Curious About Salary Breakdown? Let's Discuss How ₹3,50,000 is Divided Annually

Hi all,

How does the HR or payroll department divide the salary? Can anyone let me know the salary breakup for ₹3,50,000 per annum?
1. How will the basic, HRA, DA, and other allowances be calculated?
2. What percentage of the CTC or Gross will the basic be divided?

Regards,
Sweta

Dear Swetha,

It depends on your company's policies regarding salary. Normally, the Cost to Company (CTC) includes Employer PF Contribution, Gratuity, Bonus, Incentives, Mobile Allowance, etc., so you have to separate the gross salary. Usually, some companies give 50% of the basic on the gross.

Hi Swetha,

There are no rules about the payroll. Everything is based on company policies. The only criteria is that it has to be designed in a way that it should be reduced for our employees. Based on that, we can give a breakup of different components in the salary breakdown.

Jeevarathnam Reddy P

Hi Swetha,

For example:
Take gross salary as 10,000/-
Basic & DA (60% on gross) = 6000/-
HRA (40% on Basic & DA) = 2400/-
Conveyance (Fixed) = 800/-
Special Allowance (12% on Basic & DA) = 720/-
Other Allowance (Balance amount) = 80/-
Total Gross = 10,000/-

You can change the breakups as per your convenience, like City allowance, Medical allowance, Education Allowance, Incentives, etc. If you have any queries, feel free to ring me.