Hi, as I am new to the HR Generalist role, I would like to know the salary breakdown or salary calculation of an employee in the organization. What is the standard percentage to calculate the basic, PF, HRA, LOP, etc., mentioned in the payslips? I would be thankful to receive the proper information regarding the above-mentioned query.
From India, Bangalore
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From India, Bangalore
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We are a manufacturing company in Tamil Nadu employing about 40 people in total, out of which 20 are workmen. Below, I am outlining how we have broken down the salary for workmen. I am not sure if this is entirely accurate. I hope this breakdown helps, and I believe that experts on this site can provide better advice.
Example Salary Breakdown
For example:
- GROSS = 10500
- Basic = 50% * 10500 = 5250
- DA = 20% * 10500 = 2100
- HRA = 10500 - 5250 - 2100 = 3150
- LOP for 1 day absent = 10500 / 26 = 403.84
Thank you.
From India, Madras
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2Example Salary Breakdown
For example:
- GROSS = 10500
- Basic = 50% * 10500 = 5250
- DA = 20% * 10500 = 2100
- HRA = 10500 - 5250 - 2100 = 3150
- LOP for 1 day absent = 10500 / 26 = 403.84
Thank you.
From India, Madras
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Hi, nowadays in Tamil Nadu, the PF enforcing officer is mandating every company to split the wages in the following manner. Our company has also started following this method. Anything less than 60% of the basic from gross will land you in trouble.
- Basic: 60%
- HRA: 20%
- Other Allowances: 20%
- Total Gross: 100%
Regards,
Madhan
From India, Delhi
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- Basic: 60%
- HRA: 20%
- Other Allowances: 20%
- Total Gross: 100%
Regards,
Madhan
From India, Delhi
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Dear Madan, You have 29% as other allowances. do you deduct PF on that as well. We deduct PF on basic and DA. WHICH PART IF TAMILNADU ARE YOU IN?? Thanks
From India, Madras
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From India, Madras
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Dear Bhavya, Breakup varies from organization to organizations. Generally Basic=(30%-40% of CTC) ; HRA=(40%-60% of Baisc) ; PF is 12% of Basic monthly salary. LOP depends on policy what you have got.
From India, Bangalore
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From India, Bangalore
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It all depends on what salary and other perks are applicable. Generally, there are only two fractions: basic at 60% of total emoluments and the balance at 40% if there are no D.A. (Dearness Allowance) or V.D.A. (Variable Dearness Allowance). Out of the remaining 40%, divide it as 40% H.R.A. (House Rent Allowance). The rest is calculated for conveyance allowance, children's education allowance, newspaper & magazine allowance, etc. Tax liability will also be taken care of.
Thank you.
From India, New Delhi
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Thank you.
From India, New Delhi
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ra7881, Every one going deduct PF in Basic & DA only..we are also doing the same...do you have any other query?? Regards Madhan
From India, Delhi
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From India, Delhi
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