Tsivasankaran
Consultant
Amitmhrm
Hr Practices
JITENDRAPATEL
Asst Teacher
Pradip2b
Service
Kundra
Hr Executive

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Hi,
Can anyone guide me for the salary structure breakups as in what should be the % wise breakup of Basic, HRA, Conv, uniform LTA, medical allow etc for service staff, executives & HOD.
It is quiet urgent
Regards,
Pradeep

In general, the basic salary is 40 % of the total and all the other salary components (like CCA, HRA, LTA, etc) are % of basic salary. For example,
Total Salary - Rs 10000
Basic will be - Rs 4000 (40 % of total salary)
HRA - Rs 1600 (40 % of Basic)
CCA - Rs 1600 (40 % of Basic)
LTA - Rs 1600 (40 % of Basic)
Education Allowance - Rs 800 (20 % of Basic)
and so on.....

Thanks for the reply. can u help me out with the heads which are generally used in hospitality business & any such heads which can be given to HOD & is it applicable to FBT
Hi Pradeep,

The components of the salary break up may be as below, you can prepare it at the suitability of your own. HRA would be 40 or 50% of basic.

Basic

HRA 40 - 50% is exempted from Taxes, depends on class of city

CCA - 825/- is exempted from tax

Other Allowance

Mobile Reimbursement

Medical Reimbursement of 1250/month is exempted from tax

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.

Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.

Hope it must helped you to clear your queries up to some extent.

Regards,

Amit Seth.

Hello
I have seen Amits postings on this subject often. I do agree with him
But I will also give another way of looking at formulating this policy.
1. 40% shall go towards Basic
2. 30% will go towards monthly perks/benefits/allowances to suit Income Tax requirements
3. 30% shall be assigned towards annual benefits like LTA Bonus, Performance pay Medical etc.
When we take CTC as 100, then apply above principle. It works
Ideally we can look at 33% under each head.
Siva

here is your solution with attachment enjoy it jitendra patel

Attached Files
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File Type: xls jitendra_salary_sheet_642.xls (22.0 KB, 784 views)

Thanks Siva n Nidhi.. :D
Yes Siva, very true can prepare the break-up in that standard as well.. here i have defined the components and their level of exemption from taxes.. Our friends may prepare the same at their convenience..
Regards,
Amit Seth.

Hello Amit
Information you had provided seems useful...
I am undertaking a project related to development of HR systems in a company... I need some guidance....
Can you please introduce yourself.
Thanks
Siddarth

Good Afternoon, Senior members i also need some help in this regard i have to re desigh salary structure in a manner that the fringe benefit tax paid by the company reduces.
I am a fresher MBA graduate and become HR Manager of a newly form Firm.......When I join this site I got the guidancs from many of you people......

For that I would like to Tkank all you People.

Thanking you..........
aarti somwanshi

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