How Does a 15% Appraisal Hike Affect Your Salary Break-up? Let's Discuss!

Difference in Salary Break-up Post Appraisal

I want to understand if a person has been given a hike of 15% in a performance appraisal, how does it affect the salary break-up? Does the Basic Salary get changed, or is it adjusted in some other heads, i.e., allowances?

For example, a man has a CTC of 4,25,055.
Units - Monthly/Annual
Monthly Basic = 16,240/194,880
Allowances: HRA/Lease, Conveyance, Medical, LTA, Others = 10,710/128,530
Co. P.F. Contribution = 1,948/23,376
Gratuity = 0/9,369
Meal Coupons = 1,100/13,200
Total = 29,998/369,355
Variable Pay = 4,475/53,700
Health Insurance Scheme = 0/2,000
Gross Total (CTC) = 34,473/425,055

He has been given a 15% hike, so what should be the break-up now?

The medical allowance will be fixed at a maximum of 1,250, and the conveyance allowance will be Rs. 800. Therefore, the remaining amount should be adjusted in other components such as Basic Salary, HRA, and other allowances.

Thank you.

Salary Adjustment Post Appraisal

Certainly! You should increase the basic salary if the gross salary is increasing. There is no standard calculation for the basic salary, but you should ensure that it is not less than the amount specified in the Minimum Wages Act. Generally, the basic salary is managed as 50-60% of the gross pay.

If you need any further assistance or have more text you'd like me to review, feel free to ask!

Regards

Salary Breakdown Inquiry

Please, I want to know if a person has a salary of $60,000 per month, what could be the salary breakdown or salary structure?

Regards,
Anila.hr

If anybody received an X% increment on their salary, it means it should be based on their gross salary but will not affect their medical reimbursement (Rs. 1250) and conveyance (Rs. 800) as those amounts are fixed. However, other components such as Basic, HRA, and Special Allowance will be affected. If the individual is earning more than Rs. 15,000/- per month, there may be a chance to incorporate this change by reflecting the increased amount in the form of food coupons. Please keep in mind that PF, PT, TDS, and ESIC will be affected.

For further information, please let me know.

Regards,
Ashok
[Phone Number Removed For Privacy Reasons].

Understanding Salary Break-up Structure

It's a great pleasure to receive your kind response. Generally, my question is regarding the pay slip structure. The salary will be 60,000 per month. Could you please explain how we can break up the salary and elaborate on the components your organization uses? I appreciate your assistance.

Thank you and have a good evening.

Regards,
Anila
HR