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From India, Hyderabad
Hi sandeep, Basic salary will be 40-60% on gross salary. find the attachement enclosed it will be healp full for you. Dhamotharan
From India, Madras

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Dear Sandeep,
An example :
In CTC, Salary Distribution can be
(A) Basic Salary + HRA + DA
(B) Conveyance + Medical + Other / Special Allowance if any
(C) Employers Contribution for PF (12% of Basic)
Employers Contribution for ESIC (4.75% of Gross)
(D) Employees Contribution for PF (12% of Basic)
Employees Contribution for ESIC (1.75% of Gross)
Gross Salary = (A) + (B)
CTC = (A) + (B) + (C)
Net in Hand = (A) + (B) - (D) ...
Salary break up as:
HRA- 30%
Conveyances- 25%
Medical- 10%
Other- 5%....
You can change the elements and values according to your company policies.
And to know more about salary Break up please click here:
https://www.citehr.com/download-list...y+Breakup&subm it=Go
Thanks and Regards
From India, Thiruvananthapuram
Hi Sandeep,
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 40 to 60% of basic.
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope it would help you to prepare the same at your end..
Amit Seth.
From India, Ahmadabad
Thanks friends,
Just I want to know what the rules I have to follow for making pay slip for my orz bcz some are saying Basic must 60% on gross & HRA will be 40 to 50 % on basic .
Just I want Which act (Book) I have to follow .
I am looking foreword for your replay.
Thanks to everybody how ever supporting in this
Thanks & regards,
From India, Hyderabad
Welcome.. :D
Dear Sandeep..
These is no any Act that basic must be 60% of Gross.. it varies and starting level is 30%...
Moreover its the Basic which is a major constituent of Fix part of salary.. and moreover its taxable even.. these days most companies give more concern towards the flexible part of salary.. moreover employee opt it according to their options.. to save taxes...
Amit Seth.
From India, Ahmadabad
Hi Amit!

Thanks for the information your so knowledgeble and helpful.

Can you advice me on the following.

The employees who completes 6 months in an organisation,it is compulsory to serve one month notice if they want to resigned.

In my organisation if an employee resign the organization,the employee need to serve one month notice period and they can adjust their 10 days unavail leave to serve the notice period.

When we disbursed their last salary we give them 20 days salary not total 30 days salary,this is a standard practice in my company.

Last month one of our employee resigned,we gave her 20 days salary and ask her to sign full n final settlement letter.

She denied to sign the letter. and written a mail stating that,

Since I had furnished you with resignation well in advance I entitle to get the full salary for the notice period including notice days as per the LABOUR POLICY. I was informed by your HR itself that, they shall relieve me 10 days before as I have that many P.L' balance.

I shall not sign the FNF settlement papers till I get reply on this mail.

Please advice me on the same and help me out.


Trupti :P
From India, Pune
Hi Trupti,
Thank you such a wonderful appreciation... :oops:
See... it is in the practice that one may adjust his/her available leave with the Notice period but that must be approved by his senior..
But we can't force anyone to avail those leaves instead of serving complete notice period, even if he is ready to serve.. This is against the system, you may ask the employee that you have these number of leaves in your account.. so if you want to avail those, may avail to complete your notice period..
So, if it is not mentioned in your HR policy, then better ask her to complete her notice period and encash her leaves at the time of Full & Final settlement...
Amit Seth.
From India, Ahmadabad
Hi Amit!
Thank you so much ,you are so wonderful you solve my query... :lol:
Also i would like to know whether there is any labour law or policy as stated by the employee in regards to Salary payments of resignee.
Trupti :P
From India, Pune
Hi Trupti,
You are always welcome.. :D .. its all my pleasure that i could help you..
See.. it is very clear that you must clear all the accounts of Resigned employees.. otherwise during audit, question may be raised...
Amit Seth.
From India, Ahmadabad
Hai Friends,
I'm working in Electronic media as a HR Executive. can anybody pls. provide the salary break up as per Journalist Act for Journalist and Non - Journalist. or pls. prefer any website :?: .
From India, Hyderabad
As far as salary breakup is concern the simplest breakup of any gross salary can be:
Basic= 2/3 of gross
House Rent= 40% result of 2/3
Utilities= Rest of all
Example: Gross 10,000/-
Basic= 6,667/-
House Rent= 2,667/-
Athar Hashmi

Hai Amith,
Is it necessary to break the salary like 30% basic, 30% HRA, 25% conveyance and remaining as other allowances?
In our company (IT) we are not doing in that way. In all the companies I worked they will break up the salary with low basic. Because the PF deduction will be based on the basic right? So they will give very low basic. Here at my present company we are not deducting any PF or ESI because our total strength is not 20. But we provide nominal basic and the allowances will be high compare to basic. If there is any rule then we also have to follow that. So let me know that is there any rule as mentioned above 30%, 30%, 25% and balance?
From India, Madras
Yes Vasanthi, you are very true..
Most of the companies do keep their basic low, but HRA approx 50% to help in taxes.. and allowance would be high...
Actually it works in terms of more take home salary...
Amit Seth.
From India, Ahmadabad
I am working as an HR executive.I never dealt with the salary issues.Now I am looking for a change in my job. It may happen that in the new comapny I may be asked for the issues in the salary ,how salary was maintained in the last company? etc. , because I am looking for a change in a generic profile .So can you send me some data,some information and other necessary matter for the same which will help me in the new company to deal if I will be asked to do it on my own without any body's help and guidance.
Looking forward forward for your help and advice.
Anupriya Bhattacharya
From India, Pune
Hi Anupriya,
Its really good that you are showing your interest to learn more in your professional field and its really a good approach to achieve success...
See.. in salary structure preparation you are required to be aware with the basic contents like Basic, HRA, CCA, PF, ESI, Medical Reimbursement..
Because rest components varies from company to company...
Some companies pay educational allowance while some not.. likewise different components been adopted by different companies..
So.. have a basic information with salary structure.. it is also required while calculating salary for a month.. n during full & final settlement as well... Go through the structure once again n if get any confusion feel free to ask..
Amit Seth.
From India, Ahmadabad
Hi Sandeep, Below I have attached a detailed COMPENSATION RULES AND DESIGN GUIDELINES doc. Please refer to it and let me know if you found it useful. Thank you! Regards Sanghamitra

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Here is some inputs
Basic : 50 % of Gross
HRA : 40% of Basic
Conveyence: 800 Max
Medical reimbursement : 1250 Max
vehicle Maint: 12000 Max
personal pay/ variable pay: rest amounts.
others include Co's contribution to PF, Gratuity( 5% )Superanuation (15% of basic with lock in period) contribution, bonus/ exgrtia etc
From India, Bangalore
Dear Sandeep Basic should be in between 40 to 60% of basic and HRA will be fixed at 40 to 50% on basic and accordingly other allowances are to be fixed. Regards L.Kumar
From India, Madras
Hi Can you explain bal.Variable 10% From Basic . I have confuses in this reg. With regards V.Sasikumar
From India, Coimbatore
Thanx for your appreciation.Can u help me out in telling me the basic structures of salary issues.
is there any topic in HR book or are there any topics which should be read to make oneself aware about this important subject???
Anupriya Bhattacharya
From India, Pune
Hi Anupriya..
Most welcome...
See.. if you go through my post, you will find a very simple salary structure been prepared there.. just arrange them in an excel sheet and play with that as much as you can with the help of excel formulas...
Prepare a number of CTC structure.. it will enhance your skills even..
Amit Seth.
From India, Ahmadabad
Dear Salary break up 70% =basic+HRA+PF (Company contribution) 30% =other Allowance or 60%-40% regards Vibhor
From India, Chandigarh
Dear Amit, Sandeep,
I yet to get the clarification that am I have to break the salary as per your saying that basic 30%, HRA 40%, and rest? Kindly clarify me. Is it a rule I have to follow otherwise it is illegal? Or I can break on my own as per company and employee's benefit? Let me know that at the earliest.
From India, Madras
Hi Vasanthi,
Its not compulsary that you structure like this..
You may structured it at your own keeping in view the employee's benefit..
Like Basic is low, then his PF contribution would be low..
Likewise you may prepare, so that employee's take home salary should be handsome...
Amit Seth.
From India, Ahmadabad
I want to ask you one question that to what extent a person should be computer literate that can help in excelling in HR profession.
How in today's scenario knowledge of SAP -HR can help an HR professional in getting the best brand in the industry.
Waiting for an intelligent reply.
Anupriya Bhattacharya :D
From India, Pune
Hi AnuPriya..

