I work in a very small company and am paid Rs. 5000 per month in a lump sum cash payment. My salary is not broken down into components like Basic, DA, HRA, CA, etc. Additionally, deductions such as TDS, EPF, and PT do not apply to my case given the salary amount and the number of employees.
Could someone please advise me on how to display the breakdown of my salary in the 'salary certificate' and 'salary payslip,' and what details should be included?
Thank you!
From India, Mumbai
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1Could someone please advise me on how to display the breakdown of my salary in the 'salary certificate' and 'salary payslip,' and what details should be included?
Thank you!
From India, Mumbai
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But can you advise me some breakup? If I show 'consolidated', it will look suspicious I think. Can there be allowances if salary is paid by cash?
From India, Mumbai
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From India, Mumbai
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You haven't mentioned how many people work in your company. You mentioned a salary of 5k, but why are they not entitled to PF? Anyways, if you want to break down the salary, you can consider taking 50% of 5000 as Basic, 40-50% as HRA, 800 for conveyance, etc. However, it's quite confusing as you mentioned that no such deductions are done and no contribution either.
From India, Calcutta
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From India, Calcutta
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Salary Certificate
Mr. XXXXX is working with us as a "Post Name," placed at "City Name" with a CTC of Rs 60,000/-. These are the CTC details:
- **Head Particular**: Annual Package | Monthly Package
- **Basic**: 24,000 | 2,000
- **HRA**: 18,000 | 1,500
- **Special Allowance (Attire Allowance)**: 2,400 | 200
- **Conveyance Allowance**: 3,600 | 300
- **Medical Allowance**: 3,600 | 300
- **Petrol Allowance**: 6,000 | 500
- **Additional Allowance**: 2,400 | 200
- **Gross Salary Before Deductions**: 60,000 | 5,000
- **Deduction - TDS and Loan Arrears**: 4,800 | 400
- **Gross Salary After Deductions**: 55,200 | 4,600
With Regards,
Name
Authorised Signatory
Company Name
From India, Bangalore
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Mr. XXXXX is working with us as a "Post Name," placed at "City Name" with a CTC of Rs 60,000/-. These are the CTC details:
- **Head Particular**: Annual Package | Monthly Package
- **Basic**: 24,000 | 2,000
- **HRA**: 18,000 | 1,500
- **Special Allowance (Attire Allowance)**: 2,400 | 200
- **Conveyance Allowance**: 3,600 | 300
- **Medical Allowance**: 3,600 | 300
- **Petrol Allowance**: 6,000 | 500
- **Additional Allowance**: 2,400 | 200
- **Gross Salary Before Deductions**: 60,000 | 5,000
- **Deduction - TDS and Loan Arrears**: 4,800 | 400
- **Gross Salary After Deductions**: 55,200 | 4,600
With Regards,
Name
Authorised Signatory
Company Name
From India, Bangalore
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Hi Vikram, thanks a lot. But there is no TDS because my salary is below the taxable slab. How did you put TDS then? Also, can I make a monthly salary slip with these details you provided instead of a salary certificate?
From India, Mumbai
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From India, Mumbai
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Exclude the TDS part. However, you can prepare the salary slips in this format. This is usually used by start-up companies. If you work in a CA's office, please note that new rules state that even a company with just one employee needs to register under EPF and ESI, and deductions must be made.
Regards, Vikram
From India, Bangalore
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Regards, Vikram
From India, Bangalore
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Are you sure? I thought the rule for EPF is a minimum of 10 employees; mine has only 5. Do you have any links about this new rule? Also, can I omit some allowances from your list, like medical?
Thank you so much.
From India, Mumbai
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Thank you so much.
From India, Mumbai
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Google the rule about EPF and ESI. And also YES you can take our some points like medical, but ussually medical benifits are found on every company’s payslip — -Vikram
From India, Bangalore
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From India, Bangalore
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Oh okay, because I read somewhere that medical allowance has some other complicated rules, so I just felt like omitting it. By the way, check this site: EPFO <link updated to site home>
Employees' Provident Fund and Miscellaneous Provisions Act 1952
The Act is applicable to:
- Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by the Central Government in the Official Gazette. (List of Industries/Establishments)
- Employing 20 or more persons.
- Cinema Theatres employing 5 or more persons.
