What is CCA & VPA Allowances in Salary Structure - CiteHR
Manojkamble
Sr. Hr Executive
+1 Other

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Dear all seniors,
You are requested to help me out to describe the term CCA allowance and VPA allowance in salary structure.
I am totally unaware with its execution and effectiveness.
Following is my personal salary structure. What percentage my HR using to make my salary slip.
Basic salary : 5400
HRA : 2160 (40% of Basics)
VPA Allw. : 1495 ( ??? )
CCA : 810 ( ???? )
uniform alw : 810 ( ????)
conveyance alw : 1600 ( ???? )
chidren alw :500 ( ???? )

Gross Salary : 12775
Deductions :
PF - 648 (5400*12%)
ESI - 224 (12775* 1.75%)
total deduction : 872
Your prompt reply will be highly appreciated.
Regards
MANAN
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Dear Manan,
CCA is City Compensatory Allowance and VPA will be variable payable allowance which is normally used to adjust the overall excess amount rather than compliance. Such, basic can be more or equal to minimum wages which normally company follows to keep it as same to avoid higher amount of PF contribution. Secondly conveyance maximum tax exempted limit is 1600/- per month only and so on. Thus just to follow statutory norms and meet tax liability amounts salary is been distributed in those columns.
Basic salary : 5400
HRA : 2160 (40% of Basics)
VPA Allw. : 1495 ( ??? )
CCA : 810 ( ???? )
uniform alw : 810 ( ????)
conveyance alw : 1600 ( ???? )
chidren alw :500 ( ???? )
You should have clarified at the time of wage negotiation: My feeling about the short form of VPA= Variable Personal allowance, and CCA should be = City Compensatory allowance. Variable Personal allowance is different from employee to employee, not fixed to the grade. The City Compensatory allowance is paid for extraneous considerations for city life style.
The uniform allowance is for purchase of uniform / keep your dress tidy
The Conveyance Allowance is taxable, if you could not produce conveyance bills / petrol bills / travel bills.
The Children allownace is allowance is admitable under income tax towards children's education (Rs.500 per child up to maximum two children) If you are not married or do not have children, then taxable.
However your gross amount of salary Rs.12775 does not come within the taxable income group.
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