Salary Breakdown Confusion: Can Someone Explain HRA, BASIC, PF, ESIC, and BONUS?

Dear All,

Please let me know what the breakdown of the salary structure is, such as HRA, BASIC, PF, ESIC, and BONUS.

Preeti

Hi Preeti,

The contents of the salary breakup are as follows. You can prepare it according to your own suitability. HRA would be 50 or 60% of the basic salary.

- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement per Month
- Gross Per Month = Sum of all the above
- Gross Per Annum = 12 * Gross/Month
- PF Contribution = 12% of Basic/Annum
- ESI Contribution = 4.75% of Gross/Annum
- Medical: The mediclaim facility is provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10,000/Month. Amounts exceeding this will be covered under Mediclaim or as per company policy.
- Ex-Gratia/Bonus: A fixed bonus amount
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESI
- Annual total cost is also referred to as CTC.

I hope this clarifies everything for you. If you have any queries, feel free to ask.

Regards,
Amit Seth

Hey,

I am attaching a template. Check the Excel. It should give you a clear picture. Let me know how it worked!

Cheers,
Gayathri