How Do You Break Down CTC into a Salary Slip? Seeking Help with Format and Components

Hello HR Professionals,

Can anyone help me with the format of salary breakup and payslip when we consider the CTC of an employee with the below components:

- Basic
- HRA
- Medical allowances
- Convenience allowances
- Special allowances
- LOP
- Employer PF
- Employee PF
- ESI (for employees with a salary <21000)
- Professional Tax

Thanks in Advance!!!

Regards, Ramya

Dear Ramya, in the salary breakup/CTC, LOP cannot be a component. It can be part of the payslip because if the employee is not eligible for leave as per the company policy, they would be put on loss of pay.

Salary Structure Components

In your salary structure, make the components Basic, HRA, and Conveyance after discussing with your superiors, Accounts, or CA, as some points like HRA, Conveyance, and medical are necessary for calculating IT benefits. There are slabs for EPF, ESI, and PT; please review the enactments and implement.

In general, Basic can be 60% of the gross, HRA can be 50% of Basic, and the rest can be decided upon.

Thank you.