Salary Breakdown: Should HRA and Allowances Be Proportional to Days Worked?

Hi all,

Can anyone tell me whether HRA, conveyance allowance, etc., should be calculated proportionately depending on the number of days present, or should the same be given in full even if a person has not worked for all days in a month?

Thanks,
Subramanian V

Dear Subramanian,

Greetings of the day.

The HRA, Conveyance, etc., whatsoever any organization pays monthly will be calculated based on the number of days in a month.

Dear Subramanian,

All calculations are based on the number of days worked. HRA and other allowances are what employees receive at the end of the month. If these do not fluctuate, how will the entire salary fluctuate?

Regards,

This is a matter of Company Policy. In our company, previously we were paying HRA and Conveyance for the full month if a person had worked more than 25 days in that month. Since 2007, we have been using the Tally package, and this system of calculation is not supported by Tally. Tally is an international package framed with international accounting standards as well as the prevailing accounting standards of different countries. Currently, we are calculating the salary based on the actual number of days worked. Therefore, it is a matter related to your company policy.

Regards,
Modi Ashok Kumar

Please note, conveyance Allowance Rs. 800/- per month, HRA 50% of basic in Metro cities, and 40% of basic in cities other than Metro are exempt from Income Tax. To qualify for the HRA exemption, certain calculations need to be done.

HR is always and everywhere in the world counted as 50% of the basic salary.

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Please note that the links provided have been removed.

Actually, there is no fixed percentage mentioned in any books. Salary breakups can depend on the company policy, so it may vary from company to company.

Most companies set conveyance allowance at 800/-, which is tax exempted.

Hello all,

We also calculate HRA at 50% of the basic salary and provide a conveyance allowance ranging from Rs. 800 to Rs. 1200. However, I would like to know if there is any written documentation regarding this.

Thank you.

What if the company's calculation is different? You can see the pattern arranged in my firm as follows:
- Basic + Gross (No Gross in hand)
- Relocation Allowance
- Bonus
- Travel Allowance
- Canteen & Lunch
- Extra

Please provide suggestions on this. I am in HR. How do I create a payslip? What are the best additional evaluations that can be added to this slip? Please send a sample salary for this.

Thank you,
Hetal
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