It includes benefits, such as statutory bonuses,allowances and administrative expenditure other than the employee’s gross salary . The total CTC need not be the actual salary in hand at the end of the month. CTC breakup includes various components like: Fixed salary.
Read moreHow is salary break up calculated in CTC?
It is calculated by adding salary to the cost of all additional benefits an employee received during service period . If an employee ‘s salary is rupees 500000 and company pays additional 50,000 for their health insurance , the CTC is rupees 550,000. Employee may not directly received the CTC amount.
Read moreHow is basic salary calculated from CTC in India?
CTC = Earnings + Deductions Here, Earnings = Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Medical Allowance + Special Allowance.
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