Dear Swastik Scales Industries,
The Salary structure differs from company to company based on their C & B policies.
Components in the salary would be -
- Basic - 35% - 50% of Gross
- HRA - 40% of Basic for Non metro & 50% of basic for Metro
- Conveyance allowance - Maximum of Rs. 800 per month which is Max of Rs. 9600 P A
- Medical Reim - Rs. 1250 / PM which can be of Rs 15000 PA
- Special Allow - Balance of Gross will be provided as Spl Allow
Emp Contribution - 12% on Basic
Emp'r Contribution - 13.61% on basic
ESI - Applicable if the employees Gross Salary is less than or equal to Rs.10000 "editted" mistyped, ESI limit is Rs. 15000.
Emp Contribution - 1.75% on Grorss
Emp'r Contribution - 4.75% on Gross
Professional Tax -
Varies from State to State
CTC = Gross + PF (Emp'r Cont) - ESI (Employer's Contribution)
Net Salary = Gross - PF (Emp Cont) - ESI (Emp Cont) - PT
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, you can split the special allowance into the following - LTA, Food coupons (Sudexo), Petrol and car allowance etc.
The percentage of Variable Pay also differs from company to company based on the C & B Policy.
Dear Mr. Satish, Thanks for the concern. It was mistyped. The ESIC limit is 15000. I will have it changed by using "EDIT" option.
Thanks for your reply however i still have a query.. My company is a Sole Proprietor ship firm in FMCD industry and here we dont have any deductions..The components in the salary structure is the Basic (50 % of gross) + HRA ( 30% of gross) + Conveyance of 800rs per month and 5% deduction of Bonus and the balance of the CTC is given as Other allowance. There is no gratuity , no PF, no ESIC and no PT . ( PT is not included since our unit is located in Tax free zone.. Are there any mandatory changes to be made according to the law..Please advice.
Sole proprietorship firm registration is not mandatory if there is no trade (ie only services etc). If registered it should be with the local registrar or sub registrar only.
Your firm will be applicable for PF and ESI as pet the law.
EPF, if the minimum employees are 20 and above
ESI, if the minimum employees are 10 and above.
TDS may be deducted if your firm falls under audit, incase if your turnover is more than 50 lakhs.
I would like to make small change in TDS
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