hi , i am new to the Payroll can any one help me to how to calculate the basic payroll and about the percentages for pf,hra,da.
From India, Hyderabad
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3From India, Hyderabad
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In the payroll system, salary has different components like basic, HRA, travel allowance, and other special allowances.
- Basic: 60% of gross for metro cities, whereas 40% for non-metro cities.
- HRA: 50% of basic.
- Travel allowance: Fixed at $800.
- Other special allowance: It is an adjusting figure of all, i.e., (gross - basic - HRA - TA = special allowance).
For PF deduction for the employer, it is 13.61%, including administration charges (12% PF + 1.61% admin charges). The ceiling limit is up to $15,000, and the basic should not be less than minimum wages.
Thanks,
Neetu Bisht
From India, New Delhi
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- Basic: 60% of gross for metro cities, whereas 40% for non-metro cities.
- HRA: 50% of basic.
- Travel allowance: Fixed at $800.
- Other special allowance: It is an adjusting figure of all, i.e., (gross - basic - HRA - TA = special allowance).
For PF deduction for the employer, it is 13.61%, including administration charges (12% PF + 1.61% admin charges). The ceiling limit is up to $15,000, and the basic should not be less than minimum wages.
Thanks,
Neetu Bisht
From India, New Delhi
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Dear Neetu,
For the last financial year, I had created 3 components for salary, i.e., Basic, DA, and vehicle allowance. Therefore, the PF is deducted on Basic + DA. However, in the future, I want to change this criteria as this leads to heavy PF deduction. Can we change the components for existing and new employees?
Thanks,
Richa
From India, Kota
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For the last financial year, I had created 3 components for salary, i.e., Basic, DA, and vehicle allowance. Therefore, the PF is deducted on Basic + DA. However, in the future, I want to change this criteria as this leads to heavy PF deduction. Can we change the components for existing and new employees?
Thanks,
Richa
From India, Kota
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Dear Sunkara,
In payroll, you can bifurcate your gross salary by using the following percentages:
Basic - 60%
HRA - 30% (HRA is generally half of the basic)
Conveyance Allowance - 800/- Rs (up to 800 is nontaxable)
Special Allowance - you have to adjust the remaining
For example, if your GROSS is 10000/-RS, the breakdown would be as follows:
Basic - 6000/-
HRA - 3000/-
Conveyance Allowance - 800/-
Special Allowance - 200/-
I hope this helps you understand the salary bifurcation process. Let me know if you have any questions.
Best regards,
[Your Name]
From India, Vadodara
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In payroll, you can bifurcate your gross salary by using the following percentages:
Basic - 60%
HRA - 30% (HRA is generally half of the basic)
Conveyance Allowance - 800/- Rs (up to 800 is nontaxable)
Special Allowance - you have to adjust the remaining
For example, if your GROSS is 10000/-RS, the breakdown would be as follows:
Basic - 6000/-
HRA - 3000/-
Conveyance Allowance - 800/-
Special Allowance - 200/-
I hope this helps you understand the salary bifurcation process. Let me know if you have any questions.
Best regards,
[Your Name]
From India, Vadodara
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one workman working as a helper category under contract labour Act1970, and central rule 1971 under chhattisgarh minimum wages (central) it is possible to pay his basic salary Rs.15000 please confirm
From India
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From India
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Please let me know if we can change the DA amount session wise or it remains fixed .
From India, Kota
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From India, Kota
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Hi all,
Payroll is nothing but the salary calculation. The benefits of every allowances includes inside the payroll calculation. The percentage rate gets differed for certain allowances.
Listen to this audio-visual which is presented by the expert Mr. Ramesh Dayalan Associate Vice President — Implementation and Compliance Services @ ADP India
Designing a Simple Compensation Structure - On-Demand Webinars - ADP India
Hope you get a clear idea about how to calculate pf, hra, da from basic pay..!!
If you need further clarification about any other topic or updates, contact me through mail:
Thanks,
Stella :)
From India, Chennai
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Payroll is nothing but the salary calculation. The benefits of every allowances includes inside the payroll calculation. The percentage rate gets differed for certain allowances.
Listen to this audio-visual which is presented by the expert Mr. Ramesh Dayalan Associate Vice President — Implementation and Compliance Services @ ADP India
Designing a Simple Compensation Structure - On-Demand Webinars - ADP India
Hope you get a clear idea about how to calculate pf, hra, da from basic pay..!!
