Understanding Deferred Salary: How It's Calculated and Who It Applies To

What is deferred salary? How is it calculated? Is it applicable to all companies, or does it change based on the company's compensation policy?

In a salary cost-to-company basis calculation, there are mainly 3 components of salary:

1) Immediate receivables
2) Deferred Salary
3) Taxes & compulsory deductions.

Focusing on deferred salary:

Gross salary minus the deductions equals the cash in hand salary component. That is: Basic + HRA + Edu All + Conv. + Sp. All + Cash cony = GROSS SALARY (DEDUCT TAXES HERE TO GET CASH IN HAND).

The remaining components of your salary, namely these, are all deferred salary: Company's contribution to PF + Med. p.a + LTA p.a + Any special allowances like upcountry allowance p.a. + Bonus p.a + Entertainment.

Hope this information helps you so far.

Thank you,

Definitely, this has given me some input. But I would also like to know, is there any standard formula or format in which this deferred salary is calculated, and is this payment made on a regular basis (i.e. yearly or every 6 months)?