What is CTC in salary with example?

It is calculated by adding salary to the cost of all additional benefits an employee receives during the service period. If an employee’s salary is ₹500,000 and the company pays an additional ₹50,000 for their health insurance, the CTC is ₹550,000. Employees may not directly receive the CTC amount.

How is CTC amount calculated?

The Community Tax Certificate (CTC) popularly known as residence certificate, is usually used for documentation purposes. … The basic community tax fee is five pesos. If a person is working, an additional one peso for every 1,000 pesos of his gross annual income is added.

What is the basic salary for CTC?

Usually, the basic salary is 40% to 60% of CTC (Cost to Company). The statutory components: bonus, PF, gratuity and other benefits are determined based on the basic salary.

What percentage of salary is CTC?

Grade pay-The government sector usually pays grade pay to its employees. This payment is based on the seniority of the employee. Basic Pay-This is the main component of the CTC structure. It is a fixed component of the salary and usually comprises 40% to 50% of the total CTC.

What do you mean by CTC salary 18000?

CTC means Cost To Company. The total cost that a company would incur, on an employee, in a year. Per month salary and other benefits that the company pays an employee, are actually cost to the company.

What is the meaning of 15000 CTC?

I quickly calculated on the fingertips, it means 15,000/month.

Is CTC monthly or yearly?

Cost to Company (CTC) is the yearly expenditure that a company spends on an employee. Each employee spend depends on their salary and variable.

Is PF included in CTC?

CTC involves a number of other elements and is cumulative of House Rent Allowance (HRA), Provident Fund (PF), and Medical Insurance among other allowances which are added to the basic salary.

Why in hand salary is less than CTC?

The difference between CTC and in-hand salary are the various deductions that occur at the time of payout. The take-home salary can be increased by proper tax planning and avoiding any income tax deductions. … This will result in reducing the total deductions from the gross salary, thereby increasing the in-hand salary.

How can I write current CTC in lakh?

Lets say your CTC looks something like this: Just add Basic salary, Personal Allowance, HRA and divide the sum by 12 months, which comes around 36,250 rupees per month. And if you subtract the PF (employee contribution) ie 1,200 rupees month, the final value comes around 35,050 rupees.

How is HRA calculated?

HRA is mainly determined by your salary. … Actual HRA component of salary. 50% of basic salary if he resides in Delhi, Chennai, Kolkata, or Mumbai; 40% if his residence is in any other city. Actual rent paid less 10% of basic salary.

How is HRA calculated from CTC?

Actual HRA offered by the employer = Rs. 15,000; or. 50% of the basic salary = 50% of Rs. 23,000 = Rs.
…
How is House Rent Allowance (HRA) Calculated?
Salary Component Amount (Rs.)
Basic 23,000
HRA 15,000
Conveyance 3,000
Medical Allowance 1,250
•
Sep 2, 2021

How do you ask Expected CTC?

How to answer your expected CTC in an interview
  1. Understand the components of CTC. …
  2. Perform research on salary trends. …
  3. Mention a salary range. …
  4. Be ready with a rational explanation. …
  5. Deflect the question if necessary. …
  6. Mention expected CTC during formal rounds. …
  7. Be willing to negotiate. …
  8. Be realistic and truthful about your answer.

What is TC less LPA?

Lakhs Per Annum (LPA) is a unit of Cost to Company (CTC) in India. 1 Lakh is Rs. 1,00,000. We have found 13 more results for LPA.

How much will I get in hand if my CTC 4 LPA?

4 Lakhs per annum, which makes it somewhere round 40,000 per month. However, when you receive the salary at the end of the month, you receive only Rs. 34,000 in your back account.

What is current CTC for fresher?

CTC or Cost to Company is the total salary package and benefits of an employee per year. It is basically the amount that a company or employer is willing to spend both directly and indirectly on you as it’s employee. CTC is inclusive of monthly components such as basic pay, various allowances, reimbursements, etc.

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.

Is it OK to mention CTC in resume?

One should not write expected CTC in resume. Neither the figure nor the percent hike you are looking for. Generally you send same resume to many job applications or upload on job portal and since CTC depends on organizations, job profile, skills set, experience etc.

How do you calculate CTC in Excel?

How to CTC Calculation sheet?
  1. Click on Reset button.
  2. Select State and Employee Skill.
  3. Type Annual CTC Amount.
  4. CTC Salary Breakup will be calculate Automatic.

How do you calculate cost to company?

Another common question asked by employers is “how do I determine what an employee’s total cost of employment is?” The answer is very simple. Add the employee’s cash salary (basic pay plus allowances) to the company’s contributions to the employee’s benefit funds.

What would be take home salary if CTC is 7 lakhs per annum?

Summary of Salary Package in below table
Particulars Amount (INR)
Tax liability including cess (New tax regime) INR 53,976/-
HRA Tax Exemption INR 51,000/-
In hand salary (Old tax regime) INR 7,16,992/- per year (INR 59,749/- per month)
In hand salary (New tax regime) INR 7,23,024/- per year (INR 60,252/- per month)
•
May 26, 2021

What is CTC structure?

CTC or Cost to Company is the total amount that a company spends (directly or indirectly) on an employee. … CTC is inclusive of monthly components such as basic pay, various allowances, reimbursements, etc. and annual components such as gratuity, annual variable pay, annual bonus, etc.