Hi B Neelavathi,
The Salary structure varies company to company based on their C & B policies. Some of the common Pay heads used are
1) Basic - 35% - 50% of Gross
2) HRA - 40% of Basic for Non metro & 50% of basic for Metro
3) Con - Max Rs. 800/ P M which is Max of Rs. 9600 P A
4) Medical Reim - Max Rs. 1250 / PM which can be max of Rs 15000 PA
5) Spl Allow - Balance of Gross will be provided as Spl Allow
Emp Contribution - 12% on Basic
Emp'r Contribution - 13.61% on basic
2) ESI - Applicable to employees whose Gross Salary is less than or equal to Rs.10000
Emp Contribution - 1.75% on Grorss
Emp'r Contribution - 4.75% on Gross
PT - It Varies State to state
Net Salary = Gross - PF (Emp Cont) - ESI (Emp Cont) - PT
CTC = Gross + PF (Emp'r Cont) - ESI (Emp'r Cont)
Gratuity = Basic *15/26 - It is payable to the employee who completes 5yrs of service in the organisation. It can be showed as a part of CTC.
If Employees coming under high Salary Then you can again split up the amount in Spl Allow As
1) Food coupons
2) Car Hire
3) Petrol and Maint for Car
FBT is applicable Apart from LTA.
The Variable Pay % also differs company to company based on the C & B Policy. In my previous organization it is 12.5% of the CTC for all the Dept except Sales. For sales it will be 15%.
M V Muthu Krishnan
This is Lakshmi and I am joining a IT Firm which is opening its branch in Bangalore. In US its already established. I have to go ahead and design the salary structure for the employees in such a way that Tax deductions is less. I am new to C & B topic.
Can you help me on the components to be concentrated on..
Also, is there a standard excel salary break up sheet?
I will be really thankful if you can help me out in designing the structure.
Please find new version of Salary Master with new Feactures..
Totally Usefriendly program.
You can enter your Company name,Address,Department,Designations
You can set Categoeries of Fixed earning-Other Earning-Fixed deduction-Other deduction in Salary Slip.
You can set limit of ESI,P.F,Income Tax Slab for Man and Woman,Surchage setting,Professional Tax.
Program is Designed on Two mode
(1) In Auto mode salary slip will be generated as per Your predefined data given in "Company Detail Sheet"
(2) In Manual mode Salary Slip will be generated as per Manual detail given by You.It will not concern with the data given by you in "Company detail sheet"
Ex: We need to generate salary for Regular Employee as per company Policy for that You may put this employees on Auto mode and it will generate Salary slip as per your predefined data (If Basic is 25% of Gross than auto calculate it)But Some Employees are Temperaroy or We don't Follow Rules as per Regular employee so that This Type of Employee Put on Manual mode and enter your Data manually(here You have manually enter Basic and other details).
3-Generate Salary Slip.
4-Track Employees' Leave history.
5-Track Income Tax of All Employee.
6-Print out Leave History of Employee.
8-Master Data sheet of All Employees.
9-Leave Calculation sheet.
10-ESI Calculation(Set Your Requirements)
(Here there are Two Options one is if Basic<=6500 than Basic*12% otherwise 6500*12%
Second is 12% of Basic)
12-Pension Scheme (not more than 541 rs submission)
14-Annual Salary statement of Employee and Employer
15-Employer Monthly Salary statement
16-Income Tax Calculations
17-Generation of Form No-6 (For ESIC)
18-Generation of Form no-3A (PF)
19-Generation of Form no-6A(PF)
Limitation: You have monitor Leave of employee each month when It goes minius Red indication is glow on that cell so You have to Put it on LWP otherwise minus leave will effect on salary sllip generation.
Requied Attention: Please be vigilant about Auto and Manual mode and P.F Selection.
If You find this is useful for You than Don't miss to deop Thanks...
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I hope my previous post not satisfied your question... Which is your current industry? Have you already done the grading of employees? Are you ready with all department organisation charts? Because these are the basic elements in C&B.
Sorry for the delay in replying...
Have you got the answer or still require some?
If you tell me what are the components you are using in your pay structure? If I get an idea then I will help you on tax Deduction..
M V Muthu Krishnan
Not a problem. Our company is taking the help of VnV associates for designing the ctc break up structure.
We have the following slabs:
0-5 lacs; 5-10 lacs; 10-15 lacs and 15+ lacs..
As we started the operations only in month of feb, we have considered them as consultants and from april 1st, shall consider them as permanent employees.
Kindly give me an idea of what can be different perquisites that can be provided to the employees.
In addition to Muthu's break up of salary for the highly salaried people, the following components can be considered.
1. Children Edu. Allownce - Rs.200/- p.m (Rs.100 per child)
2. Children Hostel Allowance - Rs.300/- pm per child
3. Club Allowance
4. Superannuation - 15% of basic.
The above are tax exempted.
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