New HR Executive Seeking Simple Salary Calculation Format for Small Company

Hi, I have recently joined as an HR Executive in a small company with 25 to 30 employees. Could anyone help me in preparing the salary in a simple format? Currently, we only have the basic salary component and do not offer PF, ESI, HRA, etc. I would appreciate it if someone could share a format to calculate the salary with leave deductions.

Thanks

Hi, thanks for your reply. Could you please forward me the formula for that? We deduct for more than one day's salary, and it would be fine for me if I get the formula for that.

Attachments Provided

Please find the attachments:

1. With PF deduction
2. Without PF, just simple salary.

Thanks.

I'll suggest you make a compensation policy first. Yes, it will take time, but without a policy in HR, you will need the help of others at every step. Also, apply for ESI & PF as soon as possible.

Compensation Policy Considerations

In the compensation policy, you will have to decide on a few things like:
- Grade of employees
- Basic pay as per the grade
- Conveyance allowance as per the grade
- HRA
- Other allowances.

Regards

Salary Sheet Queries

I have some doubts regarding the salary sheet with PF. I hope I can ask and clear my doubts.

1. In the Basic salary, you have used the formula 1200/D4*F4. Why have you taken 1200? What if different people have different basics?

2. In the DA column, it is 900. Where does this number come from, or is 900 the standard amount? What is it based on?

Regards,
Hansa Vyas

Dear Mr. Hansa,

1. 1200 is used as an example. If it's other than 1200, then the formula is the same: total days minus absent days.

2. Daily allowance of 900 is also used as an example; it's not standard.

Please review the attached document for more details; it is very well-explained. I downloaded it from this forum.

Thanks,

Regards

If you use the attached sheet, your work will be very easy.

The simple format for salary calculation with necessary formulas, including PF, ESIC, and PT. If it's not necessary for you, you can delete columns. It may fulfill your query.

Regards, Krishna Murthy
Bangalore

Hi all, I have been working for a sales company. In our company, we don't have a proper payroll format. Please suggest to me the proper salary format. Please shed light on how to calculate Basic, HRA, DA, Medical Reimbursement, and Special Allowances. Is it necessary to provide DA and conveyance for all categories of employees?

Thanks

Hi,

I recently joined a small company with less than 20 employees as an HR executive. I wanted to inquire about the PF clauses. Is PF applicable to this company? If yes, how should I mention those clauses in the appointment letter?

Also, could you please provide me with a sample format of an appointment letter that includes TDS, PT, and PF rules mentioned in it?

Thank you.

The simple format for salary calculation should include necessary formulas, including overtime (OT), without deductions for ESI and PF.

Thank you.