Hi,
As there is lot of difference in practical and theoretical knowledge I want to know, "how to do the salary backup?"
Means if you are offering 4 LPA salary to the emp. then how will be the brake up i.e what would be the gross salary, net salary, basic sal., HRA, LTA, PF………
Thanks & Regards,
Madhavi
From India, Hyderabad
As there is lot of difference in practical and theoretical knowledge I want to know, "how to do the salary backup?"
Means if you are offering 4 LPA salary to the emp. then how will be the brake up i.e what would be the gross salary, net salary, basic sal., HRA, LTA, PF………
Thanks & Regards,
Madhavi
From India, Hyderabad
Hi,
You can fix up % for each component and the balancing figure would be any other allowance, for e.g. Basic --% of CTC, HRA --% of Basic, LTA--% of Basic and balance is other allowance. Always keep basic salary as base and high % may be 50% so you could get balance figure. Please keep management in the loop and do it for all employees so it will help you in appraisal as well.
Regards,
Jitendra
From India, Mumbai
1You can fix up % for each component and the balancing figure would be any other allowance, for e.g. Basic --% of CTC, HRA --% of Basic, LTA--% of Basic and balance is other allowance. Always keep basic salary as base and high % may be 50% so you could get balance figure. Please keep management in the loop and do it for all employees so it will help you in appraisal as well.
Regards,
Jitendra
From India, Mumbai
Dear sir , what is CTC ? how to calculate CTC ? what r the basic process of calculating CTC ? pls give me a formula to calculate ctc ?
From India, New Delhi
From India, New Delhi
Hi Madhavi,
there is no hard and fast rule, each company follow a certain structure. when designing the structure the tax outgo may be kept in mind so that there is a minimal tax outgo for the employee.
generally basic can be fixed upto 60% of gross salary, HRA can be 50% of basic, conveyance can be upto the maximum of tax deductible, and the rest can be apportioned as other allowances or allowances that has a tax benefit.
tc
From United Arab Emirates, Dubai
there is no hard and fast rule, each company follow a certain structure. when designing the structure the tax outgo may be kept in mind so that there is a minimal tax outgo for the employee.
generally basic can be fixed upto 60% of gross salary, HRA can be 50% of basic, conveyance can be upto the maximum of tax deductible, and the rest can be apportioned as other allowances or allowances that has a tax benefit.
tc
From United Arab Emirates, Dubai
Hai.........
This is Sreelatha...
1. Is the basic salary should 60% of salary or else can we reduse it? if possibility is there to reduse it then up to how much % we can reduse and what is CTC means... How it will use to employer?
2. If registered companies may not have the PF and ESI account, is any problem will occure to the employer, is there any chances to reduse the
contribution of employer in paying the PF to the staff?
From India, Bangalore
This is Sreelatha...
1. Is the basic salary should 60% of salary or else can we reduse it? if possibility is there to reduse it then up to how much % we can reduse and what is CTC means... How it will use to employer?
2. If registered companies may not have the PF and ESI account, is any problem will occure to the employer, is there any chances to reduse the
contribution of employer in paying the PF to the staff?
From India, Bangalore
Sree,
Basic varies from company to company. It is in the range of 35-40% of CTC. The more basic, more advantageous to employees as they will get equivalent contribution of PF from the employer side. Though the PF contribution of employer is also becoming part of CTC, it increases the savings of the employee.
Registered companies should have PF & ESI regn. PF can be capped @ max. of 6500/- of basic for the purpose of contributing towards PF by empoyers.
Pon
From India, Lucknow
Basic varies from company to company. It is in the range of 35-40% of CTC. The more basic, more advantageous to employees as they will get equivalent contribution of PF from the employer side. Though the PF contribution of employer is also becoming part of CTC, it increases the savings of the employee.
Registered companies should have PF & ESI regn. PF can be capped @ max. of 6500/- of basic for the purpose of contributing towards PF by empoyers.
Pon
From India, Lucknow
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary Break Up.xlsx
New Comart Salary Break up-Calculator.z ip