Basic Salary - Basic Salary Percentage [Thread 30509]

What is the spilt up of CTC?Can anybody help me how much percentage should be given?

Hi Divya..
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
TA
Other Allowance
MobileReimbursement / Month
Gross Per Month = Sum of all the above.
GrossPer Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESIContribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximumceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount asBonus
Annual Fixed GrossCost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
Regards,
Amit Seth.

How its Ex gratia calculated?
What is employer's contribution in PF
I got the following chart from somewhere. Can you please explain this?
Rates of Contribution
SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S
Provident Fund
Scheme 12%
Amount > 8.33%
(in case where NIL
contribution is 12%
of 10%)
10% (in case of
certain
Establishments as
per details given
earlier)

Insurance
Scheme NIL 0.5 NIL
Pension Scheme NIL 8.33% (Diverted
out of Provident
Fund 1.16%
Regards,
Pranita

Hi Pranita,
Ex-Gratia is a fixed amount... it is been added in the CTC as Bonus.
Its a part of CTC, it varies for different level of employees. I.e it is high for a high level and low for low level.. It is almost equal to two months basic salary..
Regarding PF, it is been contributed 12% of Basic from both the sides, i.e 12% from employee and 12% from employer side..
So the total contribution is 12+12= 24%
Out of this 24%
12% of employees contribution goes to Provident fund,
3.67% of employer contribution goes to Provident Fund and rest
8.33% of employer contribution remitted to Pension fund..
The maximum ceiling of PF contribution is 6500/- basic salary.. If any existing member exceeds this then also he can be a member of this fund but the maximum contribution will be calculated on the basis of 6500/- only..
Hope now it will be very much clear with you..
If still have any query feel free to revert..
Regards,
Amit Seth.

Some confusion is still left i.e.
What is employees' deposit linked insurance scheme, in which the contribution is .5%?
Are there any inspection charges and administrative charges which the employer has to pay?
Are these included in the 12% share of employer?
If the basic wage is more than Rs.6500 then also these have to be paid and in the same percentile?
Regards,
Pranita

Hi Pranita,

Employee's deposit linked Insurance scheme is a plan where the employer contribute 0.5% of basic of employees.. It generally been done of all the employees covered under Provident Fund...

The benefit of this scheme is that if any member dies while in service, an amount equal to the average balance in his provident fund account during the period of his membership is been paid to eligible member of his family. Except where the average balance exceeds Rs. 35000/- the amount payable shall be Rs. 35,000/- and 25% of the amount. But the maximum ceiling of amount to be paid can't exceed Rs. 60,000/-.

Yes, employer has to pay .18% of the basic pay as Inspection charges, whereas 1.10 % of the employees wages as Administrative charges of Provident Fund and 0.01% of the employees wages for administration of Deposit linked Insurance Fund..

These are the extra charges that employer has to pay except 12%.

If the employee is still a member of the Fund then definitely employer have to pay the same amount for the administration of their accounts too.

Hope now it will be very much clear with you..

Regards,

Amit Seth.

Dear Amit,
Frm this column pls solve my problem...
All the benefit & contribution calculated on basic salary.
Is there any particular format or formula to calculate basic salary.
Warm Regards,
Fahim Khan