13-09-2008, 07:32 PM
|  | | | Join Date: Mar 2008 Location: Coimbatore
Posts: 15
| |  Salary Breakup-Clear Explanation please
Hi All,
I am working for the garment retail industry. I m a new kid on the floor. I need your help in understanding the salary break up.
i hv a prob in understanding the salary break up, like, do v hv any % for the DA, HRA, CA, Special allowance, conveyance, other allowances. Is it calculated by % or by any specific amount.
What are the contents of the salary break-up? Does the break up differ from mgt to mgt? plz do help me?
Thanks and Regards,
Sriram V B |
14-09-2008, 12:29 PM
| | | | Join Date: Feb 2008 Location: pune
Posts: 4
| |
Hi Sriram,
Greetings,
The basic is to be calculated @40% on CTC.
HRA is to be calculated @40% of basic salary
Medical Allowance is fixed @1250
Special Allowacw will be the balance rem.
Also you have to deduct PF@12% of basic Salary
Professional Tax as applies.
This is the basic information.
Cheers
Geetanjali |
14-09-2008, 08:40 PM
| | | | Join Date: Mar 2008 Location: Coimbatore
Posts: 15
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Hi Geetanjali,
Greetings,
Firstly, i wud liked to thank u 4 ur reply.
My co. calculates in a diff manner, like, i dont think v calculate on any %'s.
i think the break-up differs mgt to mgt. lots of difference in wat % u hv given to me.
I hv some other questions, which is the below break-up is as per Tamil Nadu:-
(1) Basic Pay - 2500 and above, HRA will be taken into account
(2) Basic Pay - < 2500, DA will be taken into account.
(3) Conveyance, special allowances and other allowances, etc... comes below those above as per the % (% is my question)
(4) Deductions PF, ESI, PT as per the law.
(5) Mediclaim, max is 1250, min any amount. (deduction 4 months in a year)
(6) Holiday Allowances as per the holidays allowed in FORM V
Does the % differ from company to company or the same as per the govt law.
AM I CORRECT OR ANY MISTAKES IN THE ABOVE
Do correct me if i hv gone wrong in any place
Thanks and Regards,
Sriram V B
Last edited by vbsriram; 14-09-2008 at 08:43 PM.
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14-09-2008, 10:18 PM
| | | | Join Date: Jan 2008 Location: New Delhi
Posts: 12
| |
Hi Everyone
Can you please help me, i am working in a staffing company and looking for a salary structure where i can divide more on incentive based.
Can you please help.
Thanks |
15-09-2008, 01:19 PM
| | | | Join Date: Jul 2007 Location: mumbai
Posts: 29
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cAN YOU PLEASE TELL ME HOW IT WILL BE CALCULATED FOR IT - SOFTWARE INDUSTRY ?? |
15-09-2008, 03:24 PM
| | | | Join Date: Mar 2008 Location: Kolkata
Posts: 8
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can any one tell me whether both DA & HRA can be incorporated in the salary stucture ? If yes then what max % is allowed, if no then let me know the exact way to bifurcate both..
Regards
Sangeeta |
15-09-2008, 04:03 PM
| | | | Join Date: Oct 2007 Location: Chennai
Posts: 93
| |
Hi Sriram,
As u requested, Plz find below the salary break up
Basic : 30% 50% of CTC (Cost to Company)
HRA : 50% of Basic for Major Cities (i.e) Chennai, Delhi, Mumabi & Kolkata
40% of Basic for all other locations
Dearness Allowances (D.A) : Most company will not have which is alloted by the governement and this amount is fully taxable
Transport Allowance : Till Rs.800/- (per month) is not taxable
Telephone Allowance : Completely taxable
Deputation Allowance : Completely taxable
Provident Fund : 12% of BAsic
Gratuity : 4.8% of Basic (Employees who worked in an organisation for minimum 5 yrs are eligible for the same)
Hope the above details if calrify some of ur doubts
Best Regards
Isaac Patturaja
9444637384
__________________
Best Regards
Isaac Patturaja
|
15-09-2008, 04:23 PM
|  | | | Join Date: Jul 2007 Location: New Delhi
Posts: 35
| |  Salary
Dear Friends
Might be it is helpfull to you all
Pls Note:
1.) For every Cash component paid to employee Employer has to bear FBT Cost
2.) Any kind of Reimbursement should be part of CTC
3.) Some Co. also include Performace Pay Bonus as part of CTC
For any detail you can mail me
Regards
Nikhil Kumar
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15-09-2008, 04:26 PM
| | | | Join Date: Apr 2006 Location: Mumbai, India
Posts: 25
| | hi
Hi Sriram, First thing you should understand that there is no such thing as fixed pattern of salary, it changes from company to company. The illustration given by Geetanjali is one way of fixing up a salary structure. One way which is normally followed in the organisation is Basic Pay: There is scale for basic pay as per level / designation say Rs.X Dearness Allowance: Normally seen in salary structure of Govt Orgs, Its calculated based on Consumer Price Index HRA: It depends on Basic Pay, varies from 20-50 % of basic pay CCA: Again one of the rarely seen component. Depends on company policy Conveyance / Transport Allowance: varies, allowance upto rs. 800 per month is tax exempt Medical: Normally Rs.1250 per month or some companies gives on yearly basis Rs.15000 which is tax exempt, reimbursement on proof is possible Special Allowance: Some time when you hire a employee from outside just to match CTC with negotiated figure, which if not possible to get because of some restrictions like limit of basic pay for given designation, it is adjusted in this allowance. Can be named under any allowance like Professional Support Allowance / Development Allowance etc. Deductions PF: 12 % of basic Gratuity 4.81 % of basic Superannuation etc So when you say (1) Basic Pay - 2500 and above, HRA will be taken into account (2) Basic Pay - < 2500, DA will be taken into account. Its entirely company policy and you need to understand from your company person. Salary structure may change from Management to Management as percentage of some allowances may change according to level for example if there is allowance called Mobile Bill reimbursement it may change. Renu When you design a CTC structure which is incentive based. Some percentage of CTC is kept as performance based incentive. Percentage of this incentive increases as level is increased. Normally at entry level / junior level incentive is 10-15 % of CTC Middle level 20-30 % CTC Senior level 20-45 % CTC Some times for president / COO / CEO / MD level incentive can be as high as 50-60 % of CTC There can be different type of incentives- Individual performance
- Group Performance
- Company performance
Some formula may be worked out to decide exact calculation Sangeeta Both DA and HRA can be part of Salary as functionality is different and they are no way interrelated. So refer my earlier comments. Calculation of DA There will be something called of Base CPI taken at some reference point And there will be current average CPI at given quarter DA is % of Basic salary and this percentage is calculated as DA % = % increase over base CPI For ex Current Avg CPI is 3150 Base CPI is 1708 Then % increase is 84.4 % So DA will be 84.4 % of basic pay Regards, Sushil Patil  |
15-09-2008, 07:03 PM
| | | | Join Date: Feb 2007 Location: Chennai
Posts: 108
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Thanks for the info friends. I've a doubt. Is there any legislation(s) regarding the salary break up % other than the Minimum wages?
Pls Let me Know.
Thank you.
Kumanan. A |
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