Dear Member, Can any guide me through statutory rules of salary break up ? Is it depends upon industry? or Or its depends upon company to company Thanks & regards Dinesh
From India, Calcutta
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11From India, Calcutta
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Dear Member, Basic and DA/VDA to be provided as per the laws of land. Allowances to be considered based on the Income tax regulations and benefits.
From India, Madras
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From India, Madras
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Thank you very much. Please provide me with the breakdown of the Gross Salary as per statutory norms, such as Basic + HRA + Conveyance = Gross Salary. I am interested in understanding the percentage allocated to each component based on statutory regulations.
Thanks & regards,
Dinesh
From India, Calcutta
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Thanks & regards,
Dinesh
From India, Calcutta
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Thank you very much, Mr. Sudhir, for sharing the file. I just want to know if the percentages you have shown in the sheet are in line with statutory norms. If so, could you please specify the relevant law?
Thanks & regards,
Dinesh
From India, Calcutta
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Thanks & regards,
Dinesh
From India, Calcutta
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Salary breakup depends on the company because some organizations will calculate it based on 40%, 50%, or 60% according to the company's norms. This calculation is based on the CTC breakup, meaning it is calculated per annum from both sides, along with the benefits provided by the company.
Regards,
Sudhir Kumar
From India, Visakhapatnam
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Regards,
Sudhir Kumar
From India, Visakhapatnam
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Our labor consultant informs us that the basic salary should be a minimum of 60% of the Gross Salary drawn by the employee. Is this correct? Can anyone please provide the specific rule or clause which states this as a rule?
I have seen a number of payslips where the basic salary is less than 30% of the Gross Salary drawn. Even in the example given, the Basic is shown at 30% of the gross. Our earlier basic was 50% of the basic salary, and subsequently, we have gradually increased it to 60% of the Basic.
Please advise the exact rule. We are based in Karnataka.
Regards
From India, Bangalore
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I have seen a number of payslips where the basic salary is less than 30% of the Gross Salary drawn. Even in the example given, the Basic is shown at 30% of the gross. Our earlier basic was 50% of the basic salary, and subsequently, we have gradually increased it to 60% of the Basic.
Please advise the exact rule. We are based in Karnataka.
Regards
From India, Bangalore
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My view on salary breakup should be as follows:
Basic Salary
- 50%-55% of the gross salary. It is important to note that the basic salary should not be less than the minimum wages of the state.
HRA
- 40% of the basic salary.
Conveyance
- Rs.800/-. Anything above this amount will be taxable.
Educational Cess
- Rs.200/-
Medical Allowance
- Rs.1250/-. Anything above this amount will also be taxable.
The remaining amount should be categorized under other allowances.
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Basic Salary
- 50%-55% of the gross salary. It is important to note that the basic salary should not be less than the minimum wages of the state.
HRA
- 40% of the basic salary.
Conveyance
- Rs.800/-. Anything above this amount will be taxable.
Educational Cess
- Rs.200/-
Medical Allowance
- Rs.1250/-. Anything above this amount will also be taxable.
The remaining amount should be categorized under other allowances.
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Thank you very much, sir. You mean to say that as per statutory norms, we have to keep in mind that the basic salary should not be less than the minimum wages of that particular state (irrespective of percentage).
Thanks & regards,
Dinesh
From India, Calcutta
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Thanks & regards,
Dinesh
From India, Calcutta
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Dear Member, can u please explain me what is mean by VDA & its includind in salary breakup depends or not ? Archana Rane
From India, Mumbai
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From India, Mumbai
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Dear Hitesh,
Yes, PF is applicable to Food Allowance. The component for EPF contribution should be Basic + DA/VDA + food conc. (if any). The Basic + DA should not be less than the minimum wage defined by the state government from time to time.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Yes, PF is applicable to Food Allowance. The component for EPF contribution should be Basic + DA/VDA + food conc. (if any). The Basic + DA should not be less than the minimum wage defined by the state government from time to time.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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All the rules, whatever all of you are saying, are right. But the salary breakup procedure depends on the company's policy.
Salary Breakup Procedure
In some companies, it will be:
- CTC: 50,000
- BASIC: 40 to 50% of CTC
- HRA: 40% of BASIC for non-metro cities, 50% for metro cities
- CON: 800
- WASHING or EDUCATION: 200
Thanks & Regards,
Mr. Ajit Vishnoi
HR
From India, Delhi
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Salary Breakup Procedure
In some companies, it will be:
- CTC: 50,000
- BASIC: 40 to 50% of CTC
- HRA: 40% of BASIC for non-metro cities, 50% for metro cities
- CON: 800
- WASHING or EDUCATION: 200
Thanks & Regards,
Mr. Ajit Vishnoi
HR
From India, Delhi
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Salary breakup format.xls
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