Salary Breakdown Challenge: How Would You Divide $18,500 Monthly?

I wanted to create a salary breakdown for $18,500 per month.

Particulars

Monthly (Rs.) Yearly (Rs.) Gross Pay Components

Basic Salary 7400 88800
House Rent Allowance 2960 35520
Innovative Allowance 1517 18204
Conveyance Allowance 1600 19200
Washing Allowance 2000 24000
Monthly Total 15477 185724

Annual Benefits

Medical Allowance* 0 0
Leave Travel Allowance 0 0
Bonus 1400 16800
Total Annual Benefit 1400 16800

Annualized Retirals

Provident Fund - Employer Contribution 888 10656
ESI - Employer Contribution 735.1575 8821.89
Total Annualized Retirals 1623 19478
Total Cost to Company (A+B+C) 18500 222002

Thank you, Prasant, for a great reply, but 18,500 is the in-hand salary, not CTC. I want to know the breakup for the 18.5k in-hand monthly package.

Current Minimum Wages in New Delhi

Providing category-wise details of the current minimum wages applicable to New Delhi as follows:

Minimum rates of wages in Rupees:

- Per Month / Per Day for All Schedule Employments:
- Unskilled: ₹13,350 / ₹513
- Semi-skilled: ₹14,698 / ₹565
- Skilled: ₹16,182 / ₹622

Clerical and Supervisory Staff

- Non-Matriculate: ₹14,698 / ₹565
- Matriculate but not Graduate: ₹16,182 / ₹622
- Graduate and above: ₹17,604 / ₹677

As stated by you, your company is not covered under PF & ESI, and Professional Tax is not applicable to New Delhi. Therefore, there is no statutory deduction to be made from your salary, and hence you will receive a full salary in hand, i.e., ₹18,500. Instead of opting for any salary breakup, pay a consolidated salary of ₹18,500 per month. Alternatively, if you insist on a breakup, you may subtract any of the amounts shown above applicable to your category from ₹18,500, and the remaining amount can be shown as HRA, Medical Allowance, or Commuting Allowance.

Regards, Suresh

What is the calculation of Privilege Leave? Is it based on Basic + DA or only Basic?

Dear Tushar,

If leave is availed, the employee gets full salary including all allowances. This question arises only for leave encashment. Legally, encashment is payable on Basic + D.A. However, in some establishments, there is no separate component of D.A. Those companies are paying leave encashment either on full salary including all allowances or considering some components/allowances along with Basic salary for leave encashment. There is no uniform policy other than Basic + D.A.

Regards,
Suresh