Salary Breakdown Proposal: How Should We Set Basic and DA Limits for Everyone?

Can you let me know the heading breakdowns you propose with a minimum BASIC + DA for everybody? Can we set the maximum at 6500 for BASIC + DA? Can you please send the chart immediately so we can discuss?

Remember that there is no fixed component for calculating the salary break-ups. Besides, you may consider the following:

Basic Salary Component

- Basic: Can be between 40% - 50% of the Gross. There is always a need to keep in mind that some organizations consider some or all components in the salary to be Basic.

You have to discuss with your HOD to arrive at a fixed percentage to structure the salary cog. Also, statutory liabilities like PF, Gratuity, and Bonus are taken into consideration of CTC.

Regards

I too agree with Ms. Sharmila. The salary structure varies from company to company based on their policies. Some of the common pay heads used are:

Common Pay Heads

1) Basic - 35% - 50% of Gross
2) HRA - 40% of Basic for Non-metro & 50% of Basic for Metro
3) Con - Max Rs. 800/PM which is a maximum of Rs. 9600 PA
4) Medical Reim - Max Rs. 1250/PM which can be a maximum of Rs. 15000 PA
5) Spl Allow - The balance of Gross will be provided as a Special Allowance

Statutory Contributions

1) PF
- Employee Contribution - 12% on Basic
- Employer Contribution - 13.61% on Basic

2) ESI - Applicable to employees whose Gross Salary is less than or equal to Rs. 10000
- Employee Contribution - 1.75% on Gross
- Employer Contribution - 4.75% on Gross

3) PT - It varies from state to state

Salary Calculations

- Net Salary = Gross - PF (Employee Contribution) - ESI (Employee Contribution) - PT
- CTC = Gross + PF (Employer Contribution) - ESI (Employer Contribution)
- Gratuity = Basic * 15/26 - It is payable to the employee who completes 5 years of service in the organization. It can be shown as a part of CTC.

If employees come under a high salary, then you can again split up the amount in Special Allowance as:

1) Food coupons
2) Car Hire
3) Petrol and Maintenance for Car
4) LTA