Salary Breakup - Xls Download [thread 298359]

Hi Shweta Gehlot,

I want to know how to prepare a salary breakup.

Regards,
Shweta Gehlot

Hi Shweta,

Here is the salary breakup for you. I hope it will provide some information about the salary breakdown.

Earnings:
Basic: 50% of the CTC
HRA: 40% of the Basic (For Metros, it is 50%)
Conveyance Allowance: Rs. 750 per month (more than Rs. 750 is taxable)
Medical Allowance: Rs. 1250 per month (more than Rs. 1250 is taxable)
You can consider the remaining as special allowance, project allowance, etc.
ESI: 4.75% of gross salary (Employer contribution)

Deductions:
PF: 12% of the basic (from the employee's side)
ESI: 1.75% of gross salary
Professional tax: According to the slab.

Thanks & Regards,
Vani

Dear Shweta,

I hope this will be useful for salary break. Please let me know the state for preparing salary because Prof Tax slabs are different for other states.

Basic: 50%
HRA: 45% on basic
Conveyance: 800
Medical: 1250
Others:
Gross Pay: Total of Basic, HRA, etc.
ESI: 1.75% on Gross
PF: 12% on Basic
P.Tax: It depends on salary, refer PT Slabs
Net Pay: Gross - ESI - PF - P.Tax

Employer:
PF: 13.61% on Basic
ESIC: 4.75% on Gross

CTC: Gross + Employer contribution

Best Regards,
Mohammed

Dear Shwetha,

I hope this will be helpful to you. Please refer below for the breakup. Prof tax will be different for states. Please follow as per the same.

Basic: 50%
HRA: 45% on
Conveyance: 800
Medical: 1250
Other
G.P = Total of Basic, HRA, etc
ESI: 1.75 on Gross
PF: 12% on Basic
P.Tax: It depends on the salary. Refer to PT slabs.
N.P: Gross - ESI - PF - PT
Employer PF: 13.61 on Basic
ESIC: 4.75 on Gross
CTC: Gross + Employer contribution

Thanks,
-Mohammed

Hi,

I want to know the meaning of salary standard and please provide me with the details.

Regards,
Swapna

Dear Shweta,

First and foremost, you will have to design a Salary Structure for your Company. The CTC breakup will be based on this structure. Some useful suggestions have already been made by some members. You could use these as guidelines. I am attaching herewith a salary structure which could also offer you some idea to create your own Salary Structure.

Best Wishes,
Vasant Nair

Can we break down the salary like this to avoid PF deduction:

Gross: 12000
Basic: 6600/-
Medical: 850/-
HRA: 1250/-
Rest all special allowance: 3300/-

Kindly advise.

Hi,

Salary breakup depends on the company's policy, status, level/categories of employees, nature of business, etc.

Breakup per month salary:

Basic - 40% to 60%
HRA - 20% to 50% on basic
Conveyance - 800 or 20% to 40%
Medical - 1250 or 8.33%
Washing Allowance - 100/- to 250/-
CCA - 200/- to --
Children Education Allowance - 250/- to 1000/-
Special Allowance -
Food/canteen Allowance -
Servant Allowance -

Gross total of Basic, HRA, etc. per month =
Annual Perks/benefits:
ESI - 1.75% on Gross
PF - 12% on Basic
LTA
Bonus
Gratuity
Transport/car -
P.Tax - It depends on salary, Refer PT slabs

CTC = salary per month + annual perks

Regarding PF applicability, subject to already being a member of EPF or not.

Hi,

Here is the salary breakup:

Basic - 40% to 60%. If DA is included, then the basic is 40%.

DA - 20%

HRA - 25%

CA - 15%

Total should be 100% calculated for the salary breakup. It is true, but DA should not be more than 20% and less than 15%. Basic should not be more than 50% and less than 40%. If DA is calculated, then basic + DA should not be more than 60%.

ESI- 1.75% (Employee contribution)
4.75% (Employer contribution)

PF - 12% (from the employee side)

PT - as per slab.

Thank you,
A. Anil Kumar
Executive HR.

Mr. Gopal Chander,

It is a serious issue, and you have to find a solution to avoid any inconvenience in the future.

Thank you.

Yes, this is a serious matter. Please understand that if your organization qualifies for coverage under the PF Act, you MUST IMMEDIATELY advise your management to get a Code No. under the PF Act and extend coverage to all eligible employees under the said statute.

While you are at it, you may also examine your Company's eligibility for coverage under the ESI Scheme and do the needful at the earliest. I will strongly advise you NOT to leave this very serious violation of the law for another day. Act immediately to ensure proper compliance.

Vasant Nair