What Is The Basic Salary Of CTC?

What is CTC in hand salary calculation?

Take Home Salary = Gross Salary – Income Tax – Employee’s PF Contribution(PF) – Prof.

Tax.Gross Salary = Cost to Company (CTC) – Employer’s PF Contribution (EPF) – Gratuity.Gratuity = (Basic salary + Dearness allowance) × 15/26 × No.More items….

What is the percentage of basic salary in CTC?

40-45%Basic Salary: This is the largest part of the salary structure and usually comprises 40-45% of CTC. It is the basis on which other additions in salary are calculated.

What is CTC in salary with example?

Cost to Company (CTC) is the yearly expenditure that a company spends on an employee. … Formula: CTC = Gross Salary + Benefits. If an employee’s salary is ₹40,000 and the company pays an additional ₹5,000 for their health insurance, the CTC is ₹45,000. Employees may not directly receive the CTC amount as cash.

What is the CTC salary?

Cost to companyCost to company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa. It indicates the total amount of expenses an employer (organisation) spends on an employee during one year.

Who is eligible for PF?

EPF eligibility criteria If you are a salaried employee with a Basic + Dearness Allowance less than Rs. 15,000 per month, it is mandatory for you to be opened an EPF account by your employer.

What is monthly CTC salary?

CTC. CTC or Cost to Company is the total amount that a company spends (directly or indirectly) on an employee. It refers to the total salary package of the employee. CTC is inclusive of monthly components such as basic pay, various allowances, reimbursements, etc.

How is salary break up calculated in CTC?

CTC = Earnings + Deductions Here, Earnings = Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Medical Allowance + Special Allowance. Given below is a simple example of a salary slip showing all the basic breakups under two heads, earnings and deductions.

What is your current CTC?

Current CTC is the money invested on you by your present company (where you are working right now) in terms pay and allowances as mentioned above. Expected CTC is cost to company on you, what you are expecting while either joining a new company or what you are demanding for pay increment to your present company.

Does CTC include PF?

Cost to Company (CTC) is the salary package of an employee. … Thus, CTC mostly includes salary, leave travel allowance, bonus, house rent allowance, employer contribution of PF and medical reimbursements.

How is monthly CTC calculated?

CTC = Direct Benefits + Indirect Benefits + Savings ContributionsDirect Benefits refer to the amount paid to the employee monthly by the employer which forms part of his/her take-home or net salary and is subject to government taxes.Indirect Benefits refer to the benefits that employees enjoy without paying for them.More items…•Nov 27, 2017

What is current CTC in resume?

Hi, what is CTC? Someone asked me, so it’s Cost to Company which means your current package in the organization you are currently employed and ECTC an Expected Cost to Company for your future firm. … Hence, one should not write expected CTC in the resume.

How is PT salary calculated?

Which states impose professional tax and what are the tax slabs?StateIncome per MonthTax Rate/Tax Amount (per month)MaharashtraUp to Rs. 7,500Nil (for male)Up to Rs. 10,000Nil (for female)From Rs. 7,500 to Rs. 10,000Rs. 175 (for male)Rs. 10,000 onwardsRs. 200 for 11 months + Rs. 300 for 12th month28 more rows

How is monthly salary calculated?

In this method, the pay per day is calculated as the total salary for the month divided by the total number of calendar days minus Sundays. … If the employee’s total monthly salary is Rs 26,000, and if the employee joins on September 21, he or she will be paid Rs 10,000 for the 10 days in September.

What does monthly CTC mean?

basic salary plus allowances and company contributionCTC: Refers to the total cost that an organisation is spending on an employee, including your monthly CTC (basic salary plus allowances and company contribution) and a guaranteed 13th cheque.

What is CTC and gross salary?

The employees’ CTC is the gross amount, while the amount of salary one gets to take home is the net salary. In simpler words, gross salary is the monthly or yearly salary before any deductions are made from it.

What is CTC and in-hand salary?

In-hand Salary = Gross Salary – Income Tax -Professional Tax It is important to know that the CTC offered will be different from what you actually receive in-hand at the end of the month. The difference between CTC and in-hand salary are the various deductions that occur at the time of payout.

What is CTC in school?

Definition. CTC. Counseling and Testing Center (various schools)

What is CV CTC?

CTC full form is Cost To Company. It means total salary package & benefits received by employee in a year including free meals, cabs, interest free loans.