Understanding Salary Breakup: Can You Explain the Components and Deductions?

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.

Salary breakup considerations

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

Regards, S K Bandyopadhyay

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%).