HI ALL, THIS IS NEW CTC SCALE FOR INDUSTRIES RELATED. LET ME KNOW HOW IS IT. REGARDS, SHANKAR
From India, Hyderabad
4From India, Hyderabad
hello Shankarravi,,,
I liked the posting you have made...but I am not clear of the concept of cca & con. Will u pls highlight the same.
Also I wud lik to mention that the P Tax is Rs. 200 throughout the year except in Feb, wherein it is Rs. 300/- . It will be great if you mention in the post.
Thanks
Shriya Karve.
From India, Mumbai
I liked the posting you have made...but I am not clear of the concept of cca & con. Will u pls highlight the same.
Also I wud lik to mention that the P Tax is Rs. 200 throughout the year except in Feb, wherein it is Rs. 300/- . It will be great if you mention in the post.
Thanks
Shriya Karve.
From India, Mumbai
Very good. But I have a suggestion. Please do not show employer's contribution to EPF/ ESI in the pay slip. I agree that these are costs to company, but showing it in the pay slip will be intrepreted as deducting the employer's share of contribution from the slary of employees which is illegal. Similarly annual payment based on profits like Bonus (which is paid only to those whose salary doesnot exceed Rs 10000) shall also be avoided in the monthly pay slip. Once it is shown it becomes a commitment on the part of the employer. I did'nt get the practice of adding 20% of (basic salary , I presume) as part of CTC and then showing 8.33% as deduction. Please clarify.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
CCA is City Compensation Allowance @ 10% on basic
Con. is Conveyance @10% on basic
(One more thing is that, ecaxtly i don't know that, is the P.T. Slab is changed? as per my knowldge the P.T. slab is revised and its starts from Rs. 5001/- ? is it right? if you know pls let me know the same.)
Thanking you
Shankar
From India, Hyderabad
Con. is Conveyance @10% on basic
(One more thing is that, ecaxtly i don't know that, is the P.T. Slab is changed? as per my knowldge the P.T. slab is revised and its starts from Rs. 5001/- ? is it right? if you know pls let me know the same.)
Thanking you
Shankar
From India, Hyderabad
Mr. Madhu,
in CTC sclae the 20% of bonus is caluculated on the basic salary,
and 11.73% shall be added on everymonth salary, the remaing 8.33% (approximately one basic salary per year) shall be given once in a year.
and also note that, in total deductions exept ESI & PT the remaing deduction is showing a savings.
i hope you understand.
Regards,
Shankar
From India, Hyderabad
in CTC sclae the 20% of bonus is caluculated on the basic salary,
and 11.73% shall be added on everymonth salary, the remaing 8.33% (approximately one basic salary per year) shall be given once in a year.
and also note that, in total deductions exept ESI & PT the remaing deduction is showing a savings.
i hope you understand.
Regards,
Shankar
From India, Hyderabad
Hi Shankar, I was about to ask about what Madhu asked. I have gone through your reply but still it is not clear to me. Can you please elaborate about percentage for bonus (20 % - 8.33%...) - Hiten
From India, New Delhi
From India, New Delhi
Dear Mr. Shankar,
I am very sorry, I could not follow you. 20% and 8.33% are the maximum and the minimum bonus payable as per Payment of Bonus Act. Any higher percentage of Bonus above 8.33% will be decided only after considering the 'available surplus' which in turn depends on the net profit as shown by the Profit & Loss account. How can an employee say that he will be able to pay 20% bonus every year. Of course, 8.33% is statutory bonus which has to be paid even if the company incurs loss. Therefore, it is justifyable to show the amount of minimum bonus as part of remuneration to employee. ( I prefer not to use the word Cost to company because there are so many benefits to company also due to the employment of a worker)
I didnot mean to disturb your system. But i meant to say that showing employer's share of contributions to EPF/ESI could be intrepreted as deducting his own share from the salary WHICH IS ILLEGAL. Above all, the practice of "CTC" itself is a game to attract poor candidates as it gives a good picture but in reality nothing actully materialise.
Regards,
Madhu.T.K
From India, Kannur
I am very sorry, I could not follow you. 20% and 8.33% are the maximum and the minimum bonus payable as per Payment of Bonus Act. Any higher percentage of Bonus above 8.33% will be decided only after considering the 'available surplus' which in turn depends on the net profit as shown by the Profit & Loss account. How can an employee say that he will be able to pay 20% bonus every year. Of course, 8.33% is statutory bonus which has to be paid even if the company incurs loss. Therefore, it is justifyable to show the amount of minimum bonus as part of remuneration to employee. ( I prefer not to use the word Cost to company because there are so many benefits to company also due to the employment of a worker)
I didnot mean to disturb your system. But i meant to say that showing employer's share of contributions to EPF/ESI could be intrepreted as deducting his own share from the salary WHICH IS ILLEGAL. Above all, the practice of "CTC" itself is a game to attract poor candidates as it gives a good picture but in reality nothing actully materialise.
Regards,
Madhu.T.K
From India, Kannur
Dear Frnd,
Basic : 55%
House Rental Allowance : 25%
City Compensation Allowance : 10%
Conyeance : 10%
Total (Gross) : 100%
Company Contributions
Bonus : 20% on basic
PF : 12% on basic (if basic is Rs. 6500/- the company is fixed Rs. 780/-)
ESI : 4.75% on basic
Total is called CTC : 100% + 36.75%
Employee contributions
PF : 12% on basic
ESI : 1.75% on basic
PT : depends on gross
Now your drought is that, in 20% of bonus 11.73% shall be added on his salary (called advance bonus) i.e. 8.33% shall be deduct from every month salary the same may be given once in a month (here company once fixed the CTC and nowhere involved in any kind of payment modes.)
Thanking you,
Regards,
Shankar
From India, Hyderabad
Basic : 55%
House Rental Allowance : 25%
City Compensation Allowance : 10%
Conyeance : 10%
Total (Gross) : 100%
Company Contributions
Bonus : 20% on basic
PF : 12% on basic (if basic is Rs. 6500/- the company is fixed Rs. 780/-)
ESI : 4.75% on basic
Total is called CTC : 100% + 36.75%
Employee contributions
PF : 12% on basic
ESI : 1.75% on basic
PT : depends on gross
Now your drought is that, in 20% of bonus 11.73% shall be added on his salary (called advance bonus) i.e. 8.33% shall be deduct from every month salary the same may be given once in a month (here company once fixed the CTC and nowhere involved in any kind of payment modes.)
Thanking you,
Regards,
Shankar
From India, Hyderabad
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