If the employees salary comes under Income Tax bracket i.e. Taxable salary , then the HR should read the I.T. Exemptions and its limit and accordingly work out the Salary Breakup under few categories as under
1) Basic
2) HRA
3) Conveyance Allowance
4) Medical Allowance
5) Education Allowance
6) Uniform Allowance
7) Laundry Allowance
8) Food Allowance
9) Spl./Other Allowance etc