Understanding Salary Breakdown: How Do You Divide a 15,000 Salary?

Dear friends,

Good morning. I would like to know if a salary of anybody is 15000/-, then what is the breakdown of that employee, and also tell me how we do the breakdown. Are there any rules or percentage?

Thanks & Regards,
Sujay

Hi Sujay,

A sample breakup of Rs. 15,000 gross salary is as follows:

- Basic: Rs. 7,500 (50% of Gross)
- HRA: Rs. 3,000 (40% of Basic)
- Conv: Rs. 2,250 (30% of Basic)
- Spl Allow: Rs. 2,250 (Balance)

I hope this breakdown will be useful for you.

Regards,
Anurag Mishra

Dear Sujay,

Salary breakup should be done by taking income tax point of view into consideration. There is no use in giving conveyance for more than 800 rupees per month because it is taxable after Rs 800/-. HRA should be given at 40% in case of non-metro cities, which can be exempted from tax. The company can have medical allowance, LTA, etc., which can also be exempted from tax.

In this case, give 10,200 basic, 4,000 HRA, and 800 conveyance.

Thanks,
J S Malik

Hi Sujay,

A sample breakup of Rs. 15,000/- gross salary is as follows:

Basic: 3500
HRA: 1750
Conv. Allowance: 1200
Uniform Allowance: 750
Newspaper Allowance: 100
Ad hoc Allowance: 6860
PF Employer: 420
PF Employee: 420

Regards,
Dipali Lakhani

Thanks Dipali, but if I show basic 3500/-, we will have to pay PF. However, according to salary, the person is exempt from PF. Can we show this breakup on the roll? Thanks, Malik and Anurag, for your help.

Thanks & regards,
Sujay

Dear Sujay,

PF is compulsory. Employees have to pay their contribution for PF, and you can't show this breakup on the roll.

Regards,
Dipali Lakhani

Hi Sujay,

You can bifurcate the salary into the following heads:
Basic - 7500 (50% of gross)
HRA - 3750 (50% of basic)
Transportation - 800 (only up to 800 is tax-free)
General / Special Allowance - 2950 (balance amount)

I hope this will help you understand the salary break-up.

Thanks and regards,
Jyoti Negi

Hello, I want help. Today is my first day at my job. Can anybody kindly tell me when I should ask for a salary breakup?