Da Form 8265: Fill & Download for Free

In newly released Advt. No. 6/2019 (R&P) of ONGC for recruitment of Graduate Trainees (GTs) at E1 Level through GATE 2020, the CTC offered is approx. INR 20.06 Lacs at E1 Level. I’ll explain in this answer how ONGC arrived at this figure of INR 20.06 Lacs, which I think is a big question of every applicant.(1)Many people think that as the CTC is INR 20.06 Lacs so I should be getting 20.06/12 = INR 1.67 Lacs each month as my salary (I’ve seen even newly joined GTs complaining this). It’s definitely not so as there is a big difference between CTC and In-Hand Salary.Cost to Company or CTC as it is commonly called is the cost a company incurs when hiring an employee. CTC is basically a company’s spending on hiring and sustaining the services of an employee. CTC is considered a variable pay as it varies based on various factors and thus when the CTC varies, the In-Hand salary of the employee varies.CTC = Direct Benefits + Indirect Benefits + Saving ContributionsIn-Hand Salary = Direct Benefits - Employee PF - Other deductions if any – Income Tax(2)Fixed Salary components in ONGC of GTs at E1 Level (Monthly)1) Basic Pay – INR 600002) Cafeteria Perquisite/ Allowance – INR 21000 (35% of Basic)3) Variable DA – INR 8880 (currently 14.8% of Basic, revised quarterly)4) Uniform, Stitching, Washing Expenses and Canteen Subsidy – INR 33955 (For FY 20, paid Quarterly, comes to INR 11318 Monthly)(3)Variable Salary components in ONGC of GTs at E1 Level (Monthly)1) HOUSE RENT ALLOWANCE (HRA)Depends upon the city of the house if taken rented house/ leased accommodation, city of hometown if taken Bachelor Accommodation, city from where doing on-off in case of on-off duty pattern e.g. 14 days, 2 days, etc. and No HRA in case of Family Accommodation.Cities are divided into X, Y and Z category by Govt. of India and their HRA rate is 24 %, 16 % or 8% of Basic Pay respectively equivalent to INR 14400, INR 9600, INR 4800.2) CONVEYANCE MAINTENANCE REIMBURSEMENT EXPENDITURE (CMRE)You need to have a car on your name with a valid RC. In case of office duty, car needs to be kept at the place of posting and in case of 14 days on-off duty, car can be kept at the place of doing on-off. Currently INR 9695.3) OFFSHORE HARD DUTY ALLOWANCE (OHDA)For all posted at offshore locations i.e. Mumbai or Kakinada. Currently 12 % of Basic Pay i.e. INR 7200. (Paid if posted in Offshore Locations at these places, not if posted in Office)4) NORTH EAST ALLOWANCEFor all posted in North-Eastern region i.e. Assam or Tripura. Currently 10 % of Basic Pay i.e. INR 6000.5) PERFORMANCE RELATED PAY (PRP)PRP or commonly called annual Bonus is paid according to DPE guidelines in any PSU. It depends on a lot of factors e.g. MOU rating of PSU, Individual Performance or PAR marks, etc. For FY 19 (2018–19), Max PRP that a GT will get is INR 230000 whereas Avg. PRP will be INR 185000 as ONGC got Very Good (0.8) MOU Rating by DPE instead of Excellent (1.0) MOU Rating otherwise Max PRP would have been INR 288000 and Avg. PRP INR 230000.(4)Deduction/ Savings contribution components in ONGC of GTs at E1 Level (Monthly)1) Self-Contributory Post Retirement and Death in Service Superannuation Benefit Scheme (PRBS) - Like Self Contributory Pension Scheme similar to NPS for Central Govt. EmployeesThe scheme is designed to meet the Post Retirement needs of the employees and needs of the family in case of death and of an employee in service. GTs contribute INR 13384 (3% of BP+DA+INR 11318 as additional contribution for FY 20) and ONGC contributes INR 10332 (15% of BP+DA) every month and this keeps on changing every quarter.2) Employees Contributory Provident Fund (CPF) - Like Self Contributory Provident Fund similar to PF for Central Govt. EmployeesCPF regulation shall apply uniformly to all the units and other establishments and institutions under the control of the Corporation w.e.f. 30-06-1961 under the Employees Provident Fund Act, 1952. CPF can be withdrawn for housing, illness, marriage, etc. purpose. GTs contribute INR 8265 (12% of BP+DA) and ONGC contributes INR 8265 (12% of BP+DA) i.e. matching contribution.3) Composite Social Security Scheme (CSSS)To provide, on Death/ permanent total disability, financial support to the beneficiaries of INR 60 Lacs in the event of death/PTD of a member while in service. Survival Benefit is return of own contribution along with interest @ 6 % compounded annually thereon to the member. GTs contribute INR 1550 every month and ONGC gives matching contribution.4) Income Tax(5)CTC Calculation( BP + Cafeteria + Variable DA ) x 12 = INR 10,78,560( Uniform Allowance ) x 4 = INR 1,35,820( CMRE + HRA (Avg = INR 9600) ) x 12 = INR 2,31,540( PRBS + CPF + CSSS ) x 12 = INR 2,41,764PRP = INR 288000 (Majority company add max possible bonus in CTC)Miscellaneous = INR 30,000Total = INR 20,05,684 = INR 20.06 Lacs approx.(6)Maximum possible yearly In-Hand salary for GTs at E-1 Level in ONGCA person posted in Offshore in 14 days On-Off duty, doing on-off from an X category city and claiming all other allowances e.g. CMRE, etc. get the maximum salary in ONGC.( BP + Cafeteria + Variable DA ) x 12 = INR 10,78,560( Uniform Allowance ) x 4 = INR 1,35,820( CMRE + HRA (INR 14400) ) x 12 = INR 2,89,140PRP = INR 288000 (Assuming max possible PRP)( Offshore Hard Duty = INR 7200 ) x 12 = INR 86400Total Gross Salary = INR 18.78 LacsTotal Deductions = ( INR 39000 (Avg. Monthly) ) x 12 = INR 4.68 LacsMaximum Possible Yearly In-Hand Cash Component = INR 14 Lacs (Approx.)(This is close to the CTC offered by a lot of big companies and way more than a lot other.)(7)This was all about the salary part, for other facilities provided by ONGC to GTs, kindly refer to my answer here.Mudit Vajpayee's answer to What are the facilities for GATE rankers that have a job in ONGC?(8)Words of AdviceI’ve just tried to clarify the details about the CTC of ONGC for GTs at E1 level. I’d advise you all to never equate money with happiness. There can be people in ONGC with CTC of INR 35 Lacs + and dissatisfied and at the same time, canteen workers with CTC (they don’t even have one) say 10 % of them but happy, full of life and enjoying their work."Happiness, not gold or prestige, is the ultimate currency.” —Tal Ben-ShaharReferences[1] Difference between Take-Home Salary, Net Salary, Gross Salary and CTCI hope I was able to explain my answer well.DISCLAIMER: The views and opinions expressed in this answer are those of the author and do not necessarily reflect the official policy or position of ONGC.Thank youMudit Vajpayee