How Can I Implement Salary Bifurcation in My Construction Company? Seeking Guidance!

Dear All, I am working in a construction company as an HR Executive, and we don't have salary bifurcation here. I would like to implement the same. Kindly guide.

Thanks & Regards,
Gayatri

You may bifurcate the salary as follows:

Salary Breakdown Example

Suppose the Gross Salary is Rs. 20,000/- per month. The breakdown should be as follows:
- Basic (40-50%) = Rs. 10,000/-. The basic salary should not be less than the minimum wages as applicable.
- HRA (40% of Basic) = Rs. 4,000/-
- Conveyance Allowance = Rs. 800/-
- Education Allowance = Rs. 200/-
- Special Allowance = Rs. 5,000/-
Total = Rs. 20,000/-

Components for Calculating CTC

To calculate the CTC, the following components need to be added:
- Employer's share of PF
- Employer's share of ESI (ESI is not applicable in this case)
- Bonus
- Gratuity
- Any other reimbursements

With Best Regards

Importance of a Salary Structure

A salary structure is necessary for the following reasons:

• It provides a sense of satisfaction and clarity.
• It is essential for income tax purposes.
• It aids in statutory calculation purposes.

Currently, I am also working in real estate and have introduced a salary structure and salary grades in my company. If you require any help, please do not hesitate to call me.

Regards,
Praveen
[Phone Number Removed For Privacy Reasons]

It's very important as the main component of salary is the basic salary. PF, ESI, and other statutory compliances are calculated based on the basic salary only.

Regards,
Nisha Malhotra