Statutory Components In CTC

Hi Gaurav,
CTC Consits of Basic, HRA, Child Education Allow.Special Allowancing (Balancing Figure), Medical Reimbursement, Telephone Reimb. PF (12% of Basic Employer COntribution) ESIC (Employer Contribution 4.75%) Gratuity (4.81 % of Basic eligibility is after completion of 5 yerars of service ) Meal VOucher payable in the form of Voucher .
Piyush

Dear Gaurav,
The Statutory components of CTC are:
1. Provident Fund
2. ESI (Gross salary of Rs.10000/- or less)
3. Bonus
4. Gratuity
5. Leave Encashment
Amit has correctly answered your query. However Insurance Premium is not a Statutory obligation.
Best Wishes,
Vasant Nair
HR Advisor

My self Nisha working as a HR/Admin for past two years. Can anyone help to get the salary break up. I was trying to divide but then the sum of all is not equal to the total of Gross salary. I would request Please help me out this .
Gross Salary 70,000.00


Basic Salary 35,000.00 50%of Gross
HRA 17,500.00 50% of basic
Conveyance Allowance 800.00 fixed 9600p.a
LTA 2,917.07 One month's basic pay
Medical Insurance 1,250.00 fixed 15000 p.a
Other Allowance 7,000.00 20%of basic

TOTAL 64,467.07

dear all,
Prof tex will not a part of CTC & Only 12% of employer PF is a part of CTC
Regards
Madan Nayak

Dear Nisha,
Are you sure Rs.70K is Gross Salary and not CTC. Please let me know the exact CTC and I will give you the break up.
Vasant Nair

Dear Brother,
The current practice are differ for Staff & workman
For Staff :
Monthly basis :
Basic
HRA
Conveyance Allowance
Spl. Allowance
PF
Annual Benefits :
Medical Reimbursement
LTA
Bonus
Gratuity (Can only claim after completion of 5 years of service)
For workman :
Monthly basis :
Basic
HRA
Conveyance Allowance
Spl. Allowance
Medical Allowance
Education Allowance
Washing Allowance
PF
Annual Benefits :
LTA
Bonus
Gratuity (Can only claim after completion of 5 years of service)

I am quite sure that people having taken wrong way. Gratuity, is never included in CTC. It is well wish (part of welfare) employer is paying on the succesful completion of 5 years and more. Further on PF part only 12% is calculation and ESI, 1.75% but some of companies even don't these into the CTC. - As this is also part of welfare part honory given my employer in compulsion of the Govt.

Dear Gaurav,
CTC is like cost to company.So company has to take decision while making CTC.But mostly these components are coming Basic,HRA,Con.allow,OD.allow(if u have feild staff) ,PF,Gratiuity,Ex-gratia/bonus,ESI.
And more over PT is deducted on Gross salary of Employee its not coming under CTC.
Based on position of Employee also the CTC is going to be decide like
Grade-1,
Grade-2,
Grade-3.
Regards
Malini.

Dear All,
Thanks for answering my query. It really helped me for the presentation.
However please help in understanding the compulsory components in CTC. (I believe basic is one of them.)
Thank in advance,
Gaurav
-----------------------------

Hi Nisha,

PF
PF is contributed @ 12% of basic salary from both the sides employee as well as employer.. Out of this 12+12 = 24%, 8.33% goes to Pension Fund and rest 15.67% goes to Provident Fund ..
For the calculation the maximum limit of Basic is Rs 6500/-. It means even if the employee's basic salary is above Rs 6500/- the employer is liable to contribute only on Rs 6500/-, that is Rs 780. However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges.

A/c No 1: PF contribution Account (12% of employee+3.67% of employer)
A/c No 2: PF Admin account (1.1 % of Basic)
A/c No 10: EPS account (8.33% of basic)
A/c No 21: EDLIS account (0.5% of basic)
A/c No 22: EDLIS admin account (0.01% of basic)

ESIC
ESI is contributed from both the sides Employee as well as Employer.
It is been calculated on the basis of Gross salary per month and the maximum ceiling is 10000 Rs./Month.
The contribution from both the sides is as below-

Employee Side- 1.75% of gross/month
So if gross of an employee is 8000/month then
ESI contribution would be 8000*1.75% = 140 Rupees

Employer side- 4.75% of gross/month
ESI contribution would be 8000* 4.75% = 380 Rupees.

Employees have to fill up a declaration form FORM 1, written clearly Male or Female. All the declaration forms should be counter signed by the employer.
Then prepare a return of declaration in form 3 separate for Male & Female within 10 days of filling of declaration form.
Then every employee shall be alloted an temporary identification number.

Regards,
Amit Seth.