These days Computer literacy is an essential part for HR profession.. Atleast you must have skills to work on MS-Office as well as Internet..

> Everyday you have to make reports and every report can't be made manually in a specified period of time..

> To impart Training or to present something you are required to prepare PPTs..

> To prepare database of employees you are required to be good in Excel..

> To calculate any rate

> To prepare salary structure

> MIS preparation

In short every thing in HR now a days computerised, to work systematic you must be systematic.. and your work style should be smart.. smart in terms of accuracy, in less time and perfection...

Having knowledge of SAP-HR module is an added advantage for an HR professional.. these days so many companies are implementing ERP to make their system centralised... in ERP one of the module is HR.. and having working knowledge over HR module provide them extra advantage while recruitment...

BTW what does it mean [Waiting for an intelligent reply.]... :roll: :roll: :roll:

Anyways.. hope it would be useful information for you..


Amit Seth.
From India, Ahmadabad
That was an perfect Salary Break up to understand for common people. Excellent job. Keep it up Regards DVD
From United States, New York

I am Dhara, working as Sr. HR at IT Company. Right now we have not salary breck-up. i would like to introduce it. But I havenít too much legal knowledge of salary break-up. Please tell me appropriate book on it which will be guide me.
From India, Mumbai
Dear All,,,,
I still need some more clarifications on SALARY BREAK UP because in my org we currently have :-
Basic - 50% of Gross
CTC - 25% of basic
Medical - 1250
Conveyance - 800
Misc - Rest amount
And our Account dept has proposed a new one, which is :-
Basic - 60% of Gross
HRA - 30 % of Gross
Medical - 5% of Gross
Conveyance - 5% of Gross..
I don think this breakup is good...
Please advice ASAP..
Kanchan (HR) :icon1:

From India, Gurgaon
Hi Gopi,,,, Actually i m lookin for a good salary break up which can serve the purpose of both High as well as low salary employees.... What is d structure in ur Org??? Regards Kanchan
From India, Gurgaon
Hi Amit, as you said Basic is ofcourse taxable. However HRA is calculated on basis of the Basic, right? This is not taxable (correct me if I am wrong).
Therefore my question is:
1. what would be the optimal way to allocate as Basic? Additionally............
2. What is LTA? how it is calculated, I mean what percentage of Basic can be allocated as LTA? Is it tax deductible?
3. Does the PF contribution, which is (884.65 + 780 as per "proposed_breakup_157.xls") fall within the taxable income?
Can anybody please answer those questions?
Thanks and regards,
From India, Hyderabad
What will be the final amount that i'll be getting in hand??
Components :
Fixed Per Annum(Rs.)
Basic 144000
Choice Pay 337796
Project Allowance *72000
Performance Linked Incentive (PLI)** 44000
PF 17280
Gratuity 6924
* Project Allowance is paid only when posted at sites.
** Performance linked incentive (PLI) is annually paid on the basis of performance.
Assume that i'm posted at site and getting 25000 as PLI.
From India, Kochi
Thanks. Its really helpful. With this I would to like ask one question. we have 12% deduction for PF out of which 8.33% is pension fund & only 3.67% if PF. and when we get the PF Balance online its just the smaller part which is sent as sms. so, how do the candidate get his pension fund part when he applies for the PF Withdrawal??
From India, Ahmadabad
Please find attached Salary breakup used in our company for your reference only.
From India

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File Type: xls CTC Chart.xls (26.0 KB, 160 views)

Hi, Will request to guide me on preparing salary structure for my company employees. We have only PT as deduction. Regards, Raksha Koul

Hi, sandeep what will be ideal salary structure according to law and what should be a minimum basic.
From India, Ahmedabad
hi can any one send me the salary breakup for Rs.10,000/- as Bs + Da + Hra + Specicall Allow. please revert rgs vijayan
From India, Thrissur
i have 20000 per month salary pleas calculate TDS, allowance and conveyance
From India, Bengaluru

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