New Company Payroll Challenges: How Do You Calculate Salaries and Deductions?

Our is a new company.

Can anyone please suggest how to calculate employees' salaries per month? What are the deductions?

If the employee joins in the middle of the month, will there be any change in the basic salary?

How to create PF accounts? How to deduct from employees? (Is it 12% on basic)

Hi there,

I will definitely work it out for you, but before that, I need to know what kind of company you are. Are you a Pvt. Ltd. Co./P'ship Co/Sole Proprietorship? What do you deal in: service/manufacturing/trading/other? If possible, please send me your company profile.

Dear concordedesigns,

You have to specify the deduction part which is applicable to your organization. Basic pay won't change if an employee joins in the middle of a month; however, the pay would be calculated based on the number of working days of that employee. PF would be applicable to employees who take home a salary of 6500.

You have to be clear on the question. Please search the forum regarding the questions asked. Always search the forum before posting a question. If you still have doubts, send me a message.