Hi,
I am preparing a ppt on "how to decide CTC components". Can anyone tell me the statutory components in CTC?
Also, is PF mandatory?
Its urgent.
Thanks in advance,
Gaurav
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From India, Pune
9I am preparing a ppt on "how to decide CTC components". Can anyone tell me the statutory components in CTC?
Also, is PF mandatory?
Its urgent.
Thanks in advance,
Gaurav
------------------------------
From India, Pune
Dear Gaurav, Bonus, PF, ESI or Mediclaim, LV encashment and Gratuity is optional most will take some will not consider in CTC. Regs Reshma India
From India, Madras
From India, Madras
CtoC in the normal course will have components as detailed below:
Basic Pay- House Rent Allowance( 50% of basic)-Other Allowance( 20% of basic)-Food and Conveyance allowances-( each Rs 800 per month -excempted from Income Tax) all payable every month. Annual Benefits would include Bonus( 20% of the basic) , LTA- equal to one month's Basic). Medical Reimbursements( Rs 15000 per annum-excepmted from Income Tax. and PF contriburted by the employer ( 12% of basic)
From India, Madras
Basic Pay- House Rent Allowance( 50% of basic)-Other Allowance( 20% of basic)-Food and Conveyance allowances-( each Rs 800 per month -excempted from Income Tax) all payable every month. Annual Benefits would include Bonus( 20% of the basic) , LTA- equal to one month's Basic). Medical Reimbursements( Rs 15000 per annum-excepmted from Income Tax. and PF contriburted by the employer ( 12% of basic)
From India, Madras
CTC means cost to company.
So, a Company would include the complete cost it would incurr for that person.
It would include the PF, Gratuity, Superannuation, Insurance Premium, etc along with the normal components of salary.
However, it is a policy decision of every organization what they want to include in CTC.
From India, New Delhi
So, a Company would include the complete cost it would incurr for that person.
It would include the PF, Gratuity, Superannuation, Insurance Premium, etc along with the normal components of salary.
However, it is a policy decision of every organization what they want to include in CTC.
From India, New Delhi
CTC refers to Cost to the Company.
CTC ("COST TO COMPANY") is termed as the "Sum of all the rewards and benefits provided to an employee provided from the Employer in addition to the Salary that has been paid."
Thus CTC is the total cost incurred on an employee by the employer / company.
So while calculating the CTC for an employee, the company necessarily needs to include the following:
1. PF
2. ESI (if the Gross Monthly is going to be <= Rs. 10,000)
3. Insurance Cover taken for an employee - Accident Cover , Medical or Health Insurance Cover
4. Gratuity (it is an active component that is included in the CTC, but an employee is eligible to get this benefit at the time of settlement; if they happen to serve in the company for atleast five years)
5. Superannuation
6. Monthly Salary Components
7. Annual Benefits like Medical Allowance, Annual Bonus, LTA etc.
Note: Maternity Benefit for Women and Leave Encashment will not be a part of CTC.
From India, Madras
CTC ("COST TO COMPANY") is termed as the "Sum of all the rewards and benefits provided to an employee provided from the Employer in addition to the Salary that has been paid."
Thus CTC is the total cost incurred on an employee by the employer / company.
So while calculating the CTC for an employee, the company necessarily needs to include the following:
1. PF
2. ESI (if the Gross Monthly is going to be <= Rs. 10,000)
3. Insurance Cover taken for an employee - Accident Cover , Medical or Health Insurance Cover
4. Gratuity (it is an active component that is included in the CTC, but an employee is eligible to get this benefit at the time of settlement; if they happen to serve in the company for atleast five years)
5. Superannuation
6. Monthly Salary Components
7. Annual Benefits like Medical Allowance, Annual Bonus, LTA etc.
Note: Maternity Benefit for Women and Leave Encashment will not be a part of CTC.
From India, Madras
i would like to make a correction in the detail give my one my friend regarding the PF contribution of employer in the CTC working .in the CTC working we will show the PF contribution of the Employer 13.61.
From India, Thiruvananthapuram
From India, Thiruvananthapuram
dear ones / hi im looking for the format of off-roll and on-roll ,employers letter format so , kindly nyone can help me in this manner thanks & regards SAGAR SHARMA DEE HR SOLUTIONS
From India, Kota
From India, Kota
Thanks Everyone for your valuable time in answering my query. However I did not get the clarification on statutory components in CTC.
I believe Basic salary has to be a part of CTC.
I would like to know if HRA, conveyance allowance and any other component should be the part of CTC.
Gaurav
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From India, Pune
I believe Basic salary has to be a part of CTC.
I would like to know if HRA, conveyance allowance and any other component should be the part of CTC.
Gaurav
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From India, Pune
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