Hi, can you pls let me know if reducing special allownace in salary break up & increasing basic helps? also whether one should opt for the meal & gift vouchers. Thanks in advance ST
From India, Hyderabad
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From India, Hyderabad
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Sachin,
Increasing Basic is advantageous for the employees as it will boost their savings through increased contributions towards PF and Gratuity (if it is part of CTC). In a CTC regime, employers will not lose anything due to the increase in Basic as PF contributions from both sides are covered under CTC.
Regarding Sodexo or any other food coupons, the limit is ₹2700 per month in the FY 2011-12 as tax-free, but it will attract FBT on the employer's side.
From India, Lucknow
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616Increasing Basic is advantageous for the employees as it will boost their savings through increased contributions towards PF and Gratuity (if it is part of CTC). In a CTC regime, employers will not lose anything due to the increase in Basic as PF contributions from both sides are covered under CTC.
Regarding Sodexo or any other food coupons, the limit is ₹2700 per month in the FY 2011-12 as tax-free, but it will attract FBT on the employer's side.
From India, Lucknow
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Salary breakup format.xls
Salary Breakup Annexure.doc