New to HR? Need Help Understanding Gross Salary Breakdown and Basic Salary Rules?

Hi,

I am new to the HR department and I want to know how to calculate and split the gross salary. If my gross salary is Rs. 25,000/-, then what is the breakup? I also want to know the minimum and maximum amounts to be paid for Basic Salary. Are there any rules or percentages for calculating this?

Srinivasan

Hi, my name is Monu Kumar. The total gross salary will be calculated in percentages - 60% for basic, 30% for HRA, and 10% for conveyance. This is a commonly used formula, but every company has its own policies.

Thanks,
Monu Tyagi

Hi,

Kindly check out the salary breakup in your company:

- Basic
- HRA
- CA
- Transportation Allowance
- Medical
- Bonus
- Annual Allowance, etc.

What is the percentage they have for each breakup? These items come under earnings. Sometimes, they also include PF (Employee contribution) in it.

Regards,
Mohamed Rafiulla

Hi there,

Consider your gross salary as "x." It varies from company to company; in infrastructure companies, they calculate for 45% to 50% of (x), and in software companies, it ranges from 35% to 40% of (x).

Thank you.