Salary structure for Private limited company and what are all the leaves we can avail per year?

Dear sir,

I wish to know the salary structure for a private limited company and what leaves we can avail per year.

Hi Chellamal,

Find below the salary structure mostly prevailing in the current time in the industries.

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

Basic

HRA

TA

Other Allowance

Mobile Reimbursement / 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 provided to an employee who is not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Getting more than this will be covered under Mediclaim or it depends on company policy.

EX-Gratia/Bonus = A fixed amount as a bonus

Annual Fixed Gross Cost = Gross/Annum + Ex-gratia

Annual Total Cost = AFGC + PF + ESIC

Annual total cost is also called CTC.

Regarding Leaves, it is around 32 leaves in a year apart from maternity leaves. These 32 leaves are mainly divided into 3 categories:

1. Earned or Paid Leaves - 16 days

2. Casual Leaves - 8

3. Sick Leaves - 8

Paid leaves can be carried forward to the next year, whereas the same is not allowed with other types.

Regards,

Amit Seth.

Hi,

We are an FMCG company with a turnover of more than 200 crores and have a nationwide presence in India. We would like to create a tax-friendly salary structure for our employees (Assistant Managers and above) that complies with the laws of the country.

I kindly request all my fellow professionals to share their insights on the above, including various heads, limits, procedures, and documents required. I will consolidate these inputs and distribute them to everyone.

Looking forward to your responses.

Regards,
Take care

Hi Vasudevan,

The structure that I have mentioned above has some contents which are exempted from tax, like HRA and TA of rupees 800 are exempted from tax. Apart from this, medical reimbursement of rupees 1250 per month is also exempted from taxes. However, for this, you need a medical bill from each of them separately.

Regards,
Amit Seth.

Hi,

I think I can help you with the Leaves data. You can bifurcate the leaves into two major divisions:

- CL - Casual Leave (Sick, Emergencies, Casual) - 12
- PL - Planned Leaves (Marriage, any planned events) - 10

Every CL per month, which may or may not be used, can't be taken forward to the next month. The CL which is lapsed will not be encashed after the completion of the year (Dec 31st). However, PL will be encashed after a successful completion of the year or will be added to the coming year leaves kitty.

Let me know how you feel about the same.

Thank you.

Dear Amit,

I really need your help. I am working in a Private Limited Software firm in Mumbai since its incorporation on 1.10.07. They offered me a salary while deducting a Professional tax. However, they are not providing any other facilities. Even when I am absent, they deduct it from my salary. I am a senior employee from the old company that was merged to form this new one.

Whenever I try to discuss increments and other benefits, they mention that they have been working on it for the past 8 months. Could you please provide me with a mandatory salary structure for a Private Limited Software firm?

Regards,
Ajay

I am not receiving any other facilities.

Hi,

I am working with a newly formed IT company, which is a Pvt. Ltd. Around 20 employees are working, and their total salary ranges between $8000 to $22000, plus a 7.5% conveyance allowance. Please let me know what the salary structure will be for them.

Thanks,
Grishma

Dear Amit,

I would like to know if mediclaim facility is compulsory for employees who are not covered under ESIC.

Neeraj

Hi,

I am working with a private Ltd. company as a P.R.O. Sir, actually, I want to know how much C & P/L is allowable in a year. Please send me the details about it.

Best regards,
Pradeep Pillai :)

Hi Pradeep.

It varies from company to company. Some companies divide whole leaves into CL and PL. Some companies have a total of 24 leaves.

Hi,

For instance, if I am offered $60,000 per month as the total salary, what should be my ideal salary breakup structure? This would involve considering basic pay, HRA, PF, travel allowance, car allowance, medical benefits, performance bonus, and entertainment allowance. Can someone provide me with a salary breakup structure taking into account these factors?

Thank you.

Hi,

I am working in a company which is a private limited company. My working hours are from morning 10 am to evening 8 pm (1 pm to 2 pm lunch) and they are paying me 4500 per month plus 500 for transportation allowance. They told me that my probation period will be six months, which could be extended to one year. Is this in accordance with the Companies Act of 1956? If not, where can I raise my concerns? Please respond to this in my email [Login to view].

Thanks & Regards

Hi, I need to know how to write, convert the pay scale of a private company to government IDA and CDA formats. This information is required for applying for a government job.

For a small private/partnership firm with 15 employees, is it compulsory to set aside a sum for PF, medical, and other allowances? Will it be okay if the owner only pays basic salary and the traveling allowance, and only these two are mentioned in the salary slips of the employees?

Hi,

I am working with a well-established manufacturing company as a Senior Executive in HR & Admin. I want to know the side effects or disadvantages of not providing annually paid leaves, sick leaves, and casual leaves to employees.

Please answer as fast as possible as it's very urgent.

Thanks in advance,

Geeta

Hi Shashikant Kumar Pathak,

Regarding your query about the mandatory rules for Pvt. Co. to provide HRA, FOT (Fixed Over Time), and OSA (Out Station Allowance), I would like to clarify that as a permanent employee of M/S Tarapore & Co. in Jamshedpur, every employee, whether permanent or temporary, is entitled to receive HRA, FOT, and other allowances. However, in your case, it seems that you are only receiving basic pay and DA to meet the minimum wage requirements.

If you believe that you should be receiving additional allowances as per the rules, I suggest reaching out to the labor department to inquire about the process for making a claim. They will be able to provide you with the necessary information and guidance on how to proceed.

Best regards

Hi, I have started a private limited company in the IT/Software domain. Currently, we have 4-5 employees. For the upcoming financial year, we want to establish a proper salary structure ranging from Director to low-level employees. Could you suggest a structure based on the latest rules or policies? Currently, we will not be providing any medical benefits. Additionally, please advise on the rules regarding PF, including how to initiate them and when to do so.

If possible, please provide two examples of structures with salaries of 20K/month and 60K/month. Your assistance would be greatly appreciated.

Thank you.