Hello sir,
I'm confused about how to calculate the gross salary from the CTC. I checked the threads relating to this query but am still confused. My query is, if the CTC is 450,000 per annum, then how to find out the gross salary? Is it CTC - gratuity, or CTC - (company's contribution to PF + gratuity)?
Thanks and regards,
Sumit Sharma
From India
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1I'm confused about how to calculate the gross salary from the CTC. I checked the threads relating to this query but am still confused. My query is, if the CTC is 450,000 per annum, then how to find out the gross salary? Is it CTC - gratuity, or CTC - (company's contribution to PF + gratuity)?
Thanks and regards,
Sumit Sharma
From India
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Hi Sumit,
Calculating gross from CTC is a backward calculation that depends on several factors such as the allowances you receive, PF applicability, ESIC applicability, gratuity, and other components of your salary.
For example, although we typically mention that salary has two vital components - Basic Salary & Dearness Allowance (DA), most private firms do not show DA explicitly. They often state that the Basic includes DA. This is because DA is an adjustment given based on the rising cost of living due to inflation. The calculation of DA is complex and can vary. However, a common practice is to take DA as 20% of Basic for compensation calculations.
Assuming your CTC components are Basic, HRA, Conveyance, Medical Reimbursements, and Gratuity, we can proceed with the backward calculation. I excluded PF as your Basic (inclusive of DA) likely exceeds the prescribed ceiling amount of 6,500 per month.
Based on your provided CTC of 450000 pa and the assumed components distribution, your gross salary calculation could look like this:
Basic (Inclusive of DA): 2,25,000
HRA (50% assuming you are in a metro city): 1,12,500
Conveyance Allowance: 0,09,600
Medical Reimbursements: 0,15,000
Food Allowance: 0,15,000
Mobile Allowance: 0,50,000
Other Allowances: 0,12,083
===================================
Gross: 3,62,100
===================================
Gratuity (Employer's contribution for this year): 0,10,817
PF Contribution (Employer's end): 0,00,000
===================================
CTC: 4,50,000
Therefore, your gross per month would be 3,62,100 / 12 = 30,175.
Please note that the actual amount on your paycheck may differ due to deductions such as Professional tax, TDS, and other obligations. Gratuity is calculated based on the monthly basic salary, which in your case would be 18,750.
Your gratuity amount would be: 15 / 26 * 18,750 = 10,817.
From India, Mumbai
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Calculating gross from CTC is a backward calculation that depends on several factors such as the allowances you receive, PF applicability, ESIC applicability, gratuity, and other components of your salary.
For example, although we typically mention that salary has two vital components - Basic Salary & Dearness Allowance (DA), most private firms do not show DA explicitly. They often state that the Basic includes DA. This is because DA is an adjustment given based on the rising cost of living due to inflation. The calculation of DA is complex and can vary. However, a common practice is to take DA as 20% of Basic for compensation calculations.
Assuming your CTC components are Basic, HRA, Conveyance, Medical Reimbursements, and Gratuity, we can proceed with the backward calculation. I excluded PF as your Basic (inclusive of DA) likely exceeds the prescribed ceiling amount of 6,500 per month.
Based on your provided CTC of 450000 pa and the assumed components distribution, your gross salary calculation could look like this:
Basic (Inclusive of DA): 2,25,000
HRA (50% assuming you are in a metro city): 1,12,500
Conveyance Allowance: 0,09,600
Medical Reimbursements: 0,15,000
Food Allowance: 0,15,000
Mobile Allowance: 0,50,000
Other Allowances: 0,12,083
===================================
Gross: 3,62,100
===================================
Gratuity (Employer's contribution for this year): 0,10,817
PF Contribution (Employer's end): 0,00,000
===================================
CTC: 4,50,000
Therefore, your gross per month would be 3,62,100 / 12 = 30,175.
Please note that the actual amount on your paycheck may differ due to deductions such as Professional tax, TDS, and other obligations. Gratuity is calculated based on the monthly basic salary, which in your case would be 18,750.
Your gratuity amount would be: 15 / 26 * 18,750 = 10,817.
From India, Mumbai
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Hi can u please tell me how to calculate basic pay ..Is it 40 % on CTC r is it calculated on gross pay
From India, Bengaluru
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From India, Bengaluru
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GROSS SALARY&CTC FOR 15500.xls