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what is the percentage of basic of the total CTC. Is there any rule to restrict basic to 50% of CTC. can it be more or less than 50 %.
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Hi , Basic salary is veriable in between 35 % to 40% and also its depend upon the comapny policies. Regards, Maniksing
Hi Anuradha,
All are very true..
It depends on company salary structure, it vary from company to company.
Generally it varies from 35 to 50%... even it might be higher or lower also..
Regards,
Amit Seth.
YOUR PF AND ESIC WILL BE AFFECTED IF YOU INCREASE BASIC .IF YOU ARE WORKING WITH MINIMUM WAGE 3861 FOR UNSKILLED BASIC 1290
DA 1635 .YOU CAN DECIDE BUT IT SHOULD NOT GO BELOW THE RATES I HAVE GIVEN TO YOU
Dear Anuradha,
This depend on the company policy but in the 7A ( PF ) enquiry this issue is arries and after facing this enquiry i have got an idea that the basic salary have to be vary between 35% And 65%
with regards,
Rahul
9822351982
It is right that it varies from company to company, but std as per govt. rules is that of 60% and 50% is quite fair. But less than 50% could be questionable, specially for small companies who do not provide too many benefits to the employees.
Then it also varies on what kind of organization is it? whether a firm or a trust or a ltd company etc...?
Hi Rajdeeb,
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.
Basic salary can vary according to the company rule it is divided into different components that when added should give result 100%
There is no hard and fast rule in fixing the Basic. But it should be reasonable. If the Basic+DA part is around 60% and Allowance part as 40% is normally treated as reasonable by Authorities
P.Nalluchamy
I have an exciting idea for all of us, what we can do is........... lets share everyones' companies salary structure and let us also find a solution on how different co. is using salary structure to save emps' taxes.

I am starting from my input first............

First we decide the CTC of the person would be??

Break up of CTC.

Basic - 40% of ctc

HRA - 50% of basic

Tpt All - (800 if CTC less than 9000, 1000 if ctc less than 15000, 2000 if ctc above 15000)

Medical All - (optional if ESI is paid, else 10% on basic)

Special All - (ctc - pf-esi- bonus - Basic - hra - tpt all - medical all)

____________________

Gross Salary

PF - 12% on basic

ESI - 4.75% on basic (optional, if medical all paid )

Bonus - 10% on basic and limit is upto 500

__________________________

CTC

Net Salary (in hand ) = Gross Sal - PF - ESI (1.75% on basic)

This is the structure used by y co. but we are not giving any think in which emp. can save taxes.

I need suggestion from experts on how to design the salary structure so that emp. can save income tax.

Others, please contribute......./ Share yours co. salary structure, this would be good learning on compensation/ Salary issues.

- Sanjukta
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