Salary Breakdown Confusion: How Should HR Structure Components Like CCA and LTA?

I would like to understand the salary breakdown and how it should be structured. This includes components such as CCA, medical allowance, LTA, child education, etc. I need clarification on the slab limits and the correct method for segregating these elements in the salary.

Dear,

An example:

In CTC, Salary Distribution can be:
(A) Basic Salary + HRA + DA
(B) Conveyance + Medical + Other / Special Allowance if any
(C) Employers' Contribution for PF (12% of Basic)
Employers' Contribution for ESIC (4.75% of Gross)
(D) Employees' Contribution for PF (12% of Basic)
Employees' Contribution for ESIC (1.75% of Gross)

Gross Salary = (A) + (B)
CTC = (A) + (B) + (C)
Net in Hand = (A) + (B) - (D)

Salary breakup as follows:
Basic - 30%
HRA - 30%
Conveyances - 25%
Medical - 10%
Other - 5%

You can change the elements and values according to your company policies. For more information about salary breakup, please visit:
- https://www.citehr.com/download-list...p&subm it=Go
- https://www.citehr.com/search_new.ph...;amp;submit=Go

Thanks and Regards,
Binu

Can a company bifurcate salary as under:

Gross Salary = Basic Salary + Mobile Allowance + Bonus Amount

I have a serious concern over this practice. In my understanding, a bonus cannot be part of the Gross Salary; rather, it is given in addition to the salary. Whereas, the salary should remain (at least) as:

- Basic (66.66% of gross)
- House Rent Allowance (45% of basic)
- Utility Allowance (10% of basic)

Please share your thoughts on this.

Thanks.