Understanding Salary Breakdown: How Is Your Annual Pay Divided into HRA, CCA, and More?

Dear All,

I just want to know the standard process of bifurcation of one's salary. For instance, if one's yearly salary is 2,00,000, what are the bifurcations made and on what basis? I am interested to understand how much will be allocated to HRA, CCA, etc., and what other factors are involved in the salary bifurcation. Additionally, could you please explain what HRA and CCA actually mean, providing details on each?

Thank you.

Ms. Sonali,

I consider INR 2,00,000/- per annum as a gross salary, then the breakup could be as follows:

Basic: INR 8,334.00 (50% of gross salary)

HRA: INR 3,333.00 (20% of gross salary) - House Rent Allowance

Conveyance: INR 1,417.00 (10% of gross salary - 250)

Special Allowance: INR 1,667.00 (10% of gross salary)

Other Allowance: INR 1,666.00 (10% of gross salary)

Education: INR 250.00 (maximum limit)

Gross salary: INR 16,667.00

CCA - City Compensatory Allowance.

Regards,

Giri Manager - HR

Dear Pradnya,

Deductions will be deducted accordingly from CTC, i.e., PF, ESI, Professional Tax, Gratuity, etc. They will be deducted as per government rules.

Regards,
RAHUL KUMAR

Here is the corrected version of the user input with proper spelling, formatting, and grammar:

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2,00,000

This is the required one.

120000 - Basic.
336000 - HRA
16332 - Employer contribution in PF a/c
14400 - Employee contribution in PF a/c
2730 - Employee ESIC Contr.
7410 - Employer ESIC Contr.
3128 - S.Allowance

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I have corrected the spelling, punctuation, and formatting errors in the text provided. Let me know if you need any further assistance.

In general, the base pay is 40% and other components make up the remaining 60%.

For HRA, it is typically 40% of the basic salary in metros and 40% in non-metros.

Additionally, there are other allowances such as conveyance (Rs. 800/- per month), Children's Education Allowance (Rs. 100/- per month per child - maximum 2 children), and the rest falls under special allowance.