Hi,
I have been working on some salary revisions in a company.
Their existing CTC structure did not account for PF, I have created the structure such that as per the company policy the annual CTC has the following componentsŞ
Basic, HRA and Conveyance + Fixed benefits equals 75% of total annual ctc this also includes the PF contributions of both employee and employer
Variable component 25%
I am now facing a challenge in revising salaries. When I hike the TCTC by a certain percentage with benefits remaining the same, the change in PF contribution due to dependency on Basic component is changing the annual CTC figure.Since I have approval on percentage hike in annual CTC, this change in CTC due to dependency on PF is changing the whole equation.
Please help me understand how this can be calculated or if I should just define salary bands and associate PF contributions?
Any inputs will be helpful, thanks!
From India, New Delhi
1I have been working on some salary revisions in a company.
Their existing CTC structure did not account for PF, I have created the structure such that as per the company policy the annual CTC has the following componentsŞ
Basic, HRA and Conveyance + Fixed benefits equals 75% of total annual ctc this also includes the PF contributions of both employee and employer
Variable component 25%
I am now facing a challenge in revising salaries. When I hike the TCTC by a certain percentage with benefits remaining the same, the change in PF contribution due to dependency on Basic component is changing the annual CTC figure.Since I have approval on percentage hike in annual CTC, this change in CTC due to dependency on PF is changing the whole equation.
Please help me understand how this can be calculated or if I should just define salary bands and associate PF contributions?
Any inputs will be helpful, thanks!
From India, New Delhi
The whole CTC Structure would change if you add or subtract any component. Which should not be a problem I think.
From India, Mumbai
From India, Mumbai
I have attached the Excel sheet to clarify my dilemma.
Now the problem is seeking a hike on the "current annual CTC" let's say 10%
This leads to the "new annual CTC" however once I start calculating the CTC components (benefits : since PF contribution has changed" the "new annual CTC" no longer reflects a 10% hike.
Request you to look at the sheet and let me know if you can think of a solution to this problem.
How is salary calculated keeping PF contributions in mind and deciding on annual CTC figures?
From India, New Delhi
Now the problem is seeking a hike on the "current annual CTC" let's say 10%
This leads to the "new annual CTC" however once I start calculating the CTC components (benefits : since PF contribution has changed" the "new annual CTC" no longer reflects a 10% hike.
Request you to look at the sheet and let me know if you can think of a solution to this problem.
How is salary calculated keeping PF contributions in mind and deciding on annual CTC figures?
From India, New Delhi
Oops forgot the attachment above.
In the attached sheet, I am seeking a hike approval on the total annual current CTC..this should give me the new annual CTC.
Based on this new annual CTC I start computing other components (25% variable, benefits are fixed except PF and the gross amount)
However since the PF depends on Basic , and the basic is different from current basic..the annual CTC amount changes, it is no longer the amount I got after putting 10% hike on the existing annual CTC.
Feel free to change the percentage hike!
Thanks!
PFA here
From India, New Delhi
In the attached sheet, I am seeking a hike approval on the total annual current CTC..this should give me the new annual CTC.
Based on this new annual CTC I start computing other components (25% variable, benefits are fixed except PF and the gross amount)
However since the PF depends on Basic , and the basic is different from current basic..the annual CTC amount changes, it is no longer the amount I got after putting 10% hike on the existing annual CTC.
Feel free to change the percentage hike!
Thanks!
PFA here
From India, New Delhi
Hi,
they is error in whiled attaching a copy.
pass from 7/ 8 year i have been working on this salary's part. As per my knowledge
I had created the structure, with company policy on monthly CTC has the follows.
pls check the following details given below & copy same to an excel sheet.
SNo. Name Service in months CTC incre Total Basic Hra 50% Cony. 11% Lta(basic/12) Med(basic/12) Bonus Other Allow. Gross sal PF contri, CTC Incre % Emply & employer both pf Contrub. P.Tax as per statuory Net Salary
1 XXXXXX 67 75000 10000 85000 34000 17000 3740 2833 2833 5667 14847 80920 4080 85000 13.3 8160 200 72560
2 YYYYYY 48 55000 7000 62000 24800 12400 2728 2067 2067 4133 10829 59024 2976 62000 12.7 5952 200 52872
it maybe useful & easy with simply calc.
Regards,
Chandra Sekhar.
From India, Hyderabad
they is error in whiled attaching a copy.
pass from 7/ 8 year i have been working on this salary's part. As per my knowledge
I had created the structure, with company policy on monthly CTC has the follows.
pls check the following details given below & copy same to an excel sheet.
SNo. Name Service in months CTC incre Total Basic Hra 50% Cony. 11% Lta(basic/12) Med(basic/12) Bonus Other Allow. Gross sal PF contri, CTC Incre % Emply & employer both pf Contrub. P.Tax as per statuory Net Salary
1 XXXXXX 67 75000 10000 85000 34000 17000 3740 2833 2833 5667 14847 80920 4080 85000 13.3 8160 200 72560
2 YYYYYY 48 55000 7000 62000 24800 12400 2728 2067 2067 4133 10829 59024 2976 62000 12.7 5952 200 52872
it maybe useful & easy with simply calc.
Regards,
Chandra Sekhar.
From India, Hyderabad
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx