How Do I Break Down Rs. 6500 Without ESI or PF Deductions? Seeking Advice!

Hi,

Can anyone help me with the breakup of Rs. 6500 without any ESI or PF deduction?

Thanks

BASIC - Rs. 3267
HRA - Rs. 1633
CONVEYANCE - Rs. 1600
GROSS - Rs. 6500

In the provided text, I have corrected the formatting to ensure each component is listed on a separate line. Additionally, I have added a single line break between each item for better readability.

Hello,

The salary that you are showing is much less than the minimum wages as per the Karnataka Minimum Wages Act. I am not sure about your intention for further breakdowns.

Dear Redak,

Mr. Jeeva is correct; the structure and breakup of any wages should not be less than the specified minimum wages set by the state or central government. Salary breakup is typically done to reduce certain liabilities such as PF, Bonus, PL encashment, and Gratuity. Additionally, it can increase the cash-in-hand salary of the individual. However, according to a Supreme Court decision, wages must adhere to the applicable minimum wage structure.

Please let me know if you need further clarification or assistance.

Thank you.

I do agree, salary should not be less than minimum wages. However, minimum wages differ from state to state, and some follow the central sphere. In states like TN, minimum wages defined by the State Govt vary from industry to industry.

@Redak just asked for a breakup, and I provided it. It is his/her duty to check the minimum wages his/her company follows before implementing.

How about apprentices under the Apprentices Act or under the Central Government Skill Development Centre? They receive a stipend and do not need to be split as it will not attract ESI or PF.

@pasupathieswaran,

No need to break up the stipend. FYI, as per the latest amendment in the Apprentices Act, the stipend should be paid to the bank account of the trainees.