Understanding Your Payslip: What Do Basic % and Other Components Mean?

Hi,

Please explain to me in detail about the things included in the payslip, such as the Basic % and other components.

Vani

Hi,

Find the details below for your reference.

Earnings include Basic salary, DA, H.R.A, Travelling Allowance (Fixed), Medical Allowance (fixed), LTA, Performance Allowance, and others; these all come under earnings.

Deductions include ESI and PF (Employee Contribution), Professional Tax, TDS, and others.

Salary components differ from company to company, but these are the basic salary components. Basic% is 40% of the annual CTC, and HRA is 50% of Basic; it may also differ from company to company.

In a payslip, there are 4 things to include:

1. Salary for the month
2. Deductions (Advances, loans, fines, etc.)
3. Earnings (Overtime, errors, leave salary, bonus, reimbursement, and other payments)
4. Net pay (1+3-2=net pay)

Naeem
Email: mnaeem81@yahoo.com