Dear Experts
Please solve my problem relating HR forms . i want prepare one appointment letter to my company employee. Her starting salary is 10000
How much basic salary i have to put on gross?
Basic Pay 5000 (50% on Gross)
HRA 2500 (50% on Basic Pay
Conveyance 1600
Medical 1250
---------
10350
Here Total salary reach extra 10000. if i put Basic salary 40% on gross it s come basic 4000 HRA 2000 Conveyance 1600 and Medical allowance 1250 so total 8850 and include other allowance 1150 total wil be come 10000 . my question is i have put 50 % on basic for some employee and 40% some employee, Is Basic Salary May differ from employee to employee in one Organisation?
From India, Bangalore
1Please solve my problem relating HR forms . i want prepare one appointment letter to my company employee. Her starting salary is 10000
How much basic salary i have to put on gross?
Basic Pay 5000 (50% on Gross)
HRA 2500 (50% on Basic Pay
Conveyance 1600
Medical 1250
---------
10350
Here Total salary reach extra 10000. if i put Basic salary 40% on gross it s come basic 4000 HRA 2000 Conveyance 1600 and Medical allowance 1250 so total 8850 and include other allowance 1150 total wil be come 10000 . my question is i have put 50 % on basic for some employee and 40% some employee, Is Basic Salary May differ from employee to employee in one Organisation?
From India, Bangalore
Basic salary may vary depending on the company policy. But in my opinion you have to adhere to the payment of minimum wages act. This circular is issued by the respective State Governments. The Govt. of Maharashtra revises this wages every six months (Jan & July). In this circular the minimum basic salary and the special allowance payable to the employees is mentioned. HRA would be 5% of the Basic + Special Allowance. Taking this amount of Basic / Special Allowance / HRA the balance amount can be paid as Conveyance Allowance.
From India, Mumbai
From India, Mumbai
total allowance can not exceed 100% of basic,
vise versa, the basic can not be lower than 50% of the gross salary.
balance you can do as per your convenience,
there is no hard and fast rule to pay conveyance of 1600 it is maximum tax free cap limit, you can make it 1250 to accumulate the figure
vise versa, the basic can not be lower than 50% of the gross salary.
balance you can do as per your convenience,
there is no hard and fast rule to pay conveyance of 1600 it is maximum tax free cap limit, you can make it 1250 to accumulate the figure
Dear Vishnu B N,
Greetings!
Salary Structure as follows :-
Gross salary - 10,000/-
Basic - 5000/-
HRA - 2500/-
Conveyance - 500/-
Special Allowance - 750/-
Medical Allowance - 1250/-
You must streamline your company's policy, whether to keep basic as 50% of Gross or 40% of Gross.
Do not create confusions in salary structures.
From India, New Delhi
Greetings!
Salary Structure as follows :-
Gross salary - 10,000/-
Basic - 5000/-
HRA - 2500/-
Conveyance - 500/-
Special Allowance - 750/-
Medical Allowance - 1250/-
You must streamline your company's policy, whether to keep basic as 50% of Gross or 40% of Gross.
Do not create confusions in salary structures.
From India, New Delhi
Hi vishnu,
Your interpretation of calculation is incorrect.
HRA will be 40% of Basic if in non- metro cities and 50% of basic if in metro cities.
Basic can vary between 35 to 50% of Gross. Its upon organization.
Other than basic; HRA; Conveyance; & Medical you may include rest of the amount to Special Allowance and Other Incentives to adjust to CTC.
From India, Hyderabad
Your interpretation of calculation is incorrect.
HRA will be 40% of Basic if in non- metro cities and 50% of basic if in metro cities.
Basic can vary between 35 to 50% of Gross. Its upon organization.
Other than basic; HRA; Conveyance; & Medical you may include rest of the amount to Special Allowance and Other Incentives to adjust to CTC.
From India, Hyderabad
In my opinion the basic salary should not be less than Rs. 6500/- pm as going forward lesser basic will result in problems from PF department. Regarding balance amount you can do as advised above
From India, Thane
From India, Thane
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Salary-Note.doc
SALARY SHEET CALCULATION.xls