I have an exciting idea for all of us, what we can do is........... lets share everyones' companies salary structure and let us also find a solution on how different co. is using salary structure to save emps' taxes.
I am starting from my input first............
First we decide the CTC of the person would be??
Break up of CTC.
Basic - 40% of ctc
HRA - 50% of basic
Tpt All - (800 if CTC less than 9000, 1000 if ctc less than 15000, 2000 if ctc above 15000)
Medical All - (optional if ESI is paid, else 10% on basic)
Special All - (ctc - pf-esi- bonus - Basic - hra - tpt all - medical all)
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Gross Salary
PF - 12% on basic
ESI - 4.75% on basic (optional, if medical all paid )
Bonus - 10% on basic and limit is upto 500
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CTC
Net Salary (in hand ) = Gross Sal - PF - ESI (1.75% on basic)
This is the structure used by y co. but we are not giving any think in which emp. can save taxes.
I need suggestion from experts on how to design the salary structure so that emp. can save income tax.
Others, please contribute......./ Share yours co. salary structure, this would be good learning on compensation/ Salary issues.
- Sanjukta