Dear all,
I have been asked to give the current CTC in a company. Please clarify what is CTC means and what it includes?
Whether a new employer likes CTC to be more or less? What for he is asking that instead of gross package or take home salary?
Thank you.
From India, Coimbatore
1I have been asked to give the current CTC in a company. Please clarify what is CTC means and what it includes?
Whether a new employer likes CTC to be more or less? What for he is asking that instead of gross package or take home salary?
Thank you.
From India, Coimbatore
CTC is Cost to Company and CTC is always the annual package..CTC is always the gross that company gives you it includes PF, Gratuity and other deductions..CTC is not in hand salary
From India, Pune
From India, Pune
Hi Raj,
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
Mobile Reimbursement / Month
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.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
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
TA
Other Allowance
Mobile Reimbursement / Month
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.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
Thanks Mithun.
By the way, the company in which I'm working for doesn't provide Gratuity, PF, etc. But spends amount for food, accomodation and TA charges. Whether it will be included in CTC? What is the normal CTC for a entry level professional in a manufacturing industry?
From India, Coimbatore
By the way, the company in which I'm working for doesn't provide Gratuity, PF, etc. But spends amount for food, accomodation and TA charges. Whether it will be included in CTC? What is the normal CTC for a entry level professional in a manufacturing industry?
From India, Coimbatore
It really depends , i would say that its always better to talk to your HR and your finance department .They will give you the best information
From India, Pune
From India, Pune
Dear Amit and Mithun,
I need a clarification. I was working outside India and I was paid only the basic salary + bonus. Food and accomodation was provided free of cost. Except this, there is no PF or ESI or other allowances. I also dont have a proper salary slip. In this case, how should i calculate my CTC.
Thanks.
From India, Coimbatore
I need a clarification. I was working outside India and I was paid only the basic salary + bonus. Food and accomodation was provided free of cost. Except this, there is no PF or ESI or other allowances. I also dont have a proper salary slip. In this case, how should i calculate my CTC.
Thanks.
From India, Coimbatore
Hi Rajkumar_Victor,
I may perhaps be able to simplify for you further.
CTC is an abbreviated form of 'Cost to the Company'. It means the total of all that the Company is spending on you. But 'Gross' is the total salary and benefits that you draw from a Company.
Companies over the years adopted the CTC concept so that they could compute the total money spent on an employee. So, CTC includes every expense (basic salary + allowances and non-official reimbursements) on you that you can imagine (except, of course, official expenses).
To calculate your CTC for your job abroad, you need to add your basic (i.e. base pay) and (fixed) bonus first. Then you have to calculate a money value for the accommodation, meals provided by the Company. (Think practically what you would have paid for the same accommodatin and food if you had to pay for it) Add all these and you will arrive at your CTC value.
Rahul
09968270580
From India, New Delhi
I may perhaps be able to simplify for you further.
CTC is an abbreviated form of 'Cost to the Company'. It means the total of all that the Company is spending on you. But 'Gross' is the total salary and benefits that you draw from a Company.
Companies over the years adopted the CTC concept so that they could compute the total money spent on an employee. So, CTC includes every expense (basic salary + allowances and non-official reimbursements) on you that you can imagine (except, of course, official expenses).
To calculate your CTC for your job abroad, you need to add your basic (i.e. base pay) and (fixed) bonus first. Then you have to calculate a money value for the accommodation, meals provided by the Company. (Think practically what you would have paid for the same accommodatin and food if you had to pay for it) Add all these and you will arrive at your CTC value.
Rahul
09968270580
From India, New Delhi
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