How Do You Break Down Monthly Salaries into Components Like Basic, HRA, and More?

Hi all,
We want to implement salary breakup for our employees. Please guide me on breaking up the monthly salary into various function like Basic, HRA, TA, Meal coupons PT, PF,TDS… etc.
Thanks in advance.
Agrani

Hi Agrani,

The contents of the salary break up are as follows. You can prepare it as per your convenience. HRA would be 50% or 60% of the basic.

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 is provided to employees who are not covered under ESI as the maximum ceiling for ESI is 10,000/Month. If the amount exceeds this, it will be covered under Mediclaim or as per company policy.
Ex-Gratia/Bonus = A fixed amount as a bonus
Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
Annual Total Cost = AFGC + PF + ESIC
Annual total cost is also known as CTC.

I hope it is clear now. If you have any queries, feel free to ask.

Regards,
Amit Seth.

Dear All,

Kindly find attached on the above-mentioned subject. Hope the same will be of good use.

Regards,
M. Peer Mohamed Sardhar

Hi Mr. M. Peer Mohamed Sardhar,

This is a really good salary structure that will help us. Could you please help me find a similar one for a Pharma & Biotech company? I would be grateful to you.

Thanks in advance.

Thanks,
Uttama