If you need further clarification about any other topic or updates, contact me through mail:
Thanks,
Stella :)
From India, Chennai
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Members,
In addition to what other respected members have suggested:
Basic: 60% of gross (metro: non-metro)
HRA: 20 to 40% of Basic
Transport: 800
Education: 200 (100 for each child, max. for two children)
Medical: 1250 (provided supported document for tax exemption, max. limit 15000)
Uniform: XXX (for the professionals who used to go out for business meetings)
Special: XXX
For example:
Gross is 20000 per month. Location is non-metro.
Basic: 8000
HRA: 3200
Transport: 800
Medical: 1250
Uniform: 2250
Special: 4500
Hope this helps.
From India, Ahmadabad
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In addition to what other respected members have suggested:
Basic: 60% of gross (metro: non-metro)
HRA: 20 to 40% of Basic
Transport: 800
Education: 200 (100 for each child, max. for two children)
Medical: 1250 (provided supported document for tax exemption, max. limit 15000)
Uniform: XXX (for the professionals who used to go out for business meetings)
Special: XXX
For example:
Gross is 20000 per month. Location is non-metro.
Basic: 8000
HRA: 3200
Transport: 800
Medical: 1250
Uniform: 2250
Special: 4500
Hope this helps.
From India, Ahmadabad
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Hi Sankara,
Most of the members have provided answers to your query. I hope you will benefit from it. Here are some additional insights from my side based on my understanding.
Conventionally, you will find basics ranging from 30% to 60% in most private concerns. However, your decision should be guided by the implications of that percentage and your company policies.
Implications:
- The higher the basic, the higher the cost to the company in terms of contributions to statutory compliance. Therefore, based on whether your company is welfare-driven or cost-driven, you should intelligently choose the right percentage.
- Secondly, although contributions to EPF/ESIC are for the betterment of employees, the benefits realized are typically long-term (e.g., after retirement or voluntary withdrawal after a period). The choice of the basic amount will impact the contributions from the workers' pockets. For example, a highly-paid employee may not feel a significant impact on their cash in hand due to contributions, whereas a low-paid employee may be more concerned about meeting monthly expenses rather than future benefits. Worker satisfaction is a crucial consideration.
Another factor to consider is the type of industry you are in and the prevailing labor turnover. For instance, in a BPO with high labor turnover, opting for a lower basic amount could keep both employees and employers satisfied and potentially address attrition. Conversely, in traditional industries where employees tend to stay long-term, a higher basic amount may be more suitable.
Regards,
Manish
From India
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Most of the members have provided answers to your query. I hope you will benefit from it. Here are some additional insights from my side based on my understanding.
Conventionally, you will find basics ranging from 30% to 60% in most private concerns. However, your decision should be guided by the implications of that percentage and your company policies.
Implications:
- The higher the basic, the higher the cost to the company in terms of contributions to statutory compliance. Therefore, based on whether your company is welfare-driven or cost-driven, you should intelligently choose the right percentage.
- Secondly, although contributions to EPF/ESIC are for the betterment of employees, the benefits realized are typically long-term (e.g., after retirement or voluntary withdrawal after a period). The choice of the basic amount will impact the contributions from the workers' pockets. For example, a highly-paid employee may not feel a significant impact on their cash in hand due to contributions, whereas a low-paid employee may be more concerned about meeting monthly expenses rather than future benefits. Worker satisfaction is a crucial consideration.
Another factor to consider is the type of industry you are in and the prevailing labor turnover. For instance, in a BPO with high labor turnover, opting for a lower basic amount could keep both employees and employers satisfied and potentially address attrition. Conversely, in traditional industries where employees tend to stay long-term, a higher basic amount may be more suitable.
Regards,
Manish
From India
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Hi Sunkara,
There are many good resources available for calculating basic payroll, and they are absolutely free! You should give them a try.
Refer: Payroll Management Software, Paywhiz By Sinewave
From India, Nagpur
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There are many good resources available for calculating basic payroll, and they are absolutely free! You should give them a try.
Refer: Payroll Management Software, Paywhiz By Sinewave
From India, Nagpur
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HRDGURU :: Not A Human Resource Professional? Grab An HR Internship :: Human Resource Management
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Thank you for sharing the link. Here is the corrected version:
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From India, Chandigarh
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Thank you for sharing the link. Here is the corrected version:
HRDGURU :: Not A Human Resource Professional? Grab An HR Internship :: Human Resource Management
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Thank you for sharing the link. Here is the corrected version:
HRDGURU :: Not A Human Resource Professional? Grab An HR Internship :: Human Resource Management
From India, Chandigarh
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls