Salary breakup is defined as the detailed structure of the various components in an employee’s salary. Generally, the salary of an employee consists of different components, such as CTC, basic salary, allowances, insurances, and so on.
CTC is the abbreviation of Cost of Company. It is the entire amount spent on an employee by a corporation. It also involves a wide bracket of the pay package that an employee is offered. Here are some components of CTC that helps in salary break-up.
The salary breakup varies from employee to employee. Some important factors that determines an employee’s salary breakup are:
Let’s consider an employee is having an annual CTC of 4,20,000. For this salary monthly breakup would look like:
Basic- 50% of CTC- 17500
HRA- 50% of Basic- 8750
PF employer contribution- 1800
Leave travel allowance- 3000 as fixed amount
Special allowance- 3950 (balancing figure)
Gross Salary (Basic+ Allowances)- 35000
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