How Would You Break Down a $10,000 Monthly Salary? Seeking Urgent Help!

Dear all,

Can anyone help me to break up the salary amount of $10,000 per month?

Urgent.

Regards,
Tarun

Hi,

Please find the salary break up of 10000:

Basic: 4500
PF: 540.00
HRA: 2200
ESI: 0.00
Conv: 3000

---------------------------------

G.S: 10000
Net Salary: 9510.00/-

Thanks,
Sujata
Sr. HR Executive

Hi Tarun,

Please find below the salary break-up for Rs. 10,000:

- Basic: 5000
- HRA: 2000
- Conveyance: 2000
- Miscellaneous: 1000

Thank you.

Dear all,

Have a good day.

I have joined an organization recently. I have encountered a problem. Even though our organization is 25 years old, we do not have ESIC Registration. Although we do have an insurance plan for employees, we now wish to register with ESIC. What will be the process for registration, and how can we determine if our organization falls within the ESIC covered area?

Urgent.

Regards, Tarun

Hi, I am Arun Kumar from Vellore. I am working at Tata Motors' car sales company. I want to know the procedures for maintaining attendance registers, PF, and ESI.

Hi,

Please find the salary break up of 10000:
Basic: 6500 (if any employee joins directly at Rs. 6500 in basic, then no deduction in PF)
HRA: 2250
PF: 0.00
ESI: 0.00 (if any employee's gross salary is Rs. 10000, then no deduction in ESI)
Conv: 1250 @ 50/day

G.S: 10000
Net Salary: 10000.00/-

Thanks,

Sir,

It is basic above Rs. 6,500 so make it Rs. 6,550. This will exempt you from PF. So the net salary will be Rs. 10,050. This gets exempted from ESI.

Note: Work on CTC and give your employees benefits. It depends on what type of industry you work in and the employee's salary. Only if you give the employee something like this, it could be nice for them to also be secured in their job. I would suggest convincing the management that employees are not machines to be squeezed and left over at a later stage. As an HR professional, you should care for them. Work on benefits rather than withdrawing them. Let us discuss more on how to give more benefits to our employees at a minimized cost.

Enjoying Life Time.

Regards, Ramamurthy R

Tarun,

Asking all of us about the breakup of ₹10,000, answers will differ from org. to org. policy. I suggest you establish your own policy instead. However, I can provide you with the following heads:

- Basic
- HRA or HMA
- Conveyance
- PMS
- LTC
- EL
- PF
- ESIC
- Bonus
- PP
- SA
- Refreshments
- Skill Enhancement Allowance
- Amrender

Hope you might have got the answer to both of your queries. If not, let me focus on the same.

Coming to Salary Breakup:

Cost to company is divided into components and given different names to those components like:
1) Basic: it should be 40-50% of CTC.
2) HRA (House Rent Allowances): it should be 50% of basic.
3) Conveyance: as per the Shops and Establishment Act, should not be more than Rs. 800 per month (800*12 = 9600) should be directly mentioned in the CTC.
4) LTA: Leave Travel Assessee: Should be one time from your basic salary.
5) Medical Allowance: it should be 1250 per month (=1250*12=15,000).
6) Special Allowances (SA): CTC - (1+2+3+4+5) = Special Allowances.
7) Holiday Work

You can create as many components as you like, and be careful while creating all these components. Try to make as many components as possible that are not taxable income components (like Hard furniture, Soft furniture, Child Education, LTA, Medical Allowance, HRA, Car Maintenance, Petrol Reimbursements, Telephone Reimbursements, etc.).

Coming to ESIC: as you said that your company has experience in the industry for about 25 years and now wants to create an account in ESIC Act. I just want to know how many employees are working with your organization and what is the Salary Bracket you are following. If your salary bracket is more than 10,000, then there is no need to open an account in the ESIC department. If not, then approach a consultant who has much experience in all departments (like Labour Department, PF ESIC department, etc.).

If you need a more detailed explanation, feel free to get in touch with the below-mentioned contact number or through my web address.

Dear Tarun,

Please find the breakdown below:
Basic: 5000
HR: 2500
Conveyance: 800
Others: 1700
PF: 12% of Basic
ESI: 1.75% of Gross Salary

Regards,
Bhagwan

Dear all,

Have a good day.

I have joined an organization recently. We are facing an issue where even though our organization is 25 years old, we do not have ESIC Registration. We currently offer an insurance plan for our employees, but now we wish to register with ESIC. Could you please guide us through the registration process and help us determine if our organization falls within the ESIC covered area?

Urgent assistance required.

Regards,
Tarun

---

Mr. Tarun,

First, you need to check if your organization's area is covered under ESI. Review the notification for this information. Then, based on the balance sheet and employee strength, prepare and apply for registration. Please note that this process may not be straightforward. My recommendation is to share your organization's details with me, and I will advise you on the necessary formalities.

