Curious About Salary Breakdowns in Lucknow? Let's Discuss CTC, Deductions, and More

Hi Everyone, I'm hoping to better understand the typical salary structure for companies in Lucknow. Specifically, I'd like to clarify the following:

- Breakdown of CTC (Cost To Company)
- Gross salary
- Net Pay vs. CTC
- Understanding Deductions
- Statutory Bonus
- TDS

Any insights you can share about the Lucknow market and these salary components would be greatly appreciated. Thanks!

Hi Aishwarya,

Currently, there is no rule mandating standard breakups in the salary structure.

Deciding the wages/salary of employees

- Have Basic & DA, which should not be less than the scheduled minimum wages.
- Allocate 40% of the HRA component from the basic wages.
- Other components can be considered as various allowances, including tax-free allowances, depending on the total wages of the employee.

Deductions

- No PT for UP; hence, it's 0.
- ESI at 0.75% on total wages if the gross salary is up to 21,000/-
- EPF at 12%, which might be restricted to the ceiling limit of 15,000/-
- TDS as applicable

Company contributions towards gratuity, ESI, EPF, insurance, etc., may be part of CTC.