Salary Structure Components - Variable Pay - car allowance
CiteHR
 
HOME ANSWERED NEW ABOUT LOGIN
Home > Human Resource Section > Talk To Seniors

Salary Structure Components - Variable Pay

Satwik Scales Industries Started The Discussion:

Dear Friends, I would like to know about the basic and mandatory elements in the salary structure and their percentages.. I need a structure which is standard . :)

Sharmila Das - Senior Member
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

Statutory Contributions:
EPF
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.

Sharmila Das - Senior Member
Dear Mr. Satish, Thanks for the concern. It was mistyped. The ESIC limit is 15000. I will have it changed by using "EDIT" option.

aa_somani - Contributing Member
Hello In addition to Sharmila`s reply I am also enclosing herewith detail salary structure along with computation.


Attached FilesProvided by community member aa_somani. Join us to learn and grow with your peers.
File Type: xls Computation for Financial yr. 12-13.xls (45.0 KB, 379 views)
pandit satish - Contributing Member
okzzzz. Bade bade shehron me chhoti chhoti baten hoti rehti he..............................................sanorita. Ha ha satish

Dear Sharmila,

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.


Quote:
Originally Posted by Sharmila Das View Post
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

Statutory Contributions:
EPF
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.

Sharmila Das - Senior Member
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.

aa_somani - Contributing Member
Hello Sharmila

I would like to make small change in TDS
  1. There is no criteria of Audit in case of Salary whether firm is proprietary, partnership, Company or whatever. TDS on salary is applicable for every entity.
  2. If turnover of proprietorship firm exceeds Rs. 60 Lakh in case of Business or Gross receipt of Professional services exceeds Rs. 15 Lakh. In this situation TDS on other services is applicable from next year.

Well want to edit something- CTC Come- Gross Salary+ PF(Employer’s Contribution+ ESI(Employer’s Contribution)

ameeth12 - 
Hi All,

Would anyone please provide me updated rule for applicability of Professional tax for Karnataka :

a) applicable for type of organisation / establishment ?
b) Minimum noumber of employee require for PT ?

Best Regards,
Amit

Found This Useful? +Vote Up This Page Via Google.  

Why Vote? User validation is extremely important for good content to prosper.


Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.






Explore Topical Knowledge Areas

Interesting Relevant Discussions


DISCUSSSION STATISTICS


13
LIKES

2200
VIEWS

10
REPLIES

PLEASE KEEP YOUR CONDUCT PROFESSIONAL AND POLITE


3M Users, 100K+ Documents & 450K+ Discussions

Share »

Community Support & Professional Insights. Login or Register.
Email/Username     Password  

About Us - Advertise - Contact Us - RSS   On Google+  
All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network