Salary Structure Breakdown: How Do You Customize It for Your Company?

Hi Guys,

Just for your reference, attached is a sample breakdown of salary structures. You can modify it as per your company policies.

Thanks

I am attaching the Salary format below:

L1 L2 L3 For Employee For Company
Basic 35% of CTC 40% of CTC 50% of CTC Taxable Non FBT

HRA 65% of Basic 65% of Basic 65% of Basic Taxable / Non Taxable Non FBT

Medical 1250 1250 1250 Non Taxable Non FBT

Transport Allowance 800 800 800 Non Taxable Non FBT

Uniform Reimbursement 2000 1500 1000 Non Taxable Non FBT

Education Allowance 200 200 200 Non Taxable Non FBT

Petrol & Vehicle Maintenance 5000 3000 Nil Non Taxable FBT 7%

Laptop Rent 1500 1500 1500 Non Taxable Non FBT

Mobile 1200 800 600 Non Taxable FBT 7%

Leave Encashment 4.16% of Basic 4.16% of Basic 4.16% of Basic Taxable

Special Allowance Rest Of the Amount Rest Of the Amount Rest Of the Amount Taxable

Gross

Bonus 8.33% of Basic 8.33% of Basic 8.33% of Basic Taxable

ESIC Employer Contribution 4.75% of Gross 4.75% of Gross 4.75% of Gross

P.F Employer Contribution 13.5% of Basic 13.5% of Basic 13.5% of Basic Non Taxable

Gratuity 4.16% of Basic 4.16% of Basic 4.16% of Basic Non Taxable

CTC

Example: -

L1 L2 L3 For Employee For Company

Basic 35% of CTC 40% of CTC 50% of CTC Taxable Non FBT

HRA 65% of Basic 65% of Basic 65% of Basic Taxable/Non Taxable Non FBT

Medical 1250 1250 1250 Non Taxable Non FBT

Transport Allowance 800 800 800 Non Taxable Non FBT

Uniform Reimbursement 2000 1500 1000 Non Taxable Non FBT

Education Allowance 200 200 200 Non Taxable Non FBT

Petrol & Vehicle Maintenance 5000 3000 Nil Non Taxable FBT 7%

Laptop Rent 1500 1500 1500 Non Taxable Non FBT

Mobile 1200 800 600 Non Taxable FBT 7%

Leave Encashment 4.16% of Basic 4.16% of Basic 4.16% of Basic Taxable

Special Allowance Rest of the Amount Rest of the Amount Rest of the Amount Taxable

Gross Bonus 8.33% of Basic 8.33% of Basic 8.33% of Basic Taxable

ESIC Employer Contribution 4.75% of Gross 4.75% of Gross 4.75% of Gross

P.F Employer Contribution 13.5% of Basic 13.5% of Basic 13.5% of Basic Non Taxable

Gratuity 4.16% of Basic 4.16% of Basic 4.16% of Basic Non Taxable

CTC Example:-

Basic 17,500 10,000 6,550

HRA 11,375 6,500 1,000

Medical 1,250 1250 0

Transport Allowance 800 800 800

Uniform Reimbursement 2,000 1500 0

Education Allowance 200 200 0

Petrol & Vehicle Maintenance 5,000 3000 0

Laptop Rent 1,500 1500 0

Mobile 1,200 800 0

Leave Encashment 728 416 272

Special Allowance 3,727 -3,681 773

Gross 45,280 22,285 9,396

Bonus 1,458 833 546

ESIC

P.F 2,100 1,200 786

Gratuity 728 416 272

FBT 7% 434 266 0

CTC 50,000 25,000 11,000

Dear Senior,

Presently working in the Oil and Gas Industry, I am seeking detailed information on the following:

- Who (which grade of employees) are eligible for Overtime payment.
- Who (which grade of employees) are eligible for Incentives.

As per my knowledge, employees who are eligible for Incentives are not eligible for OT Pay, and vice versa.

- Please provide me with the OT Payment structure as per the statutory norms and general practice in the industry.
- Incentive plan calculation and general practice in the industry.

Thank you.

Dear Vaishali,

Anyone below managerial level is eligible for overtime; however, it depends on the company policies. Major companies provide overtime up to clerical staff.

Regarding incentives, it also depends on the company policy. Moreover, incentives are given to everyone based on performance.

As I am from the consulting industry, you can reach me at gopal.krishna@mcsl.co.in.

Regards,
Gopal

Hi,

Can I get information on if a person goes onsite to another country for 6 months and works in India for the other 6 months, what would be the tax effect in terms of exemption and so on?

Regards,
Gopal

My name is Jaishree Nair, and I work as an HR Manager in a Mall. I have 13 years of work experience in HR. I completed my post-graduation in HR & IR 12 years ago, and I believe that there have been significant changes in the HRM field since then. I am interested in refreshing my skills in HR and would appreciate your suggestions on suitable courses or institutes that offer correspondence courses in HRM.

Thank you.

Jaishree

Kindly advise on the salary structure for associates at the level for the purpose of increasing the take-home salary.

Regards