Dear Suma,
Each company having their own ways to calculate the Salary,there will be some fixed and some variable compnonets
Components of Salary Breakup
--> Basic Salary - The actual pay you receive for rendering services to the company. This is a taxable amount
--> Dearness allowance - A taxable amount, this is paid to compensate for the rising cost of living.
--> House rent allowance - 50% of salary (basic + DA) if residing in a metropolitan city, or else 40%
--> Conveyence allowance - Paid for daily commute expenses. Up to an amount of Rs 800 per month is exempt from tax.
--> Meal coupens
--> Telephone/Mobile bills
--> Medical allowance - Some companies offer medical care through health facilities for employees and their families. The cost of providing this benefit to the employee could also form part of CTC.
--> EPF - Employers contribute an equal 12% to the provident fund account.
--> Gratuity - Companies manage gratuity through a fund maintained by an insurance company.
--> Leave Travel Allowance - It is the cost of travel anywhere in India for employees on leave. Tax exemption if allowed twice in a block of four calendar years.
--> Insurance benefits
--> Fixed bonus - Paid on the basis of employee performance, either monthly or in most cases annually, it is a fully taxable amount.
-->Variable bonus - Complete bonus amount is paid only on 100% achievement of target, nevertheless it still is included as part of your CTC.
Regards,
Narayan
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