We have below components in our salary :
Basic+ DA
HRA
Education Allowance
Medical Allowance
Conveyance Allowance
Deductions :
PF
PT
ESIC
I just want to know if we could have a reverse formula (calculating gross figure if I have a CTC figure)
Kindly let me know
From India
1Basic+ DA
HRA
Education Allowance
Medical Allowance
Conveyance Allowance
Deductions :
PF
PT
ESIC
I just want to know if we could have a reverse formula (calculating gross figure if I have a CTC figure)
Kindly let me know
From India
Dear Bhavna, This forum has given numerous examples on CTC and related queries,please go through. And what exactly you mean by reverse formula here? All these components are part of CTC only.
From India, Hyderabad
From India, Hyderabad
Dear Bhavna,
This forum is primarily to provide guidance and suggestion to issues related to HR Functions. What you have asked is related to a mathematical equation. Though CTC calculation is also part of HR, but making reverse calculation is something different.
Now come to your points, the reverse calculation can be done, only if we have stepwise CTC Structure depend upon some % linked to previous component.
But you can easily calculate GROSS if you have all CTC components (basic pay structure, employer’s contributions, annual emoluments etc). Reverse calculation not required at all.
Other than GRISS, CTC have some extra components:-
1 Components which generally not paid on monthly basis (Bonus, Gratuity, Leaves etc).
2 Employer contributions towards social security and other legal and statutory compliances (PF, ESI, PT etc.).
3 Any other allowance which company pay annually, half yearly (LTA, Medical / Phone / Fuel Allowances etc).
Pls share specific figures of your CTC or Excel sheet, learned member will help you to calculate the GROSS.
From India, Delhi
This forum is primarily to provide guidance and suggestion to issues related to HR Functions. What you have asked is related to a mathematical equation. Though CTC calculation is also part of HR, but making reverse calculation is something different.
Now come to your points, the reverse calculation can be done, only if we have stepwise CTC Structure depend upon some % linked to previous component.
But you can easily calculate GROSS if you have all CTC components (basic pay structure, employer’s contributions, annual emoluments etc). Reverse calculation not required at all.
Other than GRISS, CTC have some extra components:-
1 Components which generally not paid on monthly basis (Bonus, Gratuity, Leaves etc).
2 Employer contributions towards social security and other legal and statutory compliances (PF, ESI, PT etc.).
3 Any other allowance which company pay annually, half yearly (LTA, Medical / Phone / Fuel Allowances etc).
Pls share specific figures of your CTC or Excel sheet, learned member will help you to calculate the GROSS.
From India, Delhi
Dear Bhavana,
It's more like a mathematical calculation we have to assume certain things and calculate the Gross
I hope this will help you
If CTC is - 23000
Assume Basic- 11500(50% of CTC)
PF(Employer side)- 12%of Basic=1380
(CTC)2300-(PF)1380=21620
ESIC Employer side= 4.75% of 21620=1027
21620-1027=20593(Assume it as gross)
If 20593 is Gross then again process for Basic
as Basic should be 50% of Gross so....
Basic-10000
PF(Employer)-1200
process to get Gross:-
23000(CTC)-1200=21800
4.75% of 21800= 1035
21800-1035=20765
repeat the process with each result
21800-{4.75% of 20765(986)}
21800-{4.75% of 20814(988)}
21800-{4.75% of 20812(988)}
If two consecutive results come same that amount will be the original ESIC(Employer) amount,in this case it is 988
CTC-PF(Employer)-ESIC(Employer)= Gross
23000-1200-988=20812
20812 will be final Gross
After deducting PF(Employee side)ESIC(Employee side,1.75%)and PT from the Gross result will be Net amount or Take home amount.
From India
It's more like a mathematical calculation we have to assume certain things and calculate the Gross
I hope this will help you
If CTC is - 23000
Assume Basic- 11500(50% of CTC)
PF(Employer side)- 12%of Basic=1380
(CTC)2300-(PF)1380=21620
ESIC Employer side= 4.75% of 21620=1027
21620-1027=20593(Assume it as gross)
If 20593 is Gross then again process for Basic
as Basic should be 50% of Gross so....
Basic-10000
PF(Employer)-1200
process to get Gross:-
23000(CTC)-1200=21800
4.75% of 21800= 1035
21800-1035=20765
repeat the process with each result
21800-{4.75% of 20765(986)}
21800-{4.75% of 20814(988)}
21800-{4.75% of 20812(988)}
If two consecutive results come same that amount will be the original ESIC(Employer) amount,in this case it is 988
CTC-PF(Employer)-ESIC(Employer)= Gross
23000-1200-988=20812
20812 will be final Gross
After deducting PF(Employee side)ESIC(Employee side,1.75%)and PT from the Gross result will be Net amount or Take home amount.
From India
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