Hi Professionals,

We are manufacturing Industry having <100 employees, running the show for 12 years, we are slowly upgrading to the Compliance management as a process we like to restructure our payslip for our employees.

Our current payslip breakup as below

Salary for Month (CTC)


1.Basic & DA = CTC* 55%

2.HRA = CTC * 25%

3.Medical All = CTC * 10%

4.Travelling All = CTC * 5%

5.Uniform All = CTC * 3%

6.Other All = CTC * 2%

By which the Gross = 1+2+3+4+5+6 = CTC


1. PF = Gross * 12%

2. Prof Tax = as Per SOP

3. TDS = as Per SOP

Net Pay = Gross - Deductions

as there are multiple threads for PF & ESI compliance, we required your guidance to setup the payslip accurate with compliance. Can some one help us to how the Break up should set.

1. Does Basic & DA can be a single item with 55% of CTC or is there any norms for Basic ?

2. Does PF can be deduction from Basic alone( to the slab of 15000) or it has to be calculated from considering other earning ?

3. Is ESI is eligible only for employee who's gross is < 15000 ? does ESI is Mandatory ?

4. Can we provide Medical and ESI for same employee ?

From India, Chennai

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