I will be designing salary structures for the first time for a startup organization. I have just 2 days to finalize the same. Can you help me on how to design a salary structure? How do you decide on the CTC amount? In case the CTC amount is 4.25 lakhs, then how do you calculate the Basic? Once you know the basic, you can calculate the remaining amounts.
From India, Mumbai
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2From India, Mumbai
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Once the CTC amount is finalized, there is a need to frame the salary particulars, which encompass:
1. Basic - 35% of CTC - Taxable - 12,400
2. DA - 5% of CTC - Taxable - 1,770
3. HRA - 40% of Basic + DA - Non-Taxable (NT) - 5,670
4. Conveyance - Fixed - NT - 800
5. Medical Allowance - Fixed - NT - 1,250
6. Lunch Allowance - Fixed - NT - 1,350
7. Special Pay - Balance - Taxable - 8,920
GROSS FIXED ............................................. 32,110
PF - 12% of BASIC + DA - 1,700
Gratuity - 5% of BASIC + DA - 710
Lunch - Fixed (Company Contribution) - 700
Insurance - Fixed (Company Contribution) - 200
GROSS BENEFITS ....................................... 3,310
CTC .................................................. ........... 35,417
Other factors such as LTA, Site Allowances, Variable pay, etc., will also come into play depending on the nature of the company and the work involved.
The amount for insurance varies from company to company.
I have divided your above-mentioned CTC of Rs. 425,000 by 12 months, which comes to around 35,416.66, so let's round up to Rs. 35,417.
Special allowances are a taxable amount and are mainly used to balance the CTC.
I hope this will help you understand the basic concepts of a salary structure.
From India, Bangalore
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1. Basic - 35% of CTC - Taxable - 12,400
2. DA - 5% of CTC - Taxable - 1,770
3. HRA - 40% of Basic + DA - Non-Taxable (NT) - 5,670
4. Conveyance - Fixed - NT - 800
5. Medical Allowance - Fixed - NT - 1,250
6. Lunch Allowance - Fixed - NT - 1,350
7. Special Pay - Balance - Taxable - 8,920
GROSS FIXED ............................................. 32,110
PF - 12% of BASIC + DA - 1,700
Gratuity - 5% of BASIC + DA - 710
Lunch - Fixed (Company Contribution) - 700
Insurance - Fixed (Company Contribution) - 200
GROSS BENEFITS ....................................... 3,310
CTC .................................................. ........... 35,417
Other factors such as LTA, Site Allowances, Variable pay, etc., will also come into play depending on the nature of the company and the work involved.
The amount for insurance varies from company to company.
I have divided your above-mentioned CTC of Rs. 425,000 by 12 months, which comes to around 35,416.66, so let's round up to Rs. 35,417.
Special allowances are a taxable amount and are mainly used to balance the CTC.
I hope this will help you understand the basic concepts of a salary structure.
From India, Bangalore
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Dear Namrata, I 've attached an excel sheet on CTC calculation for your reference. This file I downloaded it from CiteHR, hope it helps you. Regards, Jessie J
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
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Basic 30% -> HRA 50% of Basic. Personal Allowance/Special Allowance/City Compensatory Allowance: difference of all. Food Coupons: 1300/2600. Business Reimbursement: as per designation. PLI: the percentage fixed as per designation. PF: Mandatory 12% of basic or 6500. LTA: As per level. Anything more, do let me know. Thanks.
From India, Mumbai
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From India, Mumbai
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Hi Guys, As requested I am attaching 2 files, check whether it clarifies your queries or else specify exactly what you are looking for, as it will be easier for all of us. Regards, Jessie J
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Salary structure CTC 15000.xlsx
Salary calculation.doc