Transitioning from HR Recruiter to HR Generalist: How Do You Handle Salary Breakdowns in IT?

Hi All,

I am working as an HR Recruiter in one of the IT companies. I want to shift my career path into HR Generalist. I recently attended an interview for the position of HR Generalist in a company where the HR was primarily focused on payroll. During the interview, she presented a scenario asking how I would split a salary of 3 lakhs per annum, to which I couldn't provide a satisfactory answer.

Could you please help me understand how salary breakdowns are typically done in the IT industry? Your valuable insights would be greatly appreciated.

Thank you all in advance. I am eagerly waiting for your responses.

Hi! The basic components that every company has are as follows:

- Basic = 50% or 40% of gross
- HRA = 40% or 50% of basic (Depending on Metro & non-metro)
- CCA = 20% of Basic
- Medical = Rs 1250/- per month
- Children Education = Rs 100/- per month (Rs 1200/- per annum)
- Bonus = 8.33% of basic normally (rest depends on the company)
- PF = 12% of basic
- ESI = depending on gross (if applicable)
- Telephone expenses = Rs 750/- per month

The remaining components such as Travelling Allowances, Food Allowance, Petrol Allowances, etc., completely depend on the company.

Chitra

Hi Chitra,

Thank you so much for your valuable reply. As you mentioned, ESI eligibility depends on the gross amount. Could you please clarify what the specific gross amount is that qualifies for claiming ESI?

Thank you.

Regards,
Sridhar

Hi!

If an employee has a gross income of more than 10,100/-, then ESI is not applicable. However, if the gross income is less than that amount, the contributions are as follows: employer = 4.75% and employee = 1.75% on the gross income.

Chitra

Dear Shridhar,

I just wanted to inform you about the contents of the payslip. The percentages vary depending on the type of organization. The components usually include: BASIC, DA, HRA, ESI, EPF, SPECIAL ALLOWANCE, CONVEYANCE, MEDICAL ALLOWANCE, MISCELLANEOUS, BONUS, LOAN/ADVANCE, etc.

Thank you.

Hello, I am Sai. I recently joined the hotel industry as an assistant HR. However, I don't have any idea how to implement the functions or policies. Moreover, my HR manager has left the place as soon as I joined here. He taught me about payrolls, screening, and other things, but I lack practical experience. I really don't know how to implement policies that would help my hotel. Our hotel is new, and its growth is on the lower side. My Managing Director is expecting a lot from me. Please help me out, people.

With regards,
Sai

Hi,

Attached is the salary breakup commonly used by most IT companies. Should you have any further queries, please contact me at [Login to view]. ESI is not applicable in your case. Since you are interested in transitioning into HR Generalist, I advise you to familiarize yourself with the laws related to payroll management.

Best wishes,
Taru

Hi,

Salary split totally depends on org policy. There are companies that hold some amount of annual salary as a variable part of the compensation. In my company, 25% of the CTC will be given based on performance and targets achieved, and the remaining 75% will be divided among the following heads:

- Basic: 40% (Non-metro) or 50% (metro)
- HRA: 50% of basic
- Travel Allowance: $800 per month
- Medical Reimbursement: $1250 per month
- Special Allowance: Balancing figure
- PF: 12% of basic (from both employee and employer)
- ESI: 1.75% of Gross (from employee) and 4.75% of Gross (from employer)

Hope this information helps you. Keep smiling.

Regards,
Neesu

Hi,

As many have said, salary breakdown varies among organizations. In our organization, the gross salary is divided as follows:

Monthly Earnings
- Basic: 35% of monthly gross
- HRA: 50% of Basic
- Conveyance: $800 fixed
- LTA: $1000 for some employees and $1500 for senior employees
- Medical Allowance: $1250 per month
- Research Allowance: varies from $1000 to $5000 depending on the grade
- Food Allowance: optional and provided as Sodexo to willing employees
- Telephone Allowance: varies from $500 to $1000 depending on employee grade
- Special Allowance: a balancing figure calculated as the difference between monthly gross and the sum of all the above components

Monthly Deductions
- PF (Employee's Contribution): 12% of basic
- Professional Tax (Based on Government-approved rate)
- Income Tax (Based on annual income)

CTC comprises of Annual Gross + Medical Allowance + Employer Provident Fund + Performance bonus (Up to 20% of annual gross).

