Please let me know the salary breakup for 40000 CTC?

Dear HR PROFESSIONALS, Please let me know the salary breakup for 40000 CTC

There is no such standard rule to make the break up. Break-up should be prepared in such a way so as to minimize the tax liability. To minimize the tax liability some factors are HRA, Food voucher, Travelling, House Furnishing Allowance, Medical Reimbursement, Children Education, Newspaper and periodicals etc. Please consult the Tax consultant to make the breakup to minimize the tax liability.
You can split salary as follows:
Basic - 60% of Gross.
HRA - 25% of Basic.
Conveyance - Rs. 800
Refreshment - Rs. 1000
Telephone - Rs. 1000
Other allowances
Hope this will help you. Kindly cross check with other salary break up.

Dear Shabina,
Salary breakup of Rs.40000/-
Basic Salary - Rs.16000/-
HRA - Rs. 8000/-
Conv.Allowance- Rs. 4000/-
City comp. Allowance- Rs. 4000/-
Mediclaim Allowance- Rs. 4000/-
Travelling Allowance- Rs. 4000/-
Regards
Radhey
9289028034

I THINK BREAKUP FOR RS.4OOOO SHOULD BE LIKE THIS..
BASIC SALARY -45% OF 40000 THAT IS 18000
HRA-40% OF BASIC-7200
EDUCATION ALL-200
CONVEYANCE ALL-800
MEDICAL ALL-1250
OTHER ALL-12550

total ctc 50% should be Basic,Basic 50% should be HRA, Travel 800 and remaining to be shown in special allowance

Hi Shabina,

Let me a give you an idea of break-up for any CTC assigned to employee

Usually we Take :

Basic salary : 50% of CTC (No thumb rule)

HRA : 50% of Basic salary for "A" class cities & 40% for "B" class cities P.S. cities under minimum wages act

Conveyance : if a person's gross amount already shows that its "taxable" you can't manipulate it abruptly to make it non-taxable.i.e. try to fix

conveyance in the ratio of tax slab ( for non-taxable amount keep it <=800 per month,9600 is tax-free amount)

Rest of the amount should be adjusted accordingly in heads of Medical allowances,Education Allowances, Special Allowances etc.

You can reduce the net salary amount by bifurcating the part into Gratuity,Bonus & Earned leaves per months but more or less its a kind of malpractice & I won't advocate it.

Note : try to keep the amount of Basic salary in such a way that it won't cost too much in terms of contributions under various Labour acts.

i.e. EPF,Bonus,Gratuity etc.

I hope this could give you a better idea what sorts of point should be taken into keen consideration while preparing a salary break-ups.

Regards,

Manish Gupta

Dear Shabina,
My dear friends have suggested the salary structure keeping in mind the income tax liability but some of my friends have not considered the liability of PF(although can be avoided within the available act for new members only). It is advisable to include the pf. There is no thumb rule for the break-up. However, as a sample, the break-up of Rs. 40000/= CTC can be like detailed below.
Basic Pay 24000
PF 3266
HRA 7200
Food voucher 2500
conveyance 800
Medical 1250
Education reimbursement 1500
WITH KIND REGARDS
VINAY

Dear Shabina,
You can take 40% as basic of CTC i.e.
Basic = 16000
HRA = 8000
Transport Reim = 5000
Medical Reim = 1000
Other Allowance = 5780
Grsoss Salary (A) = 35780/-
PF @ 12% = 1920
LTA @ 10% =1600
Bonus = 700 (20% of Basic for Bonus calculation i.e 3500/-)
Total (B) = 4220
CTC (A+B) = 40000/-
Hope It will fullfil your querry