Management Coach I Hr Strategist I Career
Asso.prof.(commerce & Management) Pg
Now as the salary is below 15k and 30 employees are there hence PF and ESI are both applicable.
Basic= 50% of gross.
HRA=40% of basic for non metro
50% of basic for metro
Special= Rest amount of gross.
Deduction from salary.
PF=12% of Basic.
ESI=1.75% of gross.
Pls. Note: The basic should be at least equal to minimum wage in case any employee's salary is low for the purpose of PF deduction as PF should be deducted on minimum wages at least not on any amount below that.
You can adjust special allowance to reach the gross amount of 15k.
This is a very basic structure which you may follow.
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You have mentioned that all employees are drawing salary less than 15000.
Since all employees salary is less than 15000/-. You have two following ways to bifurcate the salary:
Option 1 : For salary from 10,000 to 14999 Keep their basic as per Minimum wages of your State and n HRA @40 % of basic and balance in other allowance. Accordingly you can deduct PF on Basic and DA.
Example: Basic : 7500
HRA @ 40% : 3000
Rest in other allownce
Deduct EPF @12% on basic
Option II : For Salary from 7000 to 9999, you keep basic and DA as per minimum wage and rest in allowance.
Example: Basic as per minimum wages
Rest in other allowances
Deduct EPF @12 % on MW
In both options TDS is not applicable
If any employee drawing more than 15000
Keep Basic 52% of CTC
HRA 40% of basic
Children education: 200
rest in other allownce
Keep in mind that while fixing the
19th December 2015 From India, Vadodara