Dear Seniors, please advise on the following points:
Consideration of Gross Salary Components
Is it okay if we consider 40% of the gross salary and no DA? Is it compulsory to give both, i.e., BASIC + DA separately?
Percentage Allocation of BASIC + DA
In case we have to consider both BASIC + DA, what should be the percentage of both with respect to the total gross salary?
Nature of DA for Staff
If DA is to be considered for staff, can this be fixed or fluctuating as is being considered for wages, which is fluctuating?
Please reply.
Thanks & Regards,
From India, Pune
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15Consideration of Gross Salary Components
Is it okay if we consider 40% of the gross salary and no DA? Is it compulsory to give both, i.e., BASIC + DA separately?
Percentage Allocation of BASIC + DA
In case we have to consider both BASIC + DA, what should be the percentage of both with respect to the total gross salary?
Nature of DA for Staff
If DA is to be considered for staff, can this be fixed or fluctuating as is being considered for wages, which is fluctuating?
Please reply.
Thanks & Regards,
From India, Pune
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Let me explain our current practice. We categorize our employees into two categories: staff and workers. For staff, we don't include the component DA, but we provide conveyance. For workers, we divide the salary into four components, including BASIC, DA, HRA, and one allowance. Here, we set the basic salary between 45% to 55% after subtracting the DA. Additionally, we allocate 20% of the basic as HRA, with the rest allocated to allowances to determine the gross salary.
Example Salary Breakdown
For example, if a worker's salary is $5000 and the current DA is $1000, the breakdown for that employee would be as follows:
- Basic: $2200
- HRA: $440
- Allowance: $1360
- DA: $1000
Since the minimum wage gazette and DA payable gazette are in force, you can incorporate both components into the pay structure to avoid any confusion regarding minimum wages.
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Example Salary Breakdown
For example, if a worker's salary is $5000 and the current DA is $1000, the breakdown for that employee would be as follows:
- Basic: $2200
- HRA: $440
- Allowance: $1360
- DA: $1000
Since the minimum wage gazette and DA payable gazette are in force, you can incorporate both components into the pay structure to avoid any confusion regarding minimum wages.
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SALARY SHEET CALCULATION.xls
Salary calculation.doc