Hi,
I am Harika,I am working as Hr executive.
Here I am facing a problem with salary calculation. My superiors will tell me the employee take home with that i need find the gross and the CTC. It is very hard to me find out , pls help me in this.
From India, Chennai
I am Harika,I am working as Hr executive.
Here I am facing a problem with salary calculation. My superiors will tell me the employee take home with that i need find the gross and the CTC. It is very hard to me find out , pls help me in this.
From India, Chennai
Hi Harika,
We are herewith attached the ctc calculator for your reference. You can enter the salary details in yellow highlighted cell, automatically the calculator will show the net take home salary, Gross. and CTC.
2 important things needs to be updated from your end.
- PT slab as per your TN location applicability needs to be input by you in the calculator
- GPA Insurance premium cost per employee if any needs to be input by you in the calculator.
If any clarification, please contact us.
Thanks.
From India, Bengaluru
8We are herewith attached the ctc calculator for your reference. You can enter the salary details in yellow highlighted cell, automatically the calculator will show the net take home salary, Gross. and CTC.
2 important things needs to be updated from your end.
- PT slab as per your TN location applicability needs to be input by you in the calculator
- GPA Insurance premium cost per employee if any needs to be input by you in the calculator.
If any clarification, please contact us.
Thanks.
From India, Bengaluru
Dear Sunihaji,
1. Components of Cost to Company (CTC):
- CTC is basically the sum total of Direct Benefits (sum paid to an employee on a yearly basis), Indirect Benefits (sum the employer pays on behalf of the employee), and Saving Contributions (saving schemes the employee is entitled to).
CTC = Direct Benefits + Indirect Benefits + Savings Contributions
A) DIRECT BENEFITS
- Basic Salary
-Dearness Allowance (DA)
-Conveyance Allowance
-House Rent Allowance (HRA)
-Medical Allowance
-Leave Travel Allowance (LTA)
-Vehicle Allowance
-Telephone/ Mobile Phone Allowance
-Incentives or bonuses
-Special Allowance/ City Compensatory allowance, etc.
B) INDIRECT BENEFITS
- Interest Free Loans
- Food Coupons/Subsidized meals
- Company Leased Accommodation
-Medical and Life Insurance premiums paid by employer
-Income Tax Savings
-Office Space Rent
C) SAVINGS CONTRIBUTION
-Superannuation benefits
- Employer Provident Fund (EPF)
-Gratuity
### Let’s elucidate what CTC looks like with an example:
Mr. A has been hired by a company at a CTC of Rs.4, 00,000. A breakdown of his yearly income is illustrated below:
Basic Salary: Rs.2, 20,000
HRA: Rs.88, 000
CA: Rs.19, 200
Medical Expenses: Rs.15, 000
EPF Contributions: Rs.21, 600 (@12%
Gratuity: Rs.18, 326
Special Allowance: Rs.17, 874
2. Gross Salary:
Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before deduction of taxes or other deductions and is inclusive of bonuses, over-time pay, holiday pay, and other differentials.
### For the same example listed above, let’s deduce Mr. A yearly salary by subtracting gratuity and Employee Provident Fund contributions.
Rs.4, 00,000 - Rs.21, 600 - Rs.18, 326 = Rs.3, 60,074
This amount will now be considered as his gross salary, which is his total personal income before taking taxes and other deductions into consideration.
3. Net Salary or Take-Home Salary:
-Net salary, more commonly known as Take-Home Salary, is the income that the employee actually takes home once tax and other such deductions are carried over with. It refers to the in-hand figure that is calculated after deducting Income Tax at source (TDS) and other deductions as per the relevant company policy.
-Net Salary is Income Tax deductions, Public Provident Fund, and Professional Tax subtracted from gross salary, which means,
Net Salary = Gross Salary (-) Income Tax (-) Public Provident Fund (-) Professional Tax
*** Employee Provident Fund are a stipulated percentage of the employee’s salary, typically no less than 12% of the basic salary. Whereas, gratuity is a percentage of the basic salary, typically 4.81% of the employee’s basic salary.
### Mr. A’s Salary Example:
In Mr. A’s case, he comes under the 10% tax slab as his salary falls between the Rs. 2,50,001- Rs. 5,00,000 range.
Mr. A’s income stands at Rs.3, 60,074.
10% of Mr. A’s income would come up to Rs.36, 007.4.
So, Mr. A’s income after tax and other deductions would be Rs.3, 24,066.6
For more details share your e-mail.
I hope It will be helpful in CTC Designing.
Regards,
Amit
From India, Delhi
1. Components of Cost to Company (CTC):
- CTC is basically the sum total of Direct Benefits (sum paid to an employee on a yearly basis), Indirect Benefits (sum the employer pays on behalf of the employee), and Saving Contributions (saving schemes the employee is entitled to).