For Employers:
- Establishments employing 20 or more persons and engaged in any of the 180 industries/Classes of Businesses specified.
And for ESI: ESIC-Chinta Se Mukti <link updated to site home> (Search On Cite | Search On Google)
Coverage under the ESI Act, 1948
Applicability
Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.
From India, Mumbai
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Employees' Provident Fund and Miscellaneous Provisions Act 1952
The Act is applicable to:
- Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by the Central Government in the Official Gazette. (List of Industries/Establishments)
- Employing 20 or more persons.
- Cinema Theatres employing 5 or more persons.
For Employers:
- Establishments employing 20 or more persons and engaged in any of the 180 industries/Classes of Businesses specified.
And for ESI: ESIC-Chinta Se Mukti <link updated to site home> (Search On Cite | Search On Google)
Coverage under the ESI Act, 1948
Applicability
Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.
From India, Mumbai
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your breakup for 5000 salary basic 2000(40% of gross) HRA 1000(50% as you are in metro) conv 800 special allowance 960 decuction PF 240 total 5000 correct me if i am wrong
From India, Delhi
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From India, Delhi
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Hi imok, can you explain why you put PF deduction? My firm has 5 people and therefore, no PF .. right?
From India, Mumbai
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From India, Mumbai
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PF Eligibility Criteria
PF is applicable if:
1. Your Basic plus DA is ₹6,500 or less.
2. Your age is less than 58 years.
Attribution: https://www.citehr.com/258537-pf-eli...#ixzz1rKkzQvfV
From India, Delhi
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PF is applicable if:
1. Your Basic plus DA is ₹6,500 or less.
2. Your age is less than 58 years.
Attribution: https://www.citehr.com/258537-pf-eli...#ixzz1rKkzQvfV
From India, Delhi
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Is PF the Same as EPF?
There is no compulsion for EPF for companies with less than 10 employees according to this site: EPFO
From India, Mumbai
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There is no compulsion for EPF for companies with less than 10 employees according to this site: EPFO
From India, Mumbai
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You are correct that there is no compulsion, but it is necessary for employees' future security. Anyways, you can consider the following options: increase the amount in special allowance, or if you prefer to show a deduction, allocate the PF amount to insurance deduction.
From India, Delhi
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From India, Delhi
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First of all, you have to see whether you are receiving the minimum wages as per your designation. You need to refer to the minimum wages GO and mention the basic plus DA as per the gazette, and any remaining balance amount can be allocated to other categories.
For example, if the minimum wage is 3800 and DA is 800, your breakdown should be as follows:
- Basic: 3800
- DA: 800
- Conveyance: 400
However, I hope that you are receiving the minimum wages. Nowadays, the minimum wages are on the higher side, around Rs. 5000.
Thank you.
From India, Mumbai
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For example, if the minimum wage is 3800 and DA is 800, your breakdown should be as follows:
- Basic: 3800
- DA: 800
- Conveyance: 400
However, I hope that you are receiving the minimum wages. Nowadays, the minimum wages are on the higher side, around Rs. 5000.
Thank you.
From India, Mumbai
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EPF and Professional Tax Deductions
EPF applies to employees when the number of employees reaches 20 or more in any month within the preceding 12 months. You may follow the list provided by Vikram. Additionally, you have to deduct PT (Professional Tax). Please check the slab with your CA and ensure this deduction is mentioned in the salary slip.
Regards,
Dilip
From India, Surat
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EPF applies to employees when the number of employees reaches 20 or more in any month within the preceding 12 months. You may follow the list provided by Vikram. Additionally, you have to deduct PT (Professional Tax). Please check the slab with your CA and ensure this deduction is mentioned in the salary slip.
Regards,
Dilip
From India, Surat
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Professional Tax Applicability
But professional tax is applicable for a monthly salary of $5001 and higher. Therefore, there is no EPF, no PTax, and no TDS. Can 'deductions' in the salary slip look like this: EPF-0, PT-0, TDS-0? Or does it look weird?
From India, Mumbai
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But professional tax is applicable for a monthly salary of $5001 and higher. Therefore, there is no EPF, no PTax, and no TDS. Can 'deductions' in the salary slip look like this: EPF-0, PT-0, TDS-0? Or does it look weird?
From India, Mumbai
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make sure your are not getting lower than minimum wages, but deduction can be done for insurance.
From India, Delhi
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From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
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