How Do I Add Dearness Allowance to Our Salary Structure? Seeking Advice!

nastiya_m
Dear All,

Please help me understand DA and how to include it in our salary breakup because we don't have DA as a part of our salary.

Regards,
Nastiya
anandbohara
Hello to all HR,

City HR is very useful to all HR executives like me.

I have joined a company recently as an HR officer. Now, I have to define the salary structure that includes:

- Basic
- HRA
- City compensatory
- Special
- Etc.

I cannot decide on the percentage to deduct from the salary. I am thinking:

- Basic: 40% of gross
- HRA: 40% to 50% of Basic
- City compensatory: $700 fixed
- Conveyance Allowance: $500 fixed
- Special: Balance
- 12% PF - Basic Planning to start
- Professional tax deduction just started

I wanted to create a salary structure that suits our small-scale company and complies with the law. I am confused because our advocate says a minimum of approximately $4000 salary should be there, but it is not possible for me. Some employees are getting $3000/$3500/$4000/$5000/$7000/$8000/$10000/$12000, so not all fall within the $4000 range. If we decide to implement a formula that is 40% of the gross basic, then the basic will be very low.

Please suggest.

If all the above is related to the area, then I am from Hatkanagle, Dist. Kolhapur, Maharashtra.

Please reply. Thank you,

Anand Bohara
HR Officer
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