Hello Friends!
I am a student doing my MBA in HR.I have to design a comp&Ben structure of a hypothetical company. If any body has any relevant information that will help me in designing, pls forward it to me.
Thanks
From India, Pune
I am a student doing my MBA in HR.I have to design a comp&Ben structure of a hypothetical company. If any body has any relevant information that will help me in designing, pls forward it to me.
Thanks
From India, Pune
Dear Kalyani,
You may follow this structure as well..
Anyways the Basic would be approx 40 - 50% of groos, and 40 - 60 % of that would be HRA,Conveyance Allowance is fixed-800/- and its exempted fro Tax. Educational Allowance that is 200 per children and restricted upto 2 only.
Medical allowance is 1250/- which is also exempted from tax.
Other allowance is the remaining amount to complete the Gross salary, i.e
Other Allowance = Gross - (Basic+HRA+CA+Medical+Edu All)
So can say Gross Salary = Basic+HRA+CCA+Edu+Other Allowance
Medical allowance if provided as reimbursement shall be exempted from taxes and ceiling is rs. 1250 / month.
Whereas out of this only two components may be deducted, one if PF which would be 12% of Basic and ESI 1.75% of gross if only Gross is below 10,000/-.
Above I have explained only regarding the Gross/Month. Regarding CTC you have to do some more exercise-
First Calculate Gross / Annum = 12*Gross/Month
then add Ex-Gratia or Bonus in lum sum it will now become AFGC (Annual Fixed Gross Cost)
Then Add PF contribution and ESI 4.75 % of Gross if applicable from the employer side per annum then it come your CTC or ATC.
It means CTC = Gross/Annum+EX-Gratia+PF & ESI contribution
If any other benefits are being provided from company side then you add also to conclude your CTC.
Hope it will be now very much clear with you, if get any query then feel free to revert.
Regards,
Amit Seth.
From India, Ahmadabad
496You may follow this structure as well..
Anyways the Basic would be approx 40 - 50% of groos, and 40 - 60 % of that would be HRA,Conveyance Allowance is fixed-800/- and its exempted fro Tax. Educational Allowance that is 200 per children and restricted upto 2 only.
Medical allowance is 1250/- which is also exempted from tax.
Other allowance is the remaining amount to complete the Gross salary, i.e
Other Allowance = Gross - (Basic+HRA+CA+Medical+Edu All)
So can say Gross Salary = Basic+HRA+CCA+Edu+Other Allowance
Medical allowance if provided as reimbursement shall be exempted from taxes and ceiling is rs. 1250 / month.
Whereas out of this only two components may be deducted, one if PF which would be 12% of Basic and ESI 1.75% of gross if only Gross is below 10,000/-.
Above I have explained only regarding the Gross/Month. Regarding CTC you have to do some more exercise-
First Calculate Gross / Annum = 12*Gross/Month
then add Ex-Gratia or Bonus in lum sum it will now become AFGC (Annual Fixed Gross Cost)
Then Add PF contribution and ESI 4.75 % of Gross if applicable from the employer side per annum then it come your CTC or ATC.
It means CTC = Gross/Annum+EX-Gratia+PF & ESI contribution
If any other benefits are being provided from company side then you add also to conclude your CTC.
Hope it will be now very much clear with you, if get any query then feel free to revert.
Regards,
Amit Seth.
From India, Ahmadabad
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