. Education Allowance
10. Any other Allowances
All the above constitute GROSS SALARY (Part A). Part B includes:
11. Employers share PF/ESI
12. Gratuity (4.81% of Basic Pay)
13. Leave Encashment
14. Mess subsidy
15. Incentive, if any
16. Cost of Uniform, if provided
17. Petrol Expenses
18. All other perks
The sum of A and B will arrive at CTC (Cost to the Company).
Regards,
V K Sharma
Tarapur
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There is no concrete/standard formula for CTC items. It varies from organization to organization. However, I am providing a general idea for CTC items:
1. Basic Pay
2. DA
3. HRA
4. Personal Allowances
5. Conveyance Allowance
6. Conveyance Reimbursement
7. LTA
8. Medical Allowance
9. Education Allowance
10. Any other Allowances
All the above constitute GROSS SALARY (Part A). Part B includes:
11. Employers share PF/ESI
12. Gratuity (4.81% of Basic Pay)
13. Leave Encashment
14. Mess subsidy
15. Incentive, if any
16. Cost of Uniform, if provided
17. Petrol Expenses
18. All other perks
The sum of A and B will arrive at CTC (Cost to the Company).
Regards,
V K Sharma
Tarapur
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1. Basic Pay is typically 40% of CTC (percentage varies across organizations).
2. HRA is usually 40%/50% of Basic Pay (varies based on whether it's an A or B class city as prescribed in the Income Tax Act).
3. LTA is determined by the Income Tax Act (some organizations provide it monthly at 12% or 8.33%, while others follow Income Tax provisions).
4. Medical Allowance (some organizations provide it monthly at 12% or 8.33%, while others follow Income Tax provisions).
5. Personal Allowance (part of CTC).
6. Education Allowance (as per Income Tax regulations).
7. Ex-Gratia (part of CTC).
8. PF/ESI/MLWF as per relevant Acts, with the employer's share only.
9. Gratuity at 4.81% of Basic Pay (including DA, where applicable).
10. Leave policy varies (encashment differs from organization to organization – some pay based on Basic Pay, others on Gross Salary).
11. Food Subsidy/Conveyance Subsidy.
12. Conveyance reimbursement.
13. Petrol Expenses at higher levels, or applicable for roles like salesmen.
14. Entertainment Allowances as per the IT Act.
15. Bonus as per the Bonus Act.
I hope this information meets your needs.
Have a great day!
V K Sharma
Tarapur
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2. HRA is usually 40%/50% of Basic Pay (varies based on whether it's an A or B class city as prescribed in the Income Tax Act).
3. LTA is determined by the Income Tax Act (some organizations provide it monthly at 12% or 8.33%, while others follow Income Tax provisions).
4. Medical Allowance (some organizations provide it monthly at 12% or 8.33%, while others follow Income Tax provisions).
5. Personal Allowance (part of CTC).
6. Education Allowance (as per Income Tax regulations).
7. Ex-Gratia (part of CTC).
8. PF/ESI/MLWF as per relevant Acts, with the employer's share only.
9. Gratuity at 4.81% of Basic Pay (including DA, where applicable).
10. Leave policy varies (encashment differs from organization to organization – some pay based on Basic Pay, others on Gross Salary).
11. Food Subsidy/Conveyance Subsidy.
12. Conveyance reimbursement.
13. Petrol Expenses at higher levels, or applicable for roles like salesmen.
14. Entertainment Allowances as per the IT Act.
15. Bonus as per the Bonus Act.
I hope this information meets your needs.
Have a great day!
V K Sharma
Tarapur
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Gratuity-Leave calculation on CTC-Rev..xls
Gratuity calculation.doc