Hope this information helps. Please let me know if further clarification is required.

Cheers,
Sunetra

Hi Abishek,

I want to know how to formulate the roles and responsibilities within an organization at both the macro and micro levels. I am looking for guidance on creating job descriptions that cover these aspects comprehensively.

I am eagerly awaiting your valuable insights on this matter.

Thank you,
Abishek

My suggestion to you would be rather than focussing on Generalistic profile focus on your strength which is Recruitment…Lot of companies are hiring Manager, Sr. Manager, Head, AVP Recruitment and try exploring these possibilities where you can more scope rather than starting from the beginning. There is a lot of demand of Manager Recruitments in IT, BPO, Financials, Insurance, Engineering and other sectors where salary range is also compatible with that of Generalist HR ..so why don't you give it a try…which part of India u are ….

Dear All,

I have read that an employee receiving a gross less than 6500 should receive ESI. More than that depends upon company policy. Can anyone clarify this for me? I read this in a PDF posted only on CHR.

Dear Friend,

Your Salary Structure -
Basic 375000
HRA 1 50000
Conveyance 9600
Medical 15000
Spl all. 153540
PF (Empl) 9360
LTA 37500
Total CTC 750000

Exemptions
Taxable Amt Exempted Amt
Basic 375000
0

HRA
0

Conveyance 0
9600

Medical 0
15000

Spl all. 153540
0

PF (Empl)
9360

LTA
37500 (Only if you claim it once in two years)

Hence Taxable Salary is Rs. 528540. Saving up to 100,000 are exempted, out of which you already claim in PF, i.e., 9360. Now you can have savings up to Rs. 90640 (Savings may include ULIP, Insurance for Self & Spouse, MF, and other elements which give you exemption under 80C, 80CC, 10(10(D)), etc.). Hence Net Taxable Salary 437900. You fall in the 20% tax bracket and the Taxable Amt. is 87580 (p.a.). Tax per Month 7298.333.

Note (If you have taken any housing loan from any bank, then you can save the interest up to Rs. 150,000 as well.)

Now let me know if you want to know anything else pertaining to the captioned matter.

Pramod S. Bhadauriya

Dear all,

With reference to, I would like to have an open discussion on why people from a recruitment background are generally not considered for HR generalist roles.

Thank you.
Mujib

Hello Chitra,
Firstly very nicely you've briefed us about salary process. But I've a query in ESI.
According to your information for ESI “SALARY” should be less than 10,000K.If a person is drawing more than 10K then He will not eligible, If I'm not WRONG Please clear my doubt. Awaiting …

Dear Chitra,

You have provided an excellent explanation. We appreciate such informative posts from senior members with sufficient knowledge.

Friends, please continue posting.

Hi! The basic components that every company typically includes are:
- Basic = 50% or 40% of gross
- HRA = 40% or 50% of basic (Varies based on Metro & non-metro locations)
- CCA = 20% of Basic
- Medical = Rs 1250/- per month
- Children Education = Rs 100/- per month (Rs 1200/- per annum)
- Bonus = 8.33% of basic typically (may vary by company)
- PF = 12% of basic
- ESI = dependent on gross salary (if applicable)
- Telephone expenses = Rs 750/- per month

Other components such as Traveling Allowances, Food Allowance, Petrol Allowances, etc., are entirely at the discretion of the company.

Chitra

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I have corrected the spelling, grammar, and punctuation errors in the provided text. I have also ensured proper paragraph formatting and preserved the original meaning and tone of the message. Let me know if you need further assistance.

I have one more point. ESI/EPF is the deductible amount, and medical/education expenses are covered by the company, not from your salary. These are split in BS, HRA, TA, and other allowances. In this field, you can go.