How can I calculate the salary ? Let’s say the package is 3.5 lac per annum. What is the percentage of PF, Allowance etc???? Sumedha Grover
From India, Gurgaon
From India, Gurgaon
Hello,
Is the figure one called CTC?
Is there no break up provided along following heads of earnings?
1) Basic
2) Dearness Allowance
3) Other allowances
4) Indirect expenses
5) Incidentals etc.
This kind of a break up would be provided in case of CTC and even otherwise, does the employer have standard gradewise emolument structure?
It is also possible that a new joinee is given the freedom to create his break up to suit Income Tax incidence.
What category is applicable to our case?
Regardless of above, kindly note that PF is applicable (as of this date) on a (Basic+D.A.) upto Rs. 6500/- per month. If we assign this factor to be above this figure then you have two choices really. Either restrict PF contributions to this fighre OR simply keep the person out of PF coverage even if the act is applicable to establishment and a few employees are covered under it anyway! Then ESI is applicable in "notified areas" (by ESIC) to employees drawing a total salary/wage of Rs. 10000/- per month.
Similar approach may be taken for other acts depending their provisions.
If I can help further kindly do not hesitate!
Regards
samvedan
October 12, 2007
From India, Pune
315Is the figure one called CTC?
Is there no break up provided along following heads of earnings?
1) Basic
2) Dearness Allowance
3) Other allowances
4) Indirect expenses
5) Incidentals etc.
This kind of a break up would be provided in case of CTC and even otherwise, does the employer have standard gradewise emolument structure?
It is also possible that a new joinee is given the freedom to create his break up to suit Income Tax incidence.
What category is applicable to our case?
Regardless of above, kindly note that PF is applicable (as of this date) on a (Basic+D.A.) upto Rs. 6500/- per month. If we assign this factor to be above this figure then you have two choices really. Either restrict PF contributions to this fighre OR simply keep the person out of PF coverage even if the act is applicable to establishment and a few employees are covered under it anyway! Then ESI is applicable in "notified areas" (by ESIC) to employees drawing a total salary/wage of Rs. 10000/- per month.
Similar approach may be taken for other acts depending their provisions.
If I can help further kindly do not hesitate!
Regards
samvedan
October 12, 2007
From India, Pune
Hi Sumedha,
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
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling 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 as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Hope it must help you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling 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 as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Hope it must help you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
Dear Friend,
Kindly click on the following link, it will give you some required information,
https://www.citehr.com/download-list.php?query=Salary
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
Regards
M. Peer Mohamed Sardhar
093831 93832
From India, Coimbatore
Kindly click on the following link, it will give you some required information,
https://www.citehr.com/download-list.php?query=Salary
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
Regards
M. Peer Mohamed Sardhar
093831 93832
From India, Coimbatore
Please take simple Example i.e
CTC of an employee is 1,20,000 p.a------------------------------------------
BASIC - 4000, 40% of monthly gross Salary, i.e Rs.10000/- pm
HRA - 2220, 22.20% of monthly gross Salary
SPL PAY - 2500, 25% of monthly gross Salary
PF - 480, 12% of monthly gross Salary
COVEYANCE - 800 FIXED
From Switzerland, Zurich
Hi Sumedha,
I agree almost what Mr. Amit Seth has written. Except in 2 areas: -
1. I take PF contribution of employer as 13.61% while calculating CTC
2. I take the gratuity also, as we need to pay it in actuals to insurance company, every year.
Some of the companies take leave cost also.
Further try to keep Basic + DA to the tune of 50% of monthly gross to benefit employee, as 40% of Basic & DA (for metro city) and 30% (for a non metro city) is exempted as HRA from IT.
To calculate monthly Gross:
1. Take away annual payments, from CTC, and divide it by 12 to get the monthly CTC.
2. Decide on basic & DA, and take away the employers contribution of PF & ESI.
Hope it will help you.
Regards,
Manas Das
From India, Delhi
I agree almost what Mr. Amit Seth has written. Except in 2 areas: -
1. I take PF contribution of employer as 13.61% while calculating CTC
2. I take the gratuity also, as we need to pay it in actuals to insurance company, every year.
Some of the companies take leave cost also.
Further try to keep Basic + DA to the tune of 50% of monthly gross to benefit employee, as 40% of Basic & DA (for metro city) and 30% (for a non metro city) is exempted as HRA from IT.
To calculate monthly Gross:
1. Take away annual payments, from CTC, and divide it by 12 to get the monthly CTC.
2. Decide on basic & DA, and take away the employers contribution of PF & ESI.
Hope it will help you.
Regards,
Manas Das
From India, Delhi
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