mail2murugesan.e Started The Discussion:
Dear All, How to calculate Basic Pay, DA, HRA, Conveyance & Other Allowances from Gross Salary of Rs.20,000/-. I want know the correct formulas. Kindly do the needful. Regards Murugesh
23rd September 2009 From India, Madras

I also need the same format for calculation of Basic, PF, Conveyance, pay slip etc.
And I ned the struture/policy if you have regarding conveyance + meal claims of marketing emoloyees who are in field.
Please help...
23rd September 2009 From India, Delhi
hi all, Pls tell me procedures for filling up & how to submit of PF, ESI, Prof . Tax forms. regards, Shivakanth
23rd September 2009 From India, Hyderabad

Please note, there is no single formula to arrive at Salary Breakup and there are different formulas followed by different organizations, as per their own thinking and convenience. While deciding salary structure one has to remember following points
  • Most of the statutory liabilities like PF, Gratuity, and Bonus etc. are percentages of Basic plus DA. Hence any rise in Basic or DA will increase statutory liabilities
  • It is not necessary to have DA in Salary Structure. For that matter none of the items are compulsory or must.
  • Income Tax treats some salary items (HRA, Conveyance) differently for the purpose of calculation of Income Tax liability. Hence organizations decide the breakup considering legal provisions to minimize tax liability.
  • Some organizations keep some or all items of salary structure as percentage of Basic Pay. Whenever there is increase in Basic Pay, other items also increase automatically.
  • Some organizations keep some or all items of salary structure as fixed allowances. In this case allowances remain uniform in respect of all employees. These allowances won’t change unless specific rise is given in those allowances.
  • Some organizations divide entire gross salary into fix percentages to arrive at breakup of salary structure. In this case only percentages are uniform but allowances of individual will be different.
One can choose any one combination or can also have mixed combination/s.
Also search for previous posts on same subject. There is lot of material already available on citehr.

Thanks & Regards

24th September 2009 From India, Pune
IT is may be useful
24th September 2009 From India, Hyderabad
Attached Files
File Type: xls MUSTER SHEET.xls (20.0 KB, 30044 views)
Dear All, Hope the attachment will help you out with Salary calculation and break up!!
24th September 2009 From India, Pune
Attached Files
File Type: xls Salary Break up calculator.xls (17.0 KB, 31296 views)
Dear All,
I am newly appointed as HR-MANAGER,in an educational institute. The total number of employees are 60.but employees drawing salary less thn 6500/p.m. are only 5. I want to know the institute is coverable under E.P.F.and E.S.I.C. ACT or not.
Thanks & Regards
24th April 2010 From India, Delhi
I Thinks the percentages in the attachment are not that much satisfying. CCA Should be not more than Rs.800/- TA should be not more than Rs.1200/- Thanks Sekhar
11th June 2010 From India, Hyderabad
Dear Mr. Murgesh,
Kindly calculate..the 30% basic in the CTC.
40% HRA in the Baic.
TA deduction (approx 800/month).
PF-12% of Basic.
Bonus - 10% Baic
(I think he/she is not application to ESIC deductions).
Medclaim - as per company agreement with (Insurance commpany).
Other Balance amount to be in special pay.
11th June 2010 From India, Madras
My Salary is 14000. pls divide the % into fragements such as(Bsaic, HRA, Medical, Spl. Allowance)
15th June 2010 From India, Delhi

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