Dear All,
I have assembled a provisional Cost to Company (CTC) in an Excel spreadsheet, which includes gratuity calculations.
Kindly review and suggest any necessary amendments.
From India, Mohali
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5I have assembled a provisional Cost to Company (CTC) in an Excel spreadsheet, which includes gratuity calculations.
Kindly review and suggest any necessary amendments.
From India, Mohali
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In order to review and suggest necessary amendments for your Cost to Company (CTC) calculation, it would be helpful to have more context about your company's policies and the specific elements you have included in your CTC calculation. However, I can provide some general guidance on how to calculate and include gratuity in the CTC.
Gratuity Calculation
Gratuity is a part of the CTC and it is calculated as follows:
- Basic Salary * 15/26 * Number of years of service
If your CTC includes basic salary, dearness allowance, and commission, the formula becomes:
- (Basic + Dearness Allowance + Commission) * 15/26 * Number of years of service
Please note that as per the Payment of Gratuity Act, 1972, an employee is eligible for gratuity only if they have completed 5 years of continuous service in a company.
CTC Calculation
Here is a general guide to calculating the CTC:
1. Start by adding the fixed pay elements. These usually include Basic Salary, House Rent Allowance (HRA), and other allowances such as Leave Travel Allowance (LTA), Medical Allowance, etc.
2. Add the variable pay elements. These could include bonuses, commissions, performance-linked pay, etc.
3. Add the contributions made by the employer towards PF, Gratuity, and any other benefits.
Remember to review the CTC regularly as changes in labor laws, tax laws, and company policies can impact the components and total of the CTC.
Also, make sure to communicate clearly to your employees about the CTC and its components. Misunderstandings can lead to dissatisfaction and even legal issues.
For more detailed information, you may want to refer to a trusted HR resource or consult with an HR professional or legal expert. One such resource is https://www.epfindia.gov.in for information related to EPF in India.
I hope this helps! Feel free to ask if you have any other questions.
From India, Gurugram
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Gratuity Calculation
Gratuity is a part of the CTC and it is calculated as follows:
- Basic Salary * 15/26 * Number of years of service
If your CTC includes basic salary, dearness allowance, and commission, the formula becomes:
- (Basic + Dearness Allowance + Commission) * 15/26 * Number of years of service
Please note that as per the Payment of Gratuity Act, 1972, an employee is eligible for gratuity only if they have completed 5 years of continuous service in a company.
CTC Calculation
Here is a general guide to calculating the CTC:
1. Start by adding the fixed pay elements. These usually include Basic Salary, House Rent Allowance (HRA), and other allowances such as Leave Travel Allowance (LTA), Medical Allowance, etc.
2. Add the variable pay elements. These could include bonuses, commissions, performance-linked pay, etc.
3. Add the contributions made by the employer towards PF, Gratuity, and any other benefits.
Remember to review the CTC regularly as changes in labor laws, tax laws, and company policies can impact the components and total of the CTC.
Also, make sure to communicate clearly to your employees about the CTC and its components. Misunderstandings can lead to dissatisfaction and even legal issues.
For more detailed information, you may want to refer to a trusted HR resource or consult with an HR professional or legal expert. One such resource is https://www.epfindia.gov.in for information related to EPF in India.
I hope this helps! Feel free to ask if you have any other questions.
From India, Gurugram
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Dear Community,
I am awaiting your valuable inputs on a critical matter. We need to issue revised documentation reflecting changes in the cost to company, specifically concerning gratuity calculations. Can anyone provide advice or feedback on this process? Thanks in advance for your assistance.
From India, Mohali
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I am awaiting your valuable inputs on a critical matter. We need to issue revised documentation reflecting changes in the cost to company, specifically concerning gratuity calculations. Can anyone provide advice or feedback on this process? Thanks in advance for your assistance.
From India, Mohali
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