Hi! Can u guide how to prepare a basic salary structure, the criteria in which salary can be paid etc...., Regards, Ram.
From India, Madras
From India, Madras
Hi
The Salary structure varies company to company based on their C & B policies. Some of the basic 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
Statutory
1) PF
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 Gross
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)
Rgds
Kartheka
From India, Madras
8The Salary structure varies company to company based on their C & B policies. Some of the basic 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
Statutory
1) PF
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 Gross
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)
Rgds
Kartheka
From India, Madras
thanx alot its useful to me Please let me know what kind of tax benifit will be for the special allowance it wont increage the tax of the employees?
From India, Mumbai
From India, Mumbai
Hi
The salary received under the pay head special allowance is fully taxable. If you are in the higher salary bracket means you can split up your salary under the following pay heads to avoid tax.
Uniform allowance
Wash allowance
Also you can split your salary under LTA, Car Hire, Petrol & Maintenance, Driver salary etc, where FBT is applicable on the same.
Rgds
Kartheka R
From India, Madras
The salary received under the pay head special allowance is fully taxable. If you are in the higher salary bracket means you can split up your salary under the following pay heads to avoid tax.
Uniform allowance
Wash allowance
Also you can split your salary under LTA, Car Hire, Petrol & Maintenance, Driver salary etc, where FBT is applicable on the same.
Rgds
Kartheka R
From India, Madras
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Creating a Competitive Salary Structure.doc
Salary Structure.zip