How to Break Down Salary Components for Payroll in an Oil Refinery Company?

Hi,

In our company, we are currently paying a salary without dividing it into Basic, DA, RA, TA, etc. However, we provide all of these components as part of the company expenses. We are now planning to create a payroll system. Please help me move forward with this.

For example, the monthly salary given is 13000 INR (nothing is included in this amount). I need assistance in determining the Basic, DA, RA, ESI, PF components.

Our company is an oil refinery private company located in Kerala. Could you please provide information on the current Basic and DA points?

I need guidance on how to calculate the Basic salary and DA. Please show me the calculation methods. Your help is much appreciated.

Thank you.

Understanding Salary Components

Forget about DA and its points. That was meant for the government and large factories a long time ago to allow salaries to grow as general inflation pushes prices up. It is not compulsory or, in most cases, even desirable. What you put in various components is your choice. There is no law or rule for it. But try to make it as tax-friendly as possible (minimize the impact of tax).

There are many discussion threads on salary components; you can search the forum and read them. It will give you a good understanding of how people structure their salaries.