How Do I Create a Salary Structure for a Small Company with Medical Allowances?

Hi, I am working with a small company. The company has 20 employees, and the salary ranges from 10k to 30k per month. I want to create a perfect salary structure based on the current IT slab for the employees so that I can provide them with a salary slip. If the gross salary is 30k, how should I prepare the salary structure? What should be the percentage of basic salary, HRA, etc.?

This is my first time preparing a salary structure, so any help from you all would be greatly appreciated. If we include medical allowances in the salary slip, is it necessary to partner with a medical or insurance company for the same?

Thanks,
Jayu

Dear Jayashree,

The salary structure is as follows:

CTC = Fixed Pay + Variable Pay
Basic = 40% of Fixed CTC
Choice pay or (Tax saving options) = 60% of Fixed CTC
Take-home = Gross - Deductions
Gross = Basic + HRA + DA + CA + Medical, etc.
Deductions = PF, PT

Medical can also be used as a tax-saving option. Usually, it is ₹1250 monthly, i.e., ₹15,000 annually. The employee can submit bills for the same and claim monthly. There is no need for a tie-up for this purpose.

Dear Seniors, please correct if the data is incorrect.

Thank you.

If Gross is $30,000, the breakdown of the components as a percentage of Gross is as follows:

- Basic: 40% of Gross
- HRA: 20% of Gross
- CA: 20%
- EA: 10%
- Other or Special A: 10%

This distribution outlines how different components relate to the Gross amount provided.