Salary Calculation - Salary Caluculation [Thread 246235]

Hi Senior’s

I’m working in a domestic BPO (Data management) company located in Chennai. Whereas the head office is in Ahmedabad and all our salary is disbursed from the HO. Ours is strength of 350 staff.

Please find below the salary structure which was prepared by our HO. Kindly let me know is the calculation and the salary structure is correct.

As per my understanding the salary calculation is wrong, because the bonus is calculated twice. Once it is added and then in the next it is subtracted, so no where the bonus is calculated.

Seniors, please solve my query and help me in understanding the above calculation. If it is wrong, requested you to please correct it and also make me understand so that I can further speak and correct it. If it is right, then please explain how.
Basic 25%2053HRA 50%1027SPL Allw4715.7PF 12%246Bonus 8.33%171.036Gross8213Esi 1.7554PF 24%493PT 80Bonus 8.33%172Take Home7414ESI 4.75 %147
Regards
Narinder

Narinder, Basic salary should be 40+% of gross, HRA 50% of Basic, 800 conveyance which is common, rest of the amount can be name as other/special allowance, these are earnings.
PF 12%, ESI 1.75%, PT are part of deductions.
PF employer contribution 12% ESI 4.75% will be considered for CTC calculation.
Hope this clarifies.
Giree

What Gireeshjayaram is trying to tell is that the calculations is correct, there is nothing to rectify. Bonus amount of 172 X 12 i.e. Rs. 2,064/- will be paid to you once a year when the bonus is declared. For computation of your CTC only, this figure is taken here. Rest of the calculation is ok.

Dear Narinder,
Pls see the correct calculation of your salary & your takehome salary will be Rs.7332/-. I think your salary break up is incorrect pls contact with your HR Deptt. Pls let me know if do you need any other help.
Monthly(Earning)Deduction205324610271374715807795463Net Payable Monthly7332Bonus will be pay on annual basis.24 % of PF will be deposited at PF Deptt.6.5% ESIC will be deposited at ESIC Deptt.

It is ok, but not tax friendly..! what we do is we avoid Special allowance which is completely taxable.

Dear Narinder,
Please first tell me what do u want to calculate.
It is CTC or take home salary.
If it is take home salary then the above formula given by your corp HR is absolutely correct. Most probably, this has been designed just to calculate take home salary for the candidate.
In case of calculating CTC, u have add all the components which are being paid by the company on the individual as under:
Basic 2053
HRA 1027
Spl Allow 4715
Gross Salary 7795
PF (Employer Contribution@12%) 246
Bonus (8.33% of Basic) 171
ESI Contribution by Employer (@4.75% of Gross) 371
PT 80
Gratuity (Basic *15/26/12) 99
Cost to Company - 8762

Dear all,
My name is Manikandan.S, working in Trivandrum, as an accountant in a private concern. The above your discussions were very useful to me.
Thanks a lot to every one.
Regards,
Manikandan.S
0-9539075867

Thanks Mr. Ajay
Salary calculated considering the take home salary. But i did not understood that in the first part bonus is added and then subtracted, then in this case bonus is no were calculated.
Our employer PF is calculated on 25%, when spoken to the HR she said that it has been revised, and most of the organization follows the same. But she did not revealed when the employer pf% revised
Regards
Narinder