Dear seniors,
Has any standard percentage fixed for salary heads bifurcations in C.T.C ( i.e Basic, H.R.A, Conveyance, Education Allowance, Medical Allowance, Other Allowance, etc.) in industrial laws ? If have any body please share to me ASAP.
Todays Writing Instruments Ltd.
Dadra. U.T of Dadra & Nagar Haveli.

From India, Silvassa
Hey all,
Even I have the same query since long, but has never got a satisfactory reply on it. Can someone really help as to how to bifurcate the salary under different heads, or may be if someone can suggest a reading material on the same.
Best Regards,

From India, Indore
Dear Deepak &Kavita,

There is no specific guideline in any law as on date to bifurcate CTC in to different pockets. It needs to understand the "Remuneration & Benefit Management" in details. Let me try to explain you the subject in my own way. First of all the term CTC has not mentioned in any labour laws. But it is one of the essential term to day used by the majority organization to control employee cost properly and it varies from organisation to organization. Let us understand the way we arrive at CTC.

First of all there is monthly gross salary which consist of Basic, DA, HRA and many other allowances (CCA, Medical, CEA etc.). Then Annual components of remuneration if any -Bonus, LTA, Furnishing,Yearly Incentive, Club Membership, Co's Car etc. etc. at different level of employees within the organization. Then come Statutory cost - employer's contribution to PF, ESI; Gratuity and there are organisations who are also providing facility for higher level employees extra legal - Pension(mostly with LIC). If we add back all above we will arrive at CTC. There are organizations who are considering yearly leave encashment, canteen subsidy also as a part of CTC.

Now both of you are interested to know specific % of different component. To my opinion it may be different for different category of employees within the organization.

For lowest category - To take care about Minimum wages first.

For monthly gross salary up to 30,000/- Basic may be 50% of monthly gross ( usually suggest by the PF inspectors).

Above 15000/- basic per month , Basic may be tapper off i.e. higher the monthly gross the % of Basic may vary between <50% to >= 30% depending on number of different category of employees within the organisation.

More the monthly gross and CTC , more income tax friendly pocket should be in the structure ( LTA, Medical, Conveyance, CEA etc.).

For developing Remuneration policy of any organisation one must keep in mind many things - Minimum wage, PF, ESI, Bonus, Gratuity, Income Tax, level of the employee etc. very carefully.

Trust this may give you some support to understand the subject.

Thanks & Regards,

S. K. Bandyopadhyay, West Bengal

USD HR Solutions,

+91 98310 81531

From India, New Delhi
I want salary structure for my employee so please send me latest salary structure for 2019-20
changes as per new rule in PF.
Expect HAR all Allowance count as Basic Salary and come under PF Deduction?

From India, Mumbai

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