Understanding Salary Types: Is a Monthly 3500 Payment Considered Consolidated?

pujarikavita
What are salary types? What is consolidated salary? If an employee gets 3500/- per month, then is it considered consolidated or not? Also, what about deductions?
Amitmhrm
Hi Kavita,

The contents of the salary breakup are as below, and you can prepare it according to your suitability. HRA would be 50% or 60% of the basic salary.

- Basic
- HRA
- CCA - 825/- is exempted from tax
- Other Allowance
- Mobile Reimbursement
- Medical Reimbursement of 1250/month is exempted from tax

Gross Per Month = Sum of all the above.

Gross Per Annum = 12 * Gross/Month

PF Contribution = 12% of Basic/Annum

ESI Contribution = 4.75% of Gross/Annum

Medical = The mediclaim facility provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Anything exceeding this will be covered under Mediclaim or as per company policy.

EX-Gratia/Bonus = A fixed amount as Bonus

Annual Fixed Gross Cost = Gross/Annum + Ex-gratia

Annual Total Cost = AFGC + PF + ESIC

Annual total cost is also known as CTC.

Apart from this, Food coupons, Holiday packages, and Furnishing items are included in their CTC.

I hope this helps clear some of your queries.

Regards,
Amit Seth.
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