How to Structure Salaries in a Small Startup: Seeking Advice for Bangalore-Based IT Firm

I joined a startup IT company with almost 10 employees. So there are no PF and other mandatory deductions, I hope.

Salary Structure for a Startup IT Company

How should I make the salary structure, and what should be its important components? Suppose the gross salary is Rs. 4,00,000 with a 1L annual bonus. What should be the breakup for the Bangalore location? Please help me.

Regards

I feel it is better to register for PF contribution. If you need, please share your email ID with me so that I can share the wage structure with you. :)

The following components are basically used by many IT companies:

1. Basic - 40% or 50%
2. HRA - 50% (Metro) 40% (Non-Metro)
3. Conveyance - ₹9,600 per annum
4. Medical Allowances - ₹15,000 per annum
5. Telephones & Internet - up to company standard
6. Food Coupon - Max ₹2,600 per month
7. Gratuity - 4.81% of Basic
8. Leave encashment
9. LTA - ₹35,000 per annum

Deductions:

- Profession Tax (As per State PT Slab)
- Salary Income Tax

I hope this will help you.