Salary Breakdown Dilemma: How Should We Allocate Components for Our RMC Plant Employees?

Hi all, we have started a new RMC plant near Bangalore. We need to determine how to provide a breakdown for all salary holders. What percentage should we allocate to each component (basic, HRA, conveyance, etc.)?

Salary Breakdown for Employees

For example, let's say we have 25 employees with salaries ranging from 8000 to 80000. How should we allocate the breakdown, and which components should we select? What percentage should we designate as basic salary? Are there any issues with the special allowance component? How should we calculate PF? Taking 60% of the gross salary could be a burden for the employer.

Please advise on how to prepare salary calculations for my employees.

Regards, Prasan

Hello there,

You can fix basics at around 50-60%, and HRA depends on the location. Typically, you would follow a range of 30%-50%, with the rest of the components considered as different allowances such as transport, food, and others. PF is fixed at 24%, which includes the employer's share. ESI is applicable if the employee's gross salary is equal to or less than 21,000. Deductions for PT are based on the state government slab.

Regards,

Nijanthan C

Good afternoon Team,

Is a bonus also added in the salary breakup? Because in my organization, bonuses and gratuity are not included in the CTC or salary breakup.

If it is CTC, it should be included; need not be in monthly breakup.

You need to take basic, DA, and HRA as per the minimum wages prescribed in your state. You may keep 200-300 rupees more in basic compared to the current minimum wages. This will help you reduce the burden of PF when calculating CTC for the employer.

Dear all,

The posts are informative. Thanks for the same. I have no idea about CTC, gross, etc. I am a beginner. Please share with me the salary breakup for Rs 4.5 lakhs per annum in a way that provides maximum tax exemptions and maximum take-home pay for the employee. This is for a sales manager position in a loan-providing industry based in Kerala in a semi-urban area.

Thanks to all in advance.

Dear all,

Please share with me the salary break-up for Rs 4.5 lakhs per annum in a way that provides maximum tax exemptions and maximum take-home pay for the employee. This is for a sales manager position in a loan-providing industry based in Kerala, in a semi-urban area. Please assist me with this.

Thanks to all in advance.

Dear all,

Please share with me the salary breakdown for Rs 4.5 lakhs per annum in a way that provides maximum tax exemptions and maximum take-home pay for the employee. This is for a Sales Manager position at a loan-providing company based in Kerala, in a semi-urban area. Please assist me with this.

Thanks to all in advance.