Understanding Salary Basics: Can Anyone Guide Me Through the Essentials?

Hi everyone,

Please, can anybody help me out to guide me through the full knowledge of salary making, starting from the basics?

Ankur

I am a student of NDIM in the 3rd semester, pursuing MBA in HR. Our college is not attracting good companies for placements. Only consultancies are visiting, and they are not well-known, offering low salary packages. I have uploaded my CV on naukri.com and other job portals, but I am only receiving calls from consultancies. I dislike the idea of joining a consultancy and working in recruitment there. What should I do?

Also, could you provide me with a comprehensive understanding of salary structures?

Dear Ankur,

The issue of salary is not a complex one. You have to consider basic salary, HRA, Conveyance, and other allowances, which together form the gross salary. Some companies may provide additional benefits like medical allowances, which need to be included in the salary bifurcation. Understanding the breakdown of the salary is crucial as it is based on the CTC agreed upon with the employee.

Once you have identified the salary components, you need to deduct PF, ESI (if applicable), professional tax, and any outstanding loans or advances. This deduction will lead to the net salary of the employee. PF is calculated based on the basic salary earned, while for ESI, the basic salary, HRA, and other allowances are taken into consideration. The PF deduction rate is 12%, and ESI deduction rate is 1.75%.

If you need further clarification, feel free to email me at mprabhakarrao@rediffmail.com.

Best wishes,
Prabhakar Rao M.

Hi Divya,

Post your question in another section. For example, if you want to talk with a senior, then go to the "Talk to Senior" section. If you want to know about vacancies, go to that section. Do not post your question where something is already being discussed; no one will reply to you here. It's better to post your question in the right section.

Thanks,
Sushma

Hello, it's Rahul here. Can anyone tell me how to determine the proper salary for an employee? For example, if someone is earning $10,000, what would be the salary structure?

Dear all,

Please be specific about the facilities you offer, aside from the basic HRA and other benefits. Thank you.