Salary Structure for Manufacturing Pvt. Ltd.: How Do You Break It Down?

charu1605
Hi all, I want to know the best salary structure or a salary bifurcation for a manufacturing Pvt. Ltd. company. Please help me.

Thanks and Regards,
Charu Gupta
Amitmhrm
Hi Charu,

The components of the salary breakup may be as below. You can prepare it according to your suitability. HRA would be 40% or 50% of the basic salary.

Basic

HRA: 40% - 50% is exempted from taxes, depending on the city's classification

CCA - ₹825 is exempted from tax

Other Allowances

Mobile Reimbursement

Medical Reimbursement of ₹1250/month is exempted from tax

Gross Per Month = Sum of all the above.

Gross Per Annum = 12 * Gross/Month

PF Contribution = 12% of Basic/Annum

ESI Contribution = 4.75% of Gross/Annum

Medical = The mediclaim facility provided to an employee who is not covered under ESI as the maximum ceiling for ESI is ₹10,000/month. If the amount exceeds this, it will be covered under Mediclaim or as per company policy.

Ex-Gratia/Bonus = A fixed amount as a bonus

Annual Fixed Gross Cost = Gross/Annum + Ex-gratia

Annual Total Cost = AFGC + PF + ESIC

Annual total cost is also referred to as CTC.

In addition to the above, Food coupons, Holiday packages, and Furnishing items are included in their CTC.

Hope this helps to clarify your queries to some extent.

Regards,

Amit Seth
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