How Do I Break Down a Monthly CTC of 18050 into Basic, HRA, and Other Components?

Hello all,

I am Divya Anand, working as a Senior HR Executive in Karvy. Can anyone tell me how to make a salary breakup? If someone is getting 18050 (monthly CTC), what is the percentage of the salary breakup for the below-mentioned headings?

1) Basic
2) HRA
3) Conveyance
4) Special Allowances
5) Medical
6) Ex-gratia

Kindly help to revert.

Thanks & Regards,
Divya

Salary Breakup Calculation

We can answer this question as 50% of the total salary is treated as Basic + DA by PF enforcement officers. So, in no case can it be less than that.

HRA Calculation

HRA can be taken in line with Income Tax up to 50% of Basic + DA if in a metropolis; in other cases, 40% of Basic + DA.

Transport Allowance

After this comes the transport allowance in Income Tax; it is allowed up to Rs 1600 per month.

So your distribution can be: Rs 18050 x 50% = Rs 9025 is Basic + DA, Rs 9025 x 50% = Rs 4512 is HRA, Rs 1600 is transport. The rest you can divide according to your convenience. Contact us at [Email Removed For Privacy Reasons] for a detailed answer.

Please remove Medical & Ex Gratia Components.

Employees whose Gross Salary is below Rs21,000/- come under the purview of ESI Act, 1948 & The Payment of Bonus Act, 1965.

Please find out the Minimum Wages applicable to your establishment to determine Basic & DA. Anything paid above the minimum wages can be put into other components.

Please find out what your minimum wages are for your zone. Accordingly, you can break up the salary to acquire CTC as follows:

1. Basic
2. Special allowance (DA)
3. HRA 10% or as prevailing in your zone
4. PF 13.36% of basic + DA
5. ESI 4.75% of gross salary (basic + DA + HRA + traveling allowance)
6. Bonus 8.33% of basic + DA
7. Leave salary 4.81% of basic + DA + HRA
8. Gratuity 5% of basic + DA + HRA
9. LWF 6 Rs
10. Paid holiday 1.3% of basic + DA + HRA

Thank you.