Namrata.Trivedi Started The Discussion:
Hello Everyone,
I will be designing salary structures for the first time for a startup organization. I have just 2 days to finalise the same. Can you help me on how to design a salary structure. How do you decide on the CTC amount. In case the CTC amount is 4.25 lacs, then how do you calculate the Basic. Once you know the basic you can calculate the remaining amounts.
Please help. Urgent.
10th November 2009 From India, Mumbai

Dear Namrata,

Usually once the CTC amount is finalised, need to frame the salary particulars, which encompasses of ...

1. Basic 35% of CTC Taxable 12400
2. DA 05% of CTC Taxable 1770
3. HRA 40% of Basic +DA Non Taxable (NT) 5670
4. Conveyance Fixed NT 800
5. Medical allowance Fixed NT 1250
6. Lunch Allowance Fixed NT 1350
7. Special Pay Balance Taxable 8920

GROSS FIXED............................................. ...........................32110

PF 12% of BASIC + DA 1700
Gratuity 05% of BASIC + DA 710
Lunch Fixed (Compy contribution) 700
Insurance Fixed (Compy contribution) 200

GROSS BENEFITS .................................................. ...................3310

CTC .................................................. ....................................35417

The other factors will also come in to place like LTA, Site Alloances, Variable pay etc depending on the nature of the company and the work involved.

the amount for insurance varies from company to company.

I have divided your above mentioned CTC of Rs. 425000 by 12 months, it comes to around 35416.66, so lets round up to Rs. 35417.

Special allowances is an taxable amount and is mainly used to balance the CTC.

I hope this will help you to understand the basic concepts of salary structure.

With Regards,
Sunil Sundar
10th November 2009 From India, Bangalore
Hello: What is the general practice with employers contribution to PF? Is this amount included in the CTC? So basically CTC will include the 12% Employee contribution and 12% employer contribution?
11th November 2009 From India, Madras
Dear Namrata, I 've attached an excel sheet on CTC calculation for your reference. This file I downloaded it from CiteHR, hope it helps you. Regards, Jessie J
11th November 2009 From United Arab Emirates, Dubai
Attached Files
File Type: xls Salary%20Structure(1).xls (34.0 KB, 20314 views)
Hi Namrata,
Basic 30%
HRA 50% of Basic
Personal Allowance/Special Allowance/City Compensatory allowance : difference of all
Food Coupons : 1300/2600
Business Reimbursement : as per designation
PLI: the % fixed as per designation
PF : Mandatory 12% of basic or 6500
LTA : As per level
Any thing more do let me know thanks
11th November 2009 From India, Mumbai
12th November 2009 From India, New Delhi
Dear Sir,
my question is central government notification contractors "contract labour" gradation Technichian , supervisor, Skill , Semi Skill , UnSkill minimum wages act as per central government rulls.
Please notification document send to my id.
thanking you,
Yours faithfully.
12th November 2009 From India, Calcutta
hi members, can any one give me 8 lacks salary break up. please check the attached break up which i did and let me know if there is any thing wrong. waiting for you valuable advice. thank u, :)
12th November 2009 From India, Hyderabad
Attached Files
File Type: xls break up fr 8lac.xls (14.5 KB, 5829 views)
Hello to ALL, please check the attached break up which i did and let me know if there is any thing wrong. waiting for you valuable advice. regds,
12th November 2009 From India, Hyderabad
Attached Files
File Type: xls Final_pay_month_and_annual-1.xls (34.0 KB, 6238 views)
and also tha components of gratuity with explanation please.... along with the calculation of the same
12th November 2009 From India, Madras

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