CTC = Direct Benefits + Indirect Benefits + Savings Contributions
A) DIRECT BENEFITS
- Basic Salary
-Dearness Allowance (DA)
-Conveyance Allowance
-House Rent Allowance (HRA)
-Medical Allowance
-Leave Travel Allowance (LTA)
-Vehicle Allowance
-Telephone/ Mobile Phone Allowance
-Incentives or bonuses
-Special Allowance/ City Compensatory allowance, etc.
B) INDIRECT BENEFITS
- Interest Free Loans
- Food Coupons/Subsidized meals
- Company Leased Accommodation
-Medical and Life Insurance premiums paid by employer
-Income Tax Savings
-Office Space Rent
C) SAVINGS CONTRIBUTION
-Superannuation benefits
- Employer Provident Fund (EPF)
-Gratuity
### Let’s elucidate what CTC looks like with an example:
Mr. A has been hired by a company at a CTC of Rs.4, 00,000. A breakdown of his yearly income is illustrated below:
Basic Salary: Rs.2, 20,000
HRA: Rs.88, 000
CA: Rs.19, 200
Medical Expenses: Rs.15, 000
EPF Contributions: Rs.21, 600 (@12%
Gratuity: Rs.18, 326
Special Allowance: Rs.17, 874
2. Gross Salary:
Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before deduction of taxes or other deductions and is inclusive of bonuses, over-time pay, holiday pay, and other differentials.
### For the same example listed above, let’s deduce Mr. A yearly salary by subtracting gratuity and Employee Provident Fund contributions.
Rs.4, 00,000 - Rs.21, 600 - Rs.18, 326 = Rs.3, 60,074
This amount will now be considered as his gross salary, which is his total personal income before taking taxes and other deductions into consideration.
3. Net Salary or Take-Home Salary:
-Net salary, more commonly known as Take-Home Salary, is the income that the employee actually takes home once tax and other such deductions are carried over with. It refers to the in-hand figure that is calculated after deducting Income Tax at source (TDS) and other deductions as per the relevant company policy.
-Net Salary is Income Tax deductions, Public Provident Fund, and Professional Tax subtracted from gross salary, which means,
Net Salary = Gross Salary (-) Income Tax (-) Public Provident Fund (-) Professional Tax
*** Employee Provident Fund are a stipulated percentage of the employee’s salary, typically no less than 12% of the basic salary. Whereas, gratuity is a percentage of the basic salary, typically 4.81% of the employee’s basic salary.
### Mr. A’s Salary Example:
In Mr. A’s case, he comes under the 10% tax slab as his salary falls between the Rs. 2,50,001- Rs. 5,00,000 range.
Mr. A’s income stands at Rs.3, 60,074.
10% of Mr. A’s income would come up to Rs.36, 007.4.
So, Mr. A’s income after tax and other deductions would be Rs.3, 24,066.6
For more details share your e-mail.
I hope It will be helpful in CTC Designing.
Regards,
Amit
From India, Delhi
Hi Harika,
Firstly, why should your superior make you find the gross/ctc by giving you the net pay? It should have been OK if it would be the other way around. The deductions and the breakup is purely based on the compensation framed in your organization.
@ CONNECTONE DYNAMIC, the attachment is not generic. Might be that helps in your organization's breakup.
From India, Bangalore
Firstly, why should your superior make you find the gross/ctc by giving you the net pay? It should have been OK if it would be the other way around. The deductions and the breakup is purely based on the compensation framed in your organization.
@ CONNECTONE DYNAMIC, the attachment is not generic. Might be that helps in your organization's breakup.
From India, Bangalore
Adding to the above comments, please check with your boss about the standard deductions (statutory ; employee welfare ; etc) applicable as per your company policy. every company have different salary structure and deduction heads , therefore, there is no universal format applicable to all.
Over and above, the theoretical concept explain above by my friends are self explanatory. Trust it will resolve your quires now.
neelima
HR, Pune
Over and above, the theoretical concept explain above by my friends are self explanatory. Trust it will resolve your quires now.
neelima
HR, Pune
Hi Harika
It is advisable you take an online Payroll Management system. This helps you to:
1. Set salary components along with their formula; like - Basic, HRS, LTA allowances etc
2. Define salary structures for each designation type
3. Get automated component values based on total CTC you are offering a candidate
4. Run payroll in 4 simple steps
5. Issue Payslips online via email
6. Collect IT declaration and investment proofs
For more details, simply create a FREE Sign-up on FastCollab. Our team will train your team on how to go about it.
FastCollab | Marketplace | All-In-One Platform
From India, Hyderabad
It is advisable you take an online Payroll Management system. This helps you to:
1. Set salary components along with their formula; like - Basic, HRS, LTA allowances etc
2. Define salary structures for each designation type
3. Get automated component values based on total CTC you are offering a candidate
4. Run payroll in 4 simple steps
5. Issue Payslips online via email
6. Collect IT declaration and investment proofs
For more details, simply create a FREE Sign-up on FastCollab. Our team will train your team on how to go about it.
FastCollab | Marketplace | All-In-One Platform
From India, Hyderabad
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Calculate Your Age.xls
Guidelines to Calculate the Net Worth of Human Capital.pdf