Salary Breakdown Dilemma: How Do You Legally Divide 30K for Basic, PF, ESI, and HRA?

chaitanyapnk
Can someone help with "how to divide salary"? For example, if the salary is 30K per month, how should it be divided for Basic, PF, ESI, HRA, etc., according to the law?
kumarviju
Salary Breakup Details

Please find the breakup below:

- Gross: 30,000
- Basic: 40% of Gross - 12,000 (50% of Gross in case of metro cities)
- HRA: 40% of Basic - 4,800
- Conveyance: 800 (Fixed)
- Medical: 1,250 (Fixed)
- Special Allowance: 11,150 (Remaining amount)

Deductions:

- PF: 12% of Basic - 1,440
- ESIC: If Gross salary is more than 15,000 INR, then they are not eligible for ESIC
- Professional Tax: 200

Regards,
KUMAR
ankitchaturvedi
First of all, I would like to appreciate Kumar for answering your question in a very simple and easy process.

Yes, Basic, HRA, Conveyance, PF, and ESI are according to the law. However, Medical, LTA, and Special Allowance are as per the company's policy.

Thank you.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute