Salary Structure Breakup Creation - CiteHR
Sr. Manager Hr/admin
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Dear Seniors
Please let me know, ON what basis the Salary Structure has been created?. if there is any act is there to do the Salary Structure breakups and its % on Salary.
expecting your reply for Need guidance in this.

Hi Mr. Rajini
Salary structure is been created to in consideration of Tax exemption. There are no any standard structure. But generally it is prepared as
Basic = 50% on Gross
HRA = 60% on Basic
Conveyance Allowance = 800/-
Medical Allowance = 1250/-
remaining as Spl Allowance

HI Rajani,
you can have the CTC structure under the following heads
Basic : 40 to 50% of basic PF company contro
H R A : 5% to 40% or 50% of basic ESI - Yes or No
Conveyance : 800 Professional Tax
Personal Allowances Bonus
Medical allowances :1250 Mobile
Vehicle maintenance Others
LTA Income Tax (pm)

Dear jeevarathnam
Thanks for your Reply. !!!!
Please let me know that, how the % was derived, it was upto our own decision or is any thumb rule is there?. And is it common for all states or not.
Thanks 'n Regards

Those % are based on our own decision. These is no any thumb rule. It is just to save employee Tax :)
Dear Sir,
There is no clear cut policy of salary breakup.
Individual Managements will evlue a policy according to the industry type.
some Industries will follw 60% and 40% as Basic and other Allowances. Others may be 40% and 60%
as per the decision of management. No hard and fast fule.
LL.HR.IR Consultant,

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