Salary Structure Dilemma: How Do I Frame It and Calculate DA Correctly?

srikumarmsw
Hi,

Please help me in framing a salary structure and understanding how to calculate DA.

Regards,
Srikumar
Amitmhrm
Hello Sri,

The contents of the salary breakup are as follows. You can prepare it according to your convenience. 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 provided to employees 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 + ESIC
- Annual total cost is also referred to as CTC.

I hope this clarifies everything. Feel free to ask if you have any queries.

Regards,
Amit Seth
Aru
Hi Srikumar,

Do you know you can calculate 50% of the basic?

For example:
If the basic is 3000, then the DA is 1500.

Salary structures vary for different companies.

Regards,
Harini
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