Salary Break Up For Our Company - Xls Download

Hi,
Basic Salary Seems to be very Low.
Basic (Gross-500)1.55 = 4839
HRA (45% of Basic) = 2177
Convayence = 500 Fixed
Utility
Mobile+Internet (10 % of Basic) = 484
Gross =8000

EPF, ESIC registrations are a must after you have 10 employees in your company.
Profession Tax and Labour Welfare fund is applicable and you have to register and start deducting from Employee's salary. Employers' contribution is payable and returns have to be filed once in a year.

Hi Amit/Madhumita
what ever you have mentioned with regarding to salarystructure is great.
i just would like to know as to whether if company's turnover crosses certain limit(what they have mentioned at the time of registration/income tax) then don't you think so that company has to deduct the PF & provide bonus/incentive basing on the company's profit ?
do let me know the response from you both.

Turnover has nothing to do with EPF/ ESIC/ LWF/ PT.
It is the number of employees that counts.
If turnover crosses 40 lakh Rs. per annum, you may have to deduct tax on behalf of your employees.
Siva

Hi Hazaidi,
As you said that Basic seems to be low.. But it depends on the gross/month. It should be approx 35 - 40% of the gross..
Regards,
Amit Seth.

Hi Siva,
As i discussed earlier there is no point to contribute PF. As any newly set-up organisation is exempted from the coverage upto 3 yrs. Moreover the number of employee required is 20 without the aid of power for the same.
And he has already mentioned that its a newly setup organisation, so PF coverage is not required. And even ESI is also not required as the number of employee is 8 only.
Regards,
Amit Seth.

Hi Pawan,
Deduction of PF doesn't depend over the company profits and all. As to deduct PF or to employ PF coverage in any of the organisation the company needs to be 3 yrs old. Regarding bonus it depends on the profit and moreover now a days most of the companies do add the bonus as
Ex- gratia in the CTC.
Regards,
Amit Seth.

Hi mr. Amit,
Iam asif here i was just going through the salary break up and found that you have given the clear explanation of that. i really appreaciate your efforts and thank you for providing that important information. iam a HR fresher and looking forward for the opportunity in the Core HR activities. jz look out of this and and if some thing is found suitable for me kindly let me know.
My email ID is [Login to view]
Thanks & Regards.
Shaik Asif Ali.

Dear Madhu,

This is in reply to your previous email as mentione below.

Could you please me..... we have different slabs for eg gross for some one in the range of 10000 to 15000 and 15001 to 30000 and thereafter.

then we have the slabs for these range of gross salary

as below

betwenn 10000 - 15000 salary

hra is 6500

medicl allowance is 1250

convenyance 800

uninform allowance is 800 pm

as this is entitled for the people with range of salary of 1000 to 15000

what is the person joins in say 13 of the month then how would that effect the hra, medical and conveyance becuase if gross would change as he wod paid only for 18 days so will that effect the other componenets of salary.

Pls advice

Regards

Pooja

Rs. 96,000.00 is Annual salary, thus Rs. 8000.00 is monthly salary. At this level in my opinion PF should be given, but since you have only 8 employees at the moment you can actually do away with this.

The break up, which would be tax beneficial to employees cauld be as follows:

BAsic : 50% of Gross i.e Rs. 4000.00

HRA: 50 % of Basic Rs. 2000.00

Conveyance Allowance Rs. 800.00

Medical Allowance Rs. 1200.00

IN the above mentioned breakup, conveyance allowance and medical allowance is totally exempted upto a maximum of Rs. 800 and Rs 1250 pm, respectively.

On HRA also an employee will get expemtions incase he is staying in a rented accommodation as per the rules.

More than anything else, I would like to add, you may have any structure they will not attract any tax since the threshold limit for tax is Rs. 1,10,000.00 for males and 1,45,000. for ladies.

Regards

Madhumita[/quote]

Satya,
LTA that you may put in gross or better leave it from gross that you may pay on actual. Other allowance is the remaining amount to complete the Gross salary,
what does it mean.
what is the benefit if LTA is not included in Gross.