Query On Salary Breakup With Various Components

Hi everyone,

It would be of great help if anyone could share a basic idea on salary breakup with various components and deductions made, along with the percentages of deductions from each part.

Regards,
Soumajit.

See PF enforcement officers maintain a fixed ratio that they assume as Basic + DA portion of the salary. They take 50% as a fixed slab. Now, HRA according to Income Tax is 50% of Basic + DA. Transport Allowance is ₹1600 per month allowed under income tax. So, you can get an idea of how we do the segregation.

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Salary breakup is not a simple approach. It varies with the level of salary - IT-friendly pockets, PF compliance, ESI compliance, Minimum Wages compliance, cost of Gratuity, Bonus Act compliance, etc., and ultimately Total Cost to Company. It also varies from organization to organization. You may study the salary breakup of your similar type of organization then try your best to take a scientific approach for your own organization.

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ESI Employee Share @ 12% on Gross Salary. EPF Employee Share on Basic + DA + VDA @ 12%. PT as Per Slab.

Please let me know if you need any further assistance.

ESI Employee Share should be read as 4.75% (wrongly mentioned as 12%).