Salary Break Ups For Construction Industry - CiteHR
Sr. Manager Hr/admin
Admn/statutory Compliance
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i joined in a construction company as a HR Executive and we are on the process of grading and salary fixation. i'm confused with salary break ups (% of Basic and HRA), for marketing how we have to prepare a salary break ups. Construction industry has any separate salary break up?????? if has please share......
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There is no separate breakups for marketing and others. If need you shall use different formats.
All the breakups are just to reduce Tax burdens & there no any strict rule
You shall use the below format for your reference
Basic 50% on Gross (Make sure as basic is not lesser that Minimum wages as per karnataka minimum wages act)
HRA 40% on Basic
Conveyance Allowance as 800/- PM
Medical Allowance as 1250/-
balance as Special Allowance or Other allowance
Thank you for your quick response. but I'm sorry currently I'm working in Coimbatore (Tamil Nadu)so please help me out in this.And Coimbatore is not Metro city.
Thanks & Regards
Sowmiya M
Dear sir,
I also need clarification on wages. we are construction co. having sub contractors, who give salary @ rs. 187 unskilled but to some workers show rs. 6600/- to avoid PF. Can they do so? coz 6600/- is total and when they are paying monthly is it mandatory to split this amout viz. basic (min wage 4850 in gurgaon) + HRA + conveyance ?
pls advise.
sanjeev chauhan
Sr. Executive compliance
Dear Sanjeev,
If Basic & DA is more than Rs. 6500/-, no need to pay PF, if contractor is doing so, i don't think there will be a problem. But make sure that contractor is not charging PF from employeer.
Best Regards
I'm still confused with framing salary structure for construction industry(Tamil Nadu Gov Act) , like % of basic, % of HRA and to calculate the educational allowance, conveyance and other allowances.
Dear Praveen,
thanks !! actually contractor is showing basic 6600/- monthly and calculation of wages is on actual no. of days i.e. for 28 days salary given 5961/- no PF deduction but ESIC 105/- deducted. Is this correct ? other case is salary component shows basic 7000/- + HRA 1000/- no PF deduction. Can he show salary components only basic + hra ?
pls advise?
thanks & regards,
dear mr. jeevarathnam,
could you pls clarify my query posted here. also ESIC should be deducted @ 1.75% on gross monthly or actual wages paid by contractor to worker coz he has deducted on actual wages paid.
looking for support from u as well.
sanjeev chauhan
I'm still confused with framing salary structure for construction industry(Tamil Nadu Gov Act) , like % of basic, % of HRA and to calculate the educational allowance, conveyance and other allowances.
Hi everybody...............
We are on the process of salary re - structuring.We would like to add PF and ESI.I'm confused with salary break ups (% of Basic, HRA, Education allowance, conveyance, other allowances), How we have to prepare a salary break ups for Construction industry(Tamil Nadu)???? Please help me out in this regards and share your valuable information for below break ups......
Basic 40 to 50% on Gross salary
HRA is on Basic 40 to 50%
Convince 800 p.m ( above 800 taxable) 800
Medical allowance 1250 (above 1250 taxable) 1250
Special allowance - difference amount of Gross salary
You can add other allowances also as per your company's rule
Is anything need to add in this?????? Please give me your valuable suggestions....
Sowmiya M
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