Common questions

How is Inhand salary calculated from CTC?

by Author

How is Inhand salary calculated from CTC?

Let’s take an example for a better understanding of salary structure to calculate the in hand salary from CTC

  1. Basic Salary = 50\% * 9 lakh = INR 4.5 Lakh.
  2. HRA = 30\% * 4.5 lakh = INR 1.35 Lakh.
  3. Employer’s contribution to your PF(#) = 12\% * 4.5 lakh = INR 0.54 Lakh.
  4. Food Coupons (Like Sodexo, etc.) =

Is CTC same as in hand salary?

It is to understand that in hand income is a part of CTC and the pay you receive consists of package deal which includes multiple variants into it along with the In hand Salary which one receives after deductions.

How do you calculate in-hand salary?

In-Hand Salary = Monthly Gross Income – Income Tax – Employee PF – Other Deductions if any.

READ:   How sustainable is the egg industry?

How is CTC divided?

CTC = Earnings + Deductions Here, Earnings = Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Medical Allowance + Special Allowance.

How do you calculate an employee’s salary?

How to Calculate your Take-Home Salary?

  1. In order to calculate your Take-Home Salary or Net Salary, follow these steps:
  2. Gross Salary= Basic Salary + HRA + Other Allowances.
  3. Alternatively,
  4. Gross Salary= CTC – (EPF + Gratuity)
  5. Taxable Income = Income (Gross Salary + other income) – Deductions.

What is the formula for salary calculation?

Here the basic salary will be calculated as per follows Basic Salary + Dearness Allowance + HRA Allowance + conveyance allowance + entertainment allowance + medical insurance here the gross salary 594,000. The deduction will be Income tax and provident fund under which the net salary comes around 497,160.

How is hand salary calculator?

What is the formula for 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. of Years of Service.

READ:   What qualifications do I need to be a dog handler?

What does 4 lakh CTC mean?

Take for example, the company offered you a CTC of Rs. 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.

How is CTC calculated on payslip?

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.