How do you calculate CTC?

CTC is calculated by adding salary and additional benefits that an employee receives such as EPF, gratuity, house allowance, food coupons, medical insurance, travel expense and so on. CTC in colloquial terms is the cost an employer bears to hire and sustain its employees. Formula: CTC = Gross Salary + Benefits .

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How is salary breakup calculated?

In a nutshell, Net Salary = Basic Salary + Allowances – Income Tax/ TDS – Employer’s Provident Fund – Professional Tax . Add the allowances to the basic salary and you arrive at the gross salary. This amount is calculated before the application of taxes and other deductions.

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