It is a minimum pay given by the employer as per labor laws. Basic pay depends on qualification, work experience, designation etc. It is also known as Grade pay.
It is paid by an employer to meet official or personal expenses.
if an employee earns profits than maybe distribute bonus.
HRA is generally 50% or 40% of basic.
In India, PF amount is 12% of your basic salary and the equal amount is contributed by the employer.
Divide CTC by 14.
If you divide your CTC by 14 you will get your approx net salary.
The company gives some allowance that is totally tax-free:
Subtract above item in your CTC you will get the taxable salary.
Example : CTC - (Medical - PF - HRA(if rented home) - Conveyance)
Gross salary is also known as CTC. It is a sum of all facility and Amount give by the employer.
Gross salary / CTC = Basic + Medical + PF + HRA + Conveyance + Mobile bill + Other Allowance + etc