Understanding CTC Calculation and Basic Salary Components

Hi Friends,

I want to know how to calculate the Basic Salary from CTC. Some of my friends have told me that "this is the reverse calculation of the salary." I am confused, please help me.

My company has Basic salary as 55%, HRA 40%, CCA Rs. 800/-, Medical 1250/-, and Special Allowance. The total of the above calculation is Gross Salary. Additionally, the company will pay apart from the salary as follows:

1. Employer Contribution towards the PF is Rs. 780/-
2. Group Medical Insurance Rs. 1000/- (approximately)
3. Meals Coupon Rs. 1250/-

Please send me the reply with an example at the earliest.

Thanks & Regards,
Ravi

If annual CTC is given, how will we distribute it to BASIC, where 50% of the basic is allocated as HRA, and the amount calculated as basic is also provided as an annual bonus?

My query is, if an employee's Annual CTC is 200,000, how much would he be paid as basic, medical, and education?

Basic HOUSE RENT ALLOWANCE MEDICAL REIMBURSEMENT EDUCATION ALLOWANCE CONVEYANCE ALLOWANCE LEAVE TRAVEL ASSISTANCE PF (EMPLOYER CONTRIBUTION) OTHER ALLOWANCE

Hi,

My understanding of CTC is as follows:

The CTC is divided into two/three parts, i.e., Base Pay, Choice Pay, and in some companies, PLI. Let us assume:

CTC: 100
Base Pay: 40
Choice Pay: 50
PLI: 10

Now, the Base Pay includes Basic Pay, PF Contribution of Employer, and Gratuity. PF Contribution is 12% of Basic Pay, and Gratuity is 4.81% of Basic Pay. So the formula for calculating Basic Pay would be:

Basic Pay = Base Pay / 1.681

Choice Pay can be the amount which an employee has the option to decide from the given options, and PLI is the Performance Linked Incentive which is payable at the end of the period based on an individual's performance.

Thanks,
Pawan