Hi all..
This is Shravan.. Can some one give me where can i find printed details regarding salary break up rules like what percentage of the salary cab be fixed as basic, what could be the percentage of conveyance.
Regards,
Shravan
From India, Hyderabad
This is Shravan.. Can some one give me where can i find printed details regarding salary break up rules like what percentage of the salary cab be fixed as basic, what could be the percentage of conveyance.
Regards,
Shravan
From India, Hyderabad
Hi, Please find the attached document which may be useful for you. :D Thanks & Regards, Payal
From India, Pune
11From India, Pune
Hello Payal,
You can even add other allowances to factor additional payment.
There are quite few other teminologies that can be used like DVI and special pay for salary higher than allowable brackets for specialized positions.
Companies can also include Gratuity and mediclaim details if they want to.
The one you have provided is the standard format.
Regards
Praveen
From India
You can even add other allowances to factor additional payment.
There are quite few other teminologies that can be used like DVI and special pay for salary higher than allowable brackets for specialized positions.
Companies can also include Gratuity and mediclaim details if they want to.
The one you have provided is the standard format.
Regards
Praveen
From India
Dear All,
Conveyance and Medical reimubrsement is given to the maximum limit allowed as per IT rules that is Rs. 9600 per year towards conveyance and 15000 towards medical reimbursment. This amounts are maximum ones in order to get tax rebate however for both you need to produce receipts and medical bills.
In some companies HRA can go upto 40 % also depending on the Metro you live in.
Companies have their own salary structure. The similarity however can be observed in cases of contribution towards PF, professional tax. Plus in income tax rules, they have mentioned whats the maxi. rebate one gets in a given salary head like the two mentioned above. So the companies generally try to give max. possbile under these heads to help employees save tax.
Regards
Priya
From India, Mumbai
Conveyance and Medical reimubrsement is given to the maximum limit allowed as per IT rules that is Rs. 9600 per year towards conveyance and 15000 towards medical reimbursment. This amounts are maximum ones in order to get tax rebate however for both you need to produce receipts and medical bills.
In some companies HRA can go upto 40 % also depending on the Metro you live in.
Companies have their own salary structure. The similarity however can be observed in cases of contribution towards PF, professional tax. Plus in income tax rules, they have mentioned whats the maxi. rebate one gets in a given salary head like the two mentioned above. So the companies generally try to give max. possbile under these heads to help employees save tax.
Regards
Priya
From India, Mumbai
Hi Sravan..
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope it must have helped you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope it must have helped you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
I have read all the posts and not got an explanation for - Why have a salary component called Basic ? If it is a statutory requirement how do you decide the basic for any role? Any help is welcome.
From China
From China
Dear Srived,
For Each Industry there is a Minimum wages fixed by the Labour department in different categories as per the nature of work, which includes Basic & Dearness Allowance. (Dearness allowance is half yearly basis, the labour department used issue the notification for revised DA in first week of February & Aug every year)
It is mandatory for every employer to act as per the Minimum wages notifications applicable to his industry and accordingly pay at least the same wages to his employee.
Based on that Basic rate employer can calculate the minimum salary, as there is no such rule for maximum salary, employer can offer any salary to the employee as per the industry standards after considering the Minimum wages factor.
Regards,
Chetan
For Each Industry there is a Minimum wages fixed by the Labour department in different categories as per the nature of work, which includes Basic & Dearness Allowance. (Dearness allowance is half yearly basis, the labour department used issue the notification for revised DA in first week of February & Aug every year)
It is mandatory for every employer to act as per the Minimum wages notifications applicable to his industry and accordingly pay at least the same wages to his employee.
Based on that Basic rate employer can calculate the minimum salary, as there is no such rule for maximum salary, employer can offer any salary to the employee as per the industry standards after considering the Minimum wages factor.
Regards,
Chetan
Dear friends
Any one please clarify is there any rule or guidelines regarding fixing of Basic. Since the most of the DY.Chief inspectors of factories saying the industrial labour departments minimum wage should be taken as Basic wage. This correct or shall the factory can fix the basic and in total they cover the minimum wage guided by the labour dept.
E.G. Minimum wage for the tailoring industry in TN for Helpers is Rs. 1825 + DA 741 total to Rs. 2566.00. weather the factory to fix the Basic same as Rs 1825 + DA 741 or they can fix the Basic as RS.1200 + DA 741 + HRA 700 total as RS2641 which is more than the Labour dept fixed total of RS 2566.
Please clarify with any of reliable rule or guidelines.
Regards
Subiah. G
From India, Madras
Any one please clarify is there any rule or guidelines regarding fixing of Basic. Since the most of the DY.Chief inspectors of factories saying the industrial labour departments minimum wage should be taken as Basic wage. This correct or shall the factory can fix the basic and in total they cover the minimum wage guided by the labour dept.
E.G. Minimum wage for the tailoring industry in TN for Helpers is Rs. 1825 + DA 741 total to Rs. 2566.00. weather the factory to fix the Basic same as Rs 1825 + DA 741 or they can fix the Basic as RS.1200 + DA 741 + HRA 700 total as RS2641 which is more than the Labour dept fixed total of RS 2566.
Please clarify with any of reliable rule or guidelines.
Regards
Subiah. G
From India, Madras
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