Salary Structure Confusion: What Do CCA, SBP, and HRA Really Mean?

Understanding Salary Structure Components

Kindly help me. I want to know what CCA and SBP are in salary structure design. What are the mandatory components in salary bifurcation? Is HRA a must to include?

Please reply.

Regards,
Shweta

Dear Shweta, Firstly, gross salary includes basic salary, D.A., HRA, conveyance allowance, PF, ESI deductions, and other deductions such as canteen charges and fines, etc.

Thanks & Regards,
R. Yogabalan

Understanding City Compensatory Allowance (CCA) in Salary Structure

CCA means City Compensatory Allowance in salary structure design.

Mandatory Components of Salary Structure

1. Basic
2. DA
3. HRA
4. Medical Allowance
5. Conveyance Allowance
6. Other Allowance

You can design the salary structure in this way.

Thanks and regards.

Can anybody help me in calculating salary? If the CTC is 8500, how do I go about calculating the salary components:

- Basic
- HRA
- Special Allowance
- ESI 4.75%
- PF 12%

Please, it's very urgent.

Dear All,

Thank you very much for your replies.

Dear Atul, could you kindly tell me what DA is and how it is calculated? Medical Allowance is maximum 1250/-. What is the minimum criteria? Can anyone tell me what SBP is? ESI is mandatory for employees with a gross salary of less than 10000/-. What about employees with a higher salary?

Kindly reply.

Regards,
Shweta

Dear Shweta,

DA stands for Dearness Allowance, and it is based on inflation. This is revised from time to time as inflation increases.

The maximum permissible limit of deduction under the Income Tax Act, 1961 for Medical allowance is ₹15,000.

If anyone can tell... What is SBP? I don't know.

ESI is mandatory for employees with a gross salary of ≤ ₹15,000.

Give me your email id, and I will send you more details on the same.

Understanding Salary Components: CCA and SBP

CCA stands for City Compensatory Allowance.

Special Performance Pay (SBP)

SBP or SPP refers to Special Performance Pay.

Housing Rent Allowance (HRA)

HRA is not a must but is beneficial to employees for tax exemption.

As per my knowledge, SBP stands for "Skill-Based Pay," which is a variable component.