New to HR: How Do I Create Salary Slips for Employees Earning $10,000?

Hi all, I have newly joined a new firm and need to take care of all HR activities. My MD has asked me to make salary slips for employees whose salary is $10,000. Please provide me with knowledge on preparing payslips.

Regards, Sandip

Dear Sandip, please find the salary slip format attached.

If the salary is Rs. 10,000/-, the breakdown is as follows:

Basic Salary
- 40% of 10,000 = Rs. 4,000 (50% of basic in case of metro cities)

HRA
- 40% of Basic = Rs. 1,600

Conveyance
- Rs. 800 (fixed)

Special Allowance
- Rs. 3,600 (remaining amount)

Deductions
- PF - 12% of Basic = Rs. 480
- ESIC - 1.75% of gross = Rs. 175
- Professional Tax - Rs. 80

Regards,
Kumar

I have a query. If someone is on leave for 10 days (without pay), does the basic salary change or does it remain the same? I mean, if someone's salary is $10,000 and the basic salary is $4,000, then what happens on leave without pay days? How do we calculate the working days' salary?

Regards,
Meena

Salary is calculated based on the number of days present at work; this also applies to the Basic salary, which will vary depending on the number of days worked.

Example Calculation

Here's a short example:

- Basic salary: 10,000
- Total days: 31
- Days worked: 20
- Days absent: 11

Calculation:

Basic salary = 10,000 / 31 * 20 = 6,451.61

I hope this clarifies your doubt. For further clarification, please revert to us.

Regards.