Unlike Freshers, Professionals have another set of queries, such as- Salary and CTC, EPF, ESI, IT, PT, Job satisfaction, career pathway, etc. They are often eager to know present trend of technological developments and expected role of Engineers. It is very important to keep oneself up to date with correct information for smooth growth in his/her career.

Salary:

A salary is a form of payment from an employer to an employee, normally on a monthly basis as per the contract or declaration made at the time of employment.

Salary= Basic Pay + Allowances; Allowances= HRA + CA + DA; HRA= House Rent Allowance, CA= Conveyance Allowance, DA= Dearness Allowance.

Cost-To-Company (CTC):

It is a new terminology being used in modern days

CTC= Salary+ Employer’s Contributions (EC);    EC= Contribution towards EPF account + other contributions (if any)

Employees’ Provident Fund (EPF):

It is a savings of an employee deposited in an account in Employees’ Provident Fund Organization (EPFO)

EPF= Employees’ contribution (12 % of (Basic Pay + DA)) + Employer’s contribution (12% of (Basic Pay + DA))

Employees’ State Insurance (ESI):

It is insurance for the sake of social security of workers in India, under the Ministry of Labor and Employment, established by The ESI Act, 1948. The services are provided through the ESI Hospitals and Dispensaries.

• Eligibility: Employees, in general category, with monthly salary not more than Rs.21,000 and those in Physically Challenged category, with monthly salary not more than Rs.25,000 are eligible for ESI. Employees earning daily wage less than Rs.176 are exempted from ESI contribution.
• Amount of ESI Contribution: The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage up to Rs.137/- are exempted from payment of contribution.

Income Tax (IT):

It is Tax imposed by the government in a country on an individual’s earnings in a financial year if the amount of annual income is above a certain limit.

• Eligibility: It varies country to country. In India, a person having total annual income more than Two Lakhs Fifty Thousand (Rs.2,50,000.00) is eligible for submission of IT.
• Taxable Income: Tax is not deducted from the entire income; rather it is calculated on certain part of the income. In case of salary, BP and taxable allowances only come under tax calculations.
• Tax calculations: 
  • For annual income up to Rs. 5,00,000.00; IT= 5% of taxable income
  • For annual income above Rs. 5,00,000.00 and up to Rs. 10,00,000.00; IT= 20% of taxable income
  • For annual income above Rs. 10,00,000.00; IT= 30% of taxable income.
• IT Return (ITR): If one’s actual payable tax is less than the paid amount, due to some other liabilities, he/she can get back the excess amount by filing proper ITR.

Profession Tax (PT):

Profession Tax is a tax levied on a person engaged in any profession, trade, calling and employment in a state. It is enacted by the act passed in local legislative body.

• Calculation: The amount of PT varies state to state. However, it is not calculated as a percentage of salary/income; rather it is a varying amount for different slabs of