Dr.Shinto,
Fixing salary, creating breakups and then to process it should follow numbers of labour laws.
Salary should be fixed equal or above to the minimum wages of the state.
Once it is done, then you need to create salary breakup. Eg.
Basic=50% of gross or minimum wage whichever is higher.
HRA=40% for non metro and 50% for metro cities.
TA=800/1600
Medical = 1250
Special = Rest amount of gross.
Deduction
PF=12% of basic
ESI=1.75% of gross.
Pl.note. PF is applicable only if basic is equal to or less than 15000.
ESI is applicable only if gross is equal to or less than 15000.
The above structure is very basic structure. However there might be other kinds of deductions like PTax, if applicable and TDS. The tax liability can be decreased with tax-saving salary structure.
So for step by step and detailed method and to help you to create payroll sheet , you may write to [Login to view]