Hi Senior's
I'm working in a domestic BPO (Data management) company located in Chennai. Whereas the head office is in Ahmedabad and all our salary is disbursed from the HO. Ours is strength of 350 staff.
Please find below the salary structure which was prepared by our HO. Kindly let me know is the calculation and the salary structure is correct.
As per my understanding the salary calculation is wrong, because the bonus is calculated twice. Once it is added and then in the next it is subtracted, so no where the bonus is calculated.
Seniors, please solve my query and help me in understanding the above calculation. If it is wrong, requested you to please correct it and also make me understand so that I can further speak and correct it. If it is right, then please explain how.
Basic 25%2053HRA 50%1027SPL Allw4715.7PF 12%246Bonus 8.33%171.036Gross8213Esi 1.7554PF 24%493PT 80Bonus 8.33%172Take Home7414ESI 4.75 %147
Regards
Narinder
From India, Madras
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3I'm working in a domestic BPO (Data management) company located in Chennai. Whereas the head office is in Ahmedabad and all our salary is disbursed from the HO. Ours is strength of 350 staff.
Please find below the salary structure which was prepared by our HO. Kindly let me know is the calculation and the salary structure is correct.
As per my understanding the salary calculation is wrong, because the bonus is calculated twice. Once it is added and then in the next it is subtracted, so no where the bonus is calculated.
Seniors, please solve my query and help me in understanding the above calculation. If it is wrong, requested you to please correct it and also make me understand so that I can further speak and correct it. If it is right, then please explain how.
Basic 25%2053HRA 50%1027SPL Allw4715.7PF 12%246Bonus 8.33%171.036Gross8213Esi 1.7554PF 24%493PT 80Bonus 8.33%172Take Home7414ESI 4.75 %147
Regards
Narinder
From India, Madras
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Narinder, the basic salary should be 40% of gross, HRA 50% of Basic, and 800 conveyance, which is common. The rest of the amount can be named as other/special allowance; these are earnings.
PF is 12%, ESI is 1.75%, and PT are part of deductions. For CTC calculation, PF employer contribution of 12% and ESI of 4.75% will be considered.
Hope this clarifies.
Giree
From India, Bangalore
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PF is 12%, ESI is 1.75%, and PT are part of deductions. For CTC calculation, PF employer contribution of 12% and ESI of 4.75% will be considered.
Hope this clarifies.
Giree
From India, Bangalore
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What Gireeshjayaram is trying to say is that the calculations are correct, and there is nothing to rectify. A bonus amount of 172 X 12, i.e., Rs. 2,064/-, will be paid to you once a year when the bonus is declared. For the computation of your CTC only, this figure is considered here. The rest of the calculation is okay.
From India, Pune
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From India, Pune
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Dear Narinder,
Please see the correct calculation of your salary, and your take-home salary will be Rs. 7332/-. I think your salary breakup is incorrect. Please contact your HR Department. Let me know if you need any other help.
Monthly (Earning) Deduction
2053 246
1027 137
4715 80
7795 463
Net Payable Monthly 7332
Bonus will be paid on an annual basis.
24% of PF will be deposited at the PF Department.
6.5% ESIC will be deposited at the ESIC Department.
From India, Calcutta
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Please see the correct calculation of your salary, and your take-home salary will be Rs. 7332/-. I think your salary breakup is incorrect. Please contact your HR Department. Let me know if you need any other help.
Monthly (Earning) Deduction
2053 246
1027 137
4715 80
7795 463
Net Payable Monthly 7332
Bonus will be paid on an annual basis.
24% of PF will be deposited at the PF Department.
6.5% ESIC will be deposited at the ESIC Department.
From India, Calcutta
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It is ok, but not tax friendly..! what we do is we avoid Special allowance which is completely taxable.
From India, Hyderabad
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From India, Hyderabad
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Dear Narinder,
Please first tell me what you want to calculate: is it CTC or take-home salary? If it is take-home salary, then the formula provided by your corporate HR is absolutely correct. This formula is likely designed specifically to calculate the take-home salary for the candidate.
In the case of calculating CTC, you need to add all the components that the company pays on behalf of the individual, as listed below:
- Basic: 2053
- HRA: 1027
- Special Allowance: 4715
- Gross Salary: 7795
- PF (Employer Contribution at 12%): 246
- Bonus (8.33% of Basic): 171
- ESI Contribution by Employer (at 4.75% of Gross): 371
- PT: 80
- Gratuity (Basic * 15/26/12): 99
Total Cost to Company (CTC): 8762
Thank you.
From India
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Please first tell me what you want to calculate: is it CTC or take-home salary? If it is take-home salary, then the formula provided by your corporate HR is absolutely correct. This formula is likely designed specifically to calculate the take-home salary for the candidate.
In the case of calculating CTC, you need to add all the components that the company pays on behalf of the individual, as listed below:
- Basic: 2053
- HRA: 1027
- Special Allowance: 4715
- Gross Salary: 7795
- PF (Employer Contribution at 12%): 246
- Bonus (8.33% of Basic): 171
- ESI Contribution by Employer (at 4.75% of Gross): 371
- PT: 80
- Gratuity (Basic * 15/26/12): 99
Total Cost to Company (CTC): 8762
Thank you.
From India
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Dear Mr. Ajay,
Salary is calculated considering the take-home salary. However, I did not understand why in the initial stage, the bonus is added and then subtracted, resulting in the bonus not being calculated at all.
Our employer's Provident Fund (PF) is calculated at 25%. When I inquired about this with HR, she mentioned that it had been revised, and many other organizations are following the same practice. Unfortunately, she did not disclose when the employer's PF percentage was revised.
Regards,
Narinder
From India, Madras
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Salary is calculated considering the take-home salary. However, I did not understand why in the initial stage, the bonus is added and then subtracted, resulting in the bonus not being calculated at all.
Our employer's Provident Fund (PF) is calculated at 25%. When I inquired about this with HR, she mentioned that it had been revised, and many other organizations are following the same practice. Unfortunately, she did not disclose when the employer's PF percentage was revised.
Regards,
Narinder
From India, Madras
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SALARY SHEET CALCULATION.xls
Salary calculation.doc