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CTC and compensation

Setting someone's pay is meant to be one number. You enter their CTC — the total yearly cost of employing them — and Webelio splits it into every component for you.

You set compensation when you add an employee, and you can view or change it later on the employee profile under the Compensation tab.

What CTC means​

CTC (Cost to Company) is everything the company spends on an employee in a year. It's more than take-home pay — it also includes the employer's Provident Fund contribution and the gratuity the company sets aside. Those employer costs sit inside CTC but never reach the employee's bank account.

CTC  =  Gross salary (what's paid to the employee, before deductions)
      + Employer PF contribution
      + Gratuity set aside

Enter CTC, get the full breakdown​

When you type in a CTC, Webelio works backwards and fills in the components automatically:

  1. Basic is set as a percentage of CTC (50% by default).
  2. HRA is set as a percentage of Basic.
  3. Employer costs (PF, gratuity) are set aside from CTC.
  4. Special Allowance — the balancing component — takes up whatever's left so the totals match exactly.

You see a live breakdown: each component's monthly and yearly amount, the employer contributions, and the gross. Change a percentage or switch off a statutory item, and every figure updates instantly.

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You never have to work out components by hand. Enter the CTC, pick a template, and Webelio does the split — including a "balancing" component that absorbs the rounding so the numbers always add up.

Assigning a template​

Pick a salary template (structure) when setting compensation and Webelio applies its components at this employee's CTC. Most orgs have a "Standard" template for regular staff and simpler ones for interns or contractors. Manage templates under salary structure.

Raises — use Revise​

Once set, an employee's CTC is fixed on their profile — you don't just overwrite it. To give a raise, use Revise:

  1. On the employee's profile, choose Revise (their compensation is edited through this flow, not by editing CTC directly).
  2. Enter the new CTC and the effective date.
  3. Webelio recalculates every component at the new CTC, keeping the same template unless you change it.

Backdated raises and arrears​

If the effective date is in the past — say you finalize an April raise in July — Webelio owes the employee the difference for those in-between months. This is arrears.

  • Webelio works out the month-by-month difference for each component.
  • The arrears are added to the next payroll run as their own payslip lines, separate from the current salary.
  • Statutory deductions are recalculated on the higher figures.
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A backdated raise increases past-month pay and the tax and PF on it. Set the effective date carefully — it decides how many months of arrears Webelio pays out.

What's next​