HONEY (HR MANAGER) 14 March 2008

salary breakup

Hi all

Can i have salary breckup format and on what percentages it is been calculated for the IT company law.

I dont have any idea that what percent of the total salary will be the basic,HRA & convayance.

Thanks,

Honey Rodarigues

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5 Replies

veenzar (Advocate) 14 March 2008

We need to decide some main componenets of the CTC to design the entire salary structure. It depends on the components you use in your CTC. The basics are...generally

BASIC = 25-30% of CTC

HRA = Maximum 50% basic (Metro cities) 40% basic (non metro cities)

Conveyance = Rs 800 (Max)

rest of the components should be filled accordingly

and the must things are

PF = 12% of basic (employers and employees contribution)
ESI = 4.75% of gross salary (Employers contribution)
= 1.75% of gross salary (Employees Contribution)

these are the must components...rest of them depends on the components used in your company.

Also, some components of the salary are reimbursement depending on the CTC.

Guest (n/a) 14 March 2008

1-Basic 2-HRA 3-Conveyance 4-LTA 5-Medical 6-Superannuation fund 7-Provident Fund 8-ESI 9-Children Education Allowances 10-Gratuity 11-leave Encashment 12-incentive

Guest (n/a) 16 March 2008

Hi, In general , BAsic=40-50% of Gross HRA=50%(Metro)/40% on Basic Conveyance=800 per month Remaing all depending up on the company pay structure and comes to deductions 01.ESI(<=100001 gross only)=1.75% on gross(Employee) 4.75% on gross(employer) 02.PF(<=6500 Basic )=12% on basic (Employee =13.61% on Basic (Employer) 03.Professional Tax= depends upon the gross salary slab, Regards, Murty

HONEY (HR MANAGER) 17 March 2008

THANKS,

MURTY

FOR THE REPLY.

REGARDS,

HONEY RODRIGUES

Chitra Sharma (Executive - HR) 18 March 2008

BAsic=40-50% of Gross HRA=50%(Metro)/40% on Basic Conveyance=800 per month, Children Education = Rs 100/-, Medical Reimbursement = Rs 1250/- (fixed), Telephone expenses = Rs 500 - Rs 750, book & periodicals = Rs 500 Remaing all depending up on the company pay structure and comes to deductions 01.ESI(<=100001 gross only)=1.75% on gross(Employee) 4.75% on gross(employer) 02.PF(<=6500 Basic )=12% on basic (Employee =13.61% on Basic (Employer) 03.Professional Tax= depends upon the gross salary slab,