Firstly, you need to know more about PF, ESI, PT, LWF, and all. Most interviewers repeatedly ask about all these.
Salary Split Up
(Percentage may depend upon company norms, sometimes it may change)
- Basic - 60% of salary
- HRA (House Rent Allowance) - 15%
- CCA (Compensatory City Allowance) - 15%
- DA (Dearness Allowance) - 10%
PF (Provident Fund)
- It generally applies to any organization with 20 or more employees.
- Employee Contribution 12%
- Employer Contribution 12%
- The scheme deducts 12% of the employee's basic salary, and the same amount is contributed from the employer's end also.
- Employer's (12% = 3.67 + 8.33) PF Amount divided into two, i.e., Employer's PF Amount (3.67% Of basic salary) + (8.33% of Basic Salary).
- The employee gets a pension on his retirement, or the same is delivered to his untimely death.
- If one's (Basic + DA) is more than 6500, in the sense it's optional... we should make PF for less than 6500.
- If one is more than 58 years old, there is no pension fund for the person.
PT (Provisional Tax)
During a financial year (March 1st - August 31st, September 1st - Feb 28th), we need to make 2 payments (for 6 months).
ESI (Employee's State Insurance)
- ESI Limit is 15000. If one's salary is more than 15000, there is no need to make ESI for the person.
- The employer has to contribute 4.75% of the salary.
- The employee has to contribute 1.75% of the salary.
LWF (Labor Welfare Fund)
- Applicable to any organization with 5 or more employees.
- Rs.20 from the employee & Rs. 20 from the employer as well.
- It's not applicable for Team leaders / Supervisors.
CTC - Cost to the Company
Working Hours - 8 hrs
Should not exceed 48 hrs/week.
Regards