Salary Calculation Challenge: How Would You Present This Case Study Clearly?

Hi all,

Please note the case as follows:

One is having 15000/- PM breakup as follows:
Basic - 9000/-
HRA - 4500/-
Conv - 1500/-
Total - 15000/-

Salary is with PF deduction at 12% on min Basic at Rs 6500/-
In the month of Jan-08, leave was -01 day
TDS deduction Rs. 500/- PM

(1) Please calculate the net salary for Jan-08 with a suitable salary format presentation.

All unaltered for Feb-08 with a leave of 2.5 days (All remained unchanged TDS and all).

(2) Please calculate the net salary for Feb-08 after all deductions with a suitable salary format for easy understanding by the employee as a simple structure of a payslip.

Waiting for a reply with a strong format but easy to understand.

Thanks,
Tarun from Delhi

The case presented is wrong.

1. When the basic is 9000/=, PF should be computed either for the whole basic, which is 9000 * 12% = 1080, or as per statutory requirements, where the minimum PF amount contributable is 780/= for those who are above the basic of 6500/=.

2. Regarding leave, are you referring to paid leave or LOP leave?

Hi Ibrahim,

Thank you for the response. Well, the leaves are not paid leaves, and moreover, the company shows 9000/- as basic, but PF cuts on 6500/- as statutory.

Please go through and reply if any other data you require.

Thank you,
Tarun

I am an accountant for a private company, and my new job involves staff salary payments. Please provide a simple salary format calculation and mention the HR, DA, PF percentages. Kindly send me the details.