Struggling to Find a Percentage-Based Salary Breakup? Let's Discuss How to Tackle This!

susmitha velagapally
Hi all, can anyone please post the salary breakup procedure (percentage-wise)? I couldn't find it on a percentage basis in Cite HR. Can someone please help me out?

Thank you.
8Mohan8
Calculation of CTC

Usually, the calculation of the CTC is as follows:

(1) Basic: 35-40% of gross salary
HRA: 40% of Basic
Conveyance: Rs. 800 (Fixed) - tax limits
Medical: Rs. 1250 (Fixed) - tax limits
Special allowance: Balancing amount
Total of (1) constitutes - Gross Fixed

(2) Gross benefits like:
PF - 12% of Basic & DA
Gratuity: 5% of Basic & DA
Lunch
Insurance
LTA
Total of (2) constitutes - Gross Benefits

Sum total of (1) & (2) constitutes CTC.
pon1965
There are no standards in terms of percentages. Normally, 40% of the CTC may be apportioned as Basic salary. The higher the basic salary, the more advantageous it is for employees as it allows for a greater contribution towards PF and other retirement benefits. For non-metro areas, 40% of the basic salary can be designated as HRA, while in metro cities, 50% of the basic salary is allocated as HRA. This HRA is tax-exempt for the amount exceeding 10% of the basic salary, provided rent receipts are submitted.

Conveyance allowance - Rs. 800/- per month (tax-free, no proof required), Medical - Rs. 1250/- per month (tax-free subject to production of bills), Child Education Allowance - Rs. 100/- per month per child (maximum 2 children, tax-exempt), Food coupons - Rs. 2700/- per month (tax-free in FY 2011-12), Gift vouchers - Rs. 5000/- per annum (tax-exempt). Any remaining amount may be categorized as a special allowance.

PF - 12% may be deducted from the basic salary towards employer contribution if it is part of the CTC.

Regards
shekharvarma2606
Hi there, can I freeze my basic salary at 6500/- per month? In my organization, more and more employees are interested in the take-home salary. What happens if we freeze the basic salary at 6500/- without a component of DA? Please suggest.

Thank you.
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