Salary Breakdown Help: How Do You Divide a 7,000 Rupees Gross Amount?

Hi sir,

Please tell me how we should provide a breakdown when the gross amount is 7,000 rupees.

Hi Nagendra,

I have enclosed a sample format for the Salary Breakup for you. I hope it will work for you.

The working is simple and fair. However, I would like to bring to your attention that taxes are always applicable as per the Act. Hence, I suggest that we do not provide the PT deduction of Rs. 200 in the salary structure. Instead, it can be factored into basic pay, HRA, or other allowances.

Everything else seems fine.

Nagendra, I also want to inform you that it is imperative for your Basic pay to comply with the Minimum Wages Act of the local State.

Regards,

Ok, Mr. Vishwagayathri,

I have enclosed another salary structure for you and Nagendra. I hope this will give you all the answers you are looking for. This is a password-protected file which you can collect from the file name.

Hi Nagendra,

I have enclosed the Salary Breakup for you. I hope this will work for you.

Regards,
Deepika

Calculating Salary Breakdown from Basic Salary

It's quite straightforward to calculate a salary breakdown if you know the basic salary of the employee. First, add all allowances as per the percentage allowed by the company. Alternatively, if you know the Cost to Company (CTC), consider the basic salary as variable "X." Multiply "X" by each percentage and add all components, including X, to equal the CTC.

For example, let the CTC be 18,000 monthly:
- Basic: X
- HRA: 10% of X
- DA: 10% of X
- TA: 5% of X
- PF: 12% of X
- And so on, add in this manner.

Calculate as: 137X/100 = 18,000. By solving this equation, you can determine the basic salary and all other amounts. ESIC will be deducted after deducting the EPF contribution from the employee. Subtract the ESIC from the gross salary to get the net salary.