Dear All, I am working in construction company as HR Executive and we don’t have salary bifurcation over here so would like to implement the same kindly guide. Thanks & Regards Gayatri
From India, Pune
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4From India, Pune
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You may bifurcate the salary as follows:
Salary Breakdown Example
Suppose the Gross Salary is Rs. 20,000/- per month. The breakdown should be as follows:
- Basic (40-50%) = Rs. 10,000/-. The basic salary should not be less than the minimum wages as applicable.
- HRA (40% of Basic) = Rs. 4,000/-
- Conveyance Allowance = Rs. 800/-
- Education Allowance = Rs. 200/-
- Special Allowance = Rs. 5,000/-
Total = Rs. 20,000/-
Components for Calculating CTC
To calculate the CTC, the following components need to be added:
- Employer's share of PF
- Employer's share of ESI (ESI is not applicable in this case)
- Bonus
- Gratuity
- Any other reimbursements
With Best Regards
From India, New Delhi
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Salary Breakdown Example
Suppose the Gross Salary is Rs. 20,000/- per month. The breakdown should be as follows:
- Basic (40-50%) = Rs. 10,000/-. The basic salary should not be less than the minimum wages as applicable.
- HRA (40% of Basic) = Rs. 4,000/-
- Conveyance Allowance = Rs. 800/-
- Education Allowance = Rs. 200/