Need A Salary Breakup For 21000 In Hand And CTC 2.7 ALL DISCUSSIONS (LIST) (2024)

FAQs

What is CTC breakup? ›

An employee receives a salary from the company or organisation. Salary breakup is the analysis of gross salary or cost to company (CTC) to get each component of salary. The in-hand salary of an employee is usually different from the gross salary.

CTC in colloquial terms is the cost an employer bears to hire and sustain its employees. Formula: CTC = Gross Salary + Benefits. If an employee's salary is ₹40,000 and the company pays an additional ₹5,000 for their health insurance, the CTC is ₹45,000. Employees may not directly receive the CTC amount as cash.

You don't need to get too specific. “A good way to approach the salary question is to ask about the general salary range for the position and explain that you are simply trying to gauge if the opportunity is a good fit for your experience and expectations,” Samuel says.

Mention a salary range

For example, if your research shows that the average salary for your role is ₹6,00,000 per year, you can mention higher amounts as expected CTC. Alternatively, you can also add about 15% to 20% to your current CTC and mention a range.

Usually, the basic salary is 40% to 50% of CTC (Cost to Company). Statutory components such as bonus, PF, gratuity, and other benefits are determined on the basis of the basic salary.

Calculating salary increases

In cell A4, enter (=A2 + A3), which will result in your post-raise salary. If your raise is a percentage of your salary, you'll need to use an extra line. In cell A3, enter the percentage of your raise in decimal form -- so a 3% raise becomes 0.03. Then, in cell A4, enter (=A2*A3).

CTC (Cost to Company) refers to the total amount of money a company will spend on you as compensation per year. But calculating your in-hand salary from your CTC can get tricky as it could have many elements. This article will help you decipher the meaning of CTC and learn more about its components.

Also known as a “wage structure” or “salary structure,” a compensation structure is the strategy you use to determine how each employee in your company is paid. It considers information like the length of employment, industry minimums and maximums, and merit.

What is the meaning of conveyance allowance? ›

Conveyance allowance, also known as transport allowance, is a kind of allowance offered by employers to their employees to compensate for their travel expense to and from their residence and workplace.

Basic salary is the salary paid to an employee before any additions or reductions to the overall compensation, such as investments, dues, overtime pay or a bonus. Base salary is a fixed amount of money paid to an employee by an employer in exchange for the man hours put to work.