A typical CTC breakdown in India includes: Gross Salary (Basic + HRA + Allowances + Special Allowance), Employer PF Contribution (12% of PF wages up to Rs 1,800 per month), Employer ESI Contribution (3.25% of ESI gross for eligible employees), and Gratuity Accrual (4.81% of Basic per year). Zoho Payroll uses CTC as the input and distributes amounts across components based on the configured salary structure.
These three are distinct values. CTC includes employer-side costs. Gross Salary excludes employer contributions and equals the sum of all employee-side earnings. Net Salary is Gross minus all employee-side deductions (PF, PT, TDS). Zoho Payroll displays all three on the payslip and in payroll reports.
When setting up a salary structure in Zoho Payroll, you can enter the annual CTC and configure each component as a percentage of CTC or a fixed amount. The system automatically distributes the CTC across components and adjusts Special Allowance to balance the structure. This simplifies salary revisions: changing the CTC figure auto-recalculates all components.
CTC (Cost to Company) is the total annual expenditure a company incurs for an employee, including gross salary, employer PF and ESI contributions, and gratuity accrual. In Zoho Payroll, CTC is the input value used to configure salary structures and is not the same as the employee’s take-home pay.
CTC includes employer costs such as PF and ESI contributions that the employee never receives directly. Gross Salary is the sum of employee-side earnings. Net Salary is gross minus employee deductions (PF, PT, TDS). CTC is always higher than gross salary, which is always higher than net salary.
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