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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.

Fixed Basic or HRA​

Choose Basic and HRA's calculation types in the salary template. Basic can use a percentage of CTC or a fixed monthly amount; HRA can use a percentage of Basic or a fixed monthly amount. For fixed heads, enter the amount separately for each employee. The template has no shared fixed amount.

The employee's Share column shows a percentage input or a monthly-amount input based on the template. You can customize that value without changing the calculation type. Special Allowance automatically balances the remaining earnings after employer costs. Entries that exceed CTC must be adjusted before saving.

Apply to employees replaces custom percentages with the template's percentages but keeps each employee's monthly amounts for fixed Basic/HRA. Changing a head from percentage to fixed keeps its current monthly amount; changing from fixed to percentage uses the template's percentage. Saving a template alone does not change employee compensation.

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 and applicable ESI contributions, plus 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
      + Employer ESI contribution (where applicable)
      + 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 uses the template percentage of CTC (50% by default), or the employee’s fixed amount.
  2. HRA uses the template percentage of Basic, or the employee’s fixed amount.
  3. Employer costs (PF, applicable ESI and gratuity) are set aside from CTC.
  4. Special Allowance — the balancing component — takes up the remaining CTC after employer costs, allowing for contribution rounding.

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, using the same template and keeping fixed Basic/HRA amounts unless you edit them.

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​