Mukul Mathur
Human Resource
Jaisharma2007
Manager-hr
Valli.sujankumar
Regional Human Resource
Alcatraz.rajeev
Sap Hr Consultant
+3 Others

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Hello members,
I am unsure about the accurate salary calculations. Pls find the attachment
here basic is 40% of net and HRA is 50% of basic. There is no DA. The components are fixed, but would like to know the correct apportionment. Pleaseeeeeeeeeeeee help, as this is very urgent.
Thanks in advance
Sukanya

From India, Gurgaon

Attached Files
File Type: doc salary calculation.doc (38.0 KB, 10370 views)

Hi,
Every thing is pretty fine with it,though you can make some modifications like limiting the employer contribution of pf to 780 rupees,but again its a policy
decision you have to check it out with your management if they would like to limit their contribution of PF.
Regards
Jai

From India, Pune
Hi, There is no Conveyance Allowance (Rs.800/-) Basic should be calculated on CTC not on the Net Pay. Otherwise everything is fine. Regards, Sujan
From Australia, Parramatta
Don’t worry..The structure is absolutely fine. However, it is not a tax friendly structure.
From India, Mumbai
HI,
This stack-up sheet does lack Conveyance allowance(Rs.800 Pm) as sujan says (check if they have LTA instead) and aslo lacks Mediclaim (Rs.1250 pm); though they provide you with Medical Insurance & Accidental Insurance Premium, these most often should be over and above your CTC.
Your CTC is fully taxable, so do chat with your HR if this CTC can be made any tax friendly by having LTA reimbursement or any other Fringe Benefits.
Otherwise this structure looks fine.
Thanks,
Meena Kumari R
HR Specialist


I deeply thank the members for these inputs.
But would like to know, how is the conveyance calculated.
Ms Meena and Mr. Vali, you have suggested Rs 800 for conveyance, which is 3.05 % of the gross. Is that the % age that we consider for appoertioning conveyance??
Also Ms. Meena, there is LTA present in the stucture in CTC. So can the employee get a tax benefit here.
Thanks
Sukanya

From India, Gurgaon
Hi,
Conveynce is most often a fixed amount in the salary component and is Rs.800 per month (Rs.9600 pa). (dont think its calculated in percentages)
LTA is tax benefit given by the employer, you can claim it by producing your travel receipts / bills; otherwise this amount will be anyway paid to you at the end of the year and will be fully taxable.
Thanks,
Meena Kumari R
HR Specialist


Hi Sukanya,
Usually Conveyance allowance has been kept @ Rs 800 pm, as per the IT act it is non-taxable upto Rs 800 pm. I.e it would save tax of the employee.
There is no such ruling that it cannot go beyond Rs 800 pm.
Regarding LTA, it is a non-taxable component subject to the production of bills by the employee. An employee is eligible to avail it twice in a block of 4 years. These blocks are already defined in the IT act. I thivk the running block it 2006 - 2009.
It is an optional componenet which an organization may choose to offer to its employees in order to extend an option to save tax.
Hope this would bring in more clarity.
Regards

From India, Mumbai
Dear Sukanya,
When you say Cost to company PF contribution from "EMPLOYEES" do not add to CTC,
Please find breakup of the salary structure of the individual who is having gross salary of 3.0 lakhs as per your % basis only
Basic 120000.00
HR 48000.00
MCA 78000.00
Special allowance 54000.00
Total Gross salary is 3,00,000.00
TO this add PF EMPLOYER CONTRIBUTION INCLUDING EDLI & PF ADMIN CHARGES OF 16332
Add LT & Medical / accidental insurance of 12000+1158+506
Hence his Total CTC would be 329996.00( approx 3.3 lakhs)
PF "Employees" contribution is not part of CTC( since the same is being deducted from employees gross salary.
if you are adding this to his special allowance & then deduction from his salary the employee will be taxed on special allowance( in extra) & PF benefit on taxation will be nullified.
Regards
Rajeev

From India, Bangalore
Thanks Rajeev and Mukul,
Would like to have some information on LTC form all of you members.
Mukul, as you have said that LTC can be availed twice in a block of 4 years. Is it also applicable for service industry?
One qtn: if we are alloting LTC of Rs. 12000/- and he is not able to avail it or does not apply for it, his LTC will carry fwd or get exhausted?
Also in LTC, the employee enjoys tax benefit, but what about the employer? If the employer has to pay taxes for the benefit, then how do we convince them to include it in the cTC of all.
Would require your comments on the above
Regards
Sukanya

From India, Gurgaon

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