What are the general components of salary in India?

Dear Swati,

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Srinivas

Dear Afolabi Ajayi,

Got the full details about the salary coponents. This would help me in structuring the package for employees. Thank you very much.

Vasanthi
Chennai
+91 98408 63066

Hi

General components of salary in india varies from organisation to organisation but the most common are

1.In Government Circle

Basic Pay
Dearness Allowance
House rent Allowance
Conveyance / Transport Allowance

2. In Semi Govt. / PSU

Basic pay
Dearness Allowance
House rent Allowance
Conveyance / Transport Allowance
City Compensatory Allowance.

3. In Induatrial Organisation

Basic Pay
Dearness /Variable Dearness Allownace
House Rent Allowance
Conveyance / Transport Allowance

4. In Other establishments

Basic pay
House Rent Allowance
Conveyance / Transport Allowance

Rest all other components are "just named" or "to save tax" components, which depends upon the thought process of naming an allowance by organisation.

You are free to give a name to any component untill or unless it has no relevance with statutory requirements e.g EPF, ESI, Bonus, Gratuity , I Tax and Ind.Dispute Act.

Regards

Anil Anand

hiii all...

The general components of salary was too good and informative..but i have a query regarding the calculation of cost to company..
Can anyone tell me how to go about it!!!

Regards

Tanu..

What do you mean by professional enrichment allowance

Dear

You can add the following:

Telephone Reimbursement (bi-monthly)

Internet reimbursement

Turnout Allowance (Security and others)

Split Shift Allowance ( For drivers and others)

Credit Card Annual Fee reimbursement

Gardner Allowance (For senior executives)

Domestic Help allowance (Senior Executives)

Leave Travel Concession or Leave Travel Assistance

Charge Allowance( Some body is discharging the HOD responsibility for more than two months) or Officiating Allowance

Professional Fee Reimbursement (The fee paid to the professional bodies
by the employees/executives can be reimbursed)

Disturbance Allowance (In case of transfer and not shifted family to the present place of posting)


Regards

A.Ratna Sekhar
Manager-IR&W
919448205687

Thank you very much for your reply madam.By the way i am smitha.I would like to more about HR.Actually I have a paasion to get into HR.But I do not understand from where to start and how to start?could anyone help me pls.I am doing my MBA in HR but working as Administration and Finance Executive.

Dear friends,

I would like to know what percentage of Total earnings must be the basic pay and allowances etc etc... I guess there must be some measure for every thing. I hear ppl telling Basic pay must be 25 % and some 40 % so I am not sure about that. I will be fine if someone tell me the exact details of it.

Thanks a ton !!

~harry

Hi ,

Request please tell what is the effect of these benefits on CTC for the employee .?

Thanks amar

Dear harry

Generally you can take 35 to 40 % as basic. Let me explain you this way
let the gross is Rs 2,00,000 / annum and the following components can be derived ( Annual figures)

Basic : Rs 80,000 (40 % of Gross)
HRA : Rs 32,000 (40% of Basics)
CCA : Rs 16,000 ( 20% of Basics)
PF : Rs 9,600 ( 12% of Basics)
Medical Reimb. Rs 15,000 ( Maximum limit)

Find the total of these components and let that total be X. then find out the difference between 2,00,000 and the X and that amount you can adjust for other allowances and reimbursement.

Regards
R.Karanik