Salary Slip Breakdown: Can Someone Explain the Components and Calculation Rules?

Understanding Salary Slip Components

Can anyone please tell me in detail what the meaning of all the different heads available in a salary slip is? Also, could you tell me if there are any rules to calculate what proportion of HRA and other allowances should be in relation to the Basic salary?

Thanks,
Samir Shah

Pay Slip Components
Pay slip contains the following items:

- Basic: 45% of Gross Salary.
- HRA: 40% - 50% of Basic (depending on the cities)
- Conveyance: 800 (fixed)
- Medical Allowance: 800 (fixed)
- Special Allowance: as per the company norms
- EPF: Employee (12% of Basic) and Employer (12% of Basic) Contribution
- ESI: Employee (1.75% of Gross Salary) and Employer (4.75% of Gross Salary) Contribution

Thanks,
Yogi

Medical allowance is not fixed at Rs. 800; it's Rs. 1250 (from a tax perspective), and the special allowance will always be the balancing amount, which is taxable.

Regards,
Sunil