Salary Breakdown Examples: Can You Share Your Insights on Designing Employee Pay Structures?

Hello Everyone, I\'ve attached a file regarding examples for creating a salary breakdown (the process of designing a salary structure). Continue to spread positivity with your smiles.
Best Regards,
Mahesh K Prasad

Hi all, can anybody help me out with salary breakup? I want to know how we calculate Basic, HRA, TA/DA, CA, etc., out of the gross package. Is there any fixed percentage for that?

Hi all, can anybody help me out with the salary breakup? I want to know how we calculate Basic, HRA, TA/DA, CA, etc., out of the gross package. Is there any fixed percentage for that?

It would really be helpful in designing the salary structure. You have given the deduction of MLWF; I would like to know what the grade stands for. So that it would be helpful, as I think the grade differs from company to company. Also, I think as per MLWF act only the word Manager or Supervisor is exempted from MLWF. Would be happy to hear your suggestions.

Lourdes

Hi,

It's really great. One more thing I want to ask is that I want to make a term paper on Compensation Management. Can you please suggest some latest topics so that the work I do will be relevant for all of us?

Regards,
Sonia

Hi Mahesh,

Outstanding material - Love it. I am employed at a production company and presently working on succession planning. If you could kindly provide me with a few tips on how to get started with it, I would appreciate it.

Regards,
Javed

Hi Mahesh,

I want to know why the bonus is Rs. 6000/- in your salary structure. At what percentage have you taken it? I am a bit confused.

Thanks in advance.

Rajeev Dixit

Dear Friend, You have to deduct the PF contribution for the amount of Rs. 6500.00 only. Hence, Rs. 6500 x 12% = Rs. 780 only. Are you clear now?
Regards, Alphonse

Hi, I needed details on PF. I have worked for a company for 4 years. My monthly PF deduction is $1560, which was deducted from my salary. Now that I have left the job, how much money will I get?
Cheers, Sup

Can you please tell me why the professional tax is Rs. 2500, even though the tax is Rs. 200 per month? It should be Rs. 2400, right? (200 * 12)

I had a similar kind of salary tracker, but this one is improved and well defined. Really good one! Thanks, dear.

Highly useful salary structure. However, it does not contain components exempted from the purview of income tax, other than, of course, HRA, Medical, and Education Allowance. It would be very useful to all if a salary structure/breakup is suggested for a CTC of Rs. 8.00 lakhs and above per annum that gives maximum advantage from a tax perspective.

Hi, I'm doing my MBA in HR from NIBM (correspondence). Could you please provide some recommendations for good institutes that offer practical training and placement guidance? I am currently working in a BPO. Thank you.

Thank you very much for your inputs. Are the statutory deductions for payroll the latest that you have? I thought the ESI deduction for an employee was for a gross salary of less than 15K per month. Can you please clarify?

Thanks,
Bharati

Dear Sir, I need assistance in creating a salary structure based on the headings listed below and connecting it to the salary slips. Please provide guidance on the appropriate salary structure, including the following components:

BASIC + GRADE PAY = BASIC PAY + DA = TOTAL OF BASIC PAY + DA + HRA + TA + MEDICAL ALLOWANCE + CLA + MGMT. ALLOW. = GROSS SALARY - PF AMOUNT - VOL CONT. - PT DED - INCOME TAX - OTHER DED - NET SALARY WAGES PENSION EPF

I would appreciate your help in linking this structure to the salary slip. Thank you.

Regards, Roger Dsouza

Taxation for HR Professionals

The taxation applies to workers and employees who are key subjects for Accounts/Finance personnel (Commerce, CA, and ICWA professionals).

The knowledge of HR professionals on taxation (Income Tax and Professional Tax) is a good and welcome feature because HR is limited to IT and PT for payroll management. For an in-depth understanding of the taxes associated with payroll, you have to go through the Income Tax and its applicability to different income groups and applicable exemption criteria by going through the relevant notifications and books (Income Tax on Salary by Swamy). In case of confusion, consult a tax consultant, preferably a Chartered Accountant.

Understanding Income Tax and Professional Tax

In recent times, the IT has been in a much simpler form, so you need a dedicated study of seven days. The Professional Tax varies from state to state, so you need to read the Professional Tax Act of your state with the recent amendments. Please do not refer to internet studies; rather, begin with the books, marking the pages with flags on the most relevant information.

As an HR professional, it is essential to have a good understanding of the taxes associated with payroll management. The main taxes to consider are Income Tax, Professional Tax, and Service Tax. Here are some practical steps to guide you:

- Income Tax: Familiarize yourself with the Income Tax Act and Rules, especially recent amendments. If in doubt, seek advice from a tax consultant, preferably a Chartered Accountant.

- Professional Tax: Research the PT Act and rules of your specific state, as this tax varies across different states in India.

- Service Tax: Note that Service Tax applies to consultants paid through bills. This tax is typically handled by the Accounts/Finance department.

When delving into tax-related topics, it's advisable to refer to current publication books for accurate information rather than relying solely on internet sources. By dedicating time to study within a two-week period, you can acquire substantial knowledge on these tax matters. Remember to maintain a single line break between paragraphs for better readability and correct any spelling or punctuation errors for improved text quality. If legal aspects are involved, always reference the relevant labor laws or policies accurately and precisely.