Ramnath
Incharge HR
9448317309 (Bangalore)
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Hi, I am Nimisha. I am working as an HR Executive in a KPO company. I am seeking help with the salary structure. Do you have any particular breakup that you would work with for any kind of organization?

Dear Tarun,

The ideal CTC structure for a gross salary of 10K per month is as follows:

Basic: 5000 (Basic should be at least 50% of Gross)
HRA: 2500 (can be anything between 5% to 50% of Basic - in this case, it's 50%)
Conveyance: 800 (can be anything between 0 to 800)
Medical Allowance: 1250 (can be anything between 0 to 1250)
PDR: 450 (maintain it max up to 1000 per month)
Gross: 10000
PF Employee: 600 (12% of Basic)
ESI Employee: 175 (1.75% of Gross - rounded off to the nearest higher rupee)
Professional Tax: ___ (if applicable)
Net Take Home = Gross - (PF Emp + ESI Emp + PT)

Regards

Hi Arun,

You have to maintain the Muster Roll, which is compulsory. For ESI Registration, you should consult the local ESIC office; they will provide you with Form-01. Provide the details as per the form if your firm employs more than 20 employees, and the same goes for PF. The procedures are simple, and you can easily manage that.

Shahida.R

Hi Sujata,

Please re-read the ESIC Act once again. ESIC is applicable on Rs. 10,000. Hence, make the breakup accordingly.

Thanks,
Ravi

Dear Mr. Ganesh,

My name is Nagesh. Please make a list of your routine works on a priority basis in a time management table and give priority to urgent and pending tasks. Also, identify non-value-adding tasks that you are carrying out daily and look for opportunities for development in your routine work.

Regards,
Nagesh S H
9916951223

Dear Ganesh,

For gross salaries above Rs. 10,000 per month (i.e., from Rs. 10,001 onwards), there is no deduction of ESI.

Regards,
Sivas

Dear Tarun,

The standard salary structure would depend on the location. The 10K mentioned is the CTC/Gross or in-hand salary. Please provide the details to enable me to organize everything for you.

Rgds,
Mohit

Dear Tarun,

It is a rule for the PF authorities to pay the PF contribution equivalent to the minimum wages amount. Please ensure compliance with this requirement. If you wish to avoid PF and ESI contributions as Ramamurthy suggested, that is also correct.

For obtaining ESI Registration, please download Form No. 1 from the website esic.nic.in, duly fill it, and submit it to the ESI Regional Office in your city. It is advisable to consult the relevant ESI Inspector at your local office. Bring along all necessary documents such as the Muster Roll, Wages Register, and other registration papers for the Inspector to facilitate the submission to the regional office.

When submitting these documents, be prepared to address potential inquiries regarding why you did not register for ESIC earlier. Should you have any further questions or concerns, feel free to contact me via email at snrktm@yahoo.com.

Thank you.

Dear Arun,

The muster roll needs to be signed by all the employees who are working in your organization daily. Due to the nature of your organization, ensure your employees sign it once or twice.

Regarding the wages register, it should be maintained monthly. Prepare it every month before salary disbursal. Display all the elements, including statutory deductions only (PF, ESI, Insurance, TDS, etc.), and ensure it is signed by all the employees.

Thanks and regards,
Sindhu

Hi,

Please find the salary break up of 10000:
Basic: 6500 (If any employee joins directly at Rs. 6500 in basic, then no deduction in PF)
HRA: 2250
PF: 0.00
ESI: 0.00 (If any employee's gross salary is Rs. 10000, then no deduction in ESI)
Conv: 1250 @ 50/day

G.S: 10000
Net Salary: 10000.00/-

Note: 6500 is the maximum ceiling, not the exemption limit. If the salary (Basic + DA) exceeds 6500, then the salary shall be deemed to be 6500. The organization, at its discretion, may pay in full irrespective of this ceiling.

Thanks,

Dear Tarun,

Can you tell whether it is Gross, CTC, or NTH so I can provide the same?

Regards,
Kris

Hi,

Thanks to all who contributed valuable information on this topic. Are there any basic limitations to achieving the prescribed PF figure?

I have a salary structure as follows, recommended by an Auditor, for the CTC of 1.50 lac:

Basic - 6,500
HRA - 3,250
Special Allowance - 407
Night Shift Allowance - 1,250
Employer PF Contribution - 780
Gratuity - 313

Is this structure okay? Can anyone suggest changes?

Thanks,
Velu

For ESIC coverage, the ceiling is 10,000/-. I suggest you fix the salary at 10,050/- so that you can avoid ESIC. As suggested by Ramamurthy R, make the basic salary Rs. 6,550. This will exempt you from PF.

Regards,
Naik H J

Basic: 4000
HRA: 2000
PF: 480
Conveyance: 800
Medical: 1500
Spl. Allowance: 740
Total: 9520
P.S. EPF would be 480.

Kumar Amit Ranjan

Dear,

Please note that for Basic 6500 Pf would be deducted - it is over 6500 but with a condition that the employee was never a member of PF Act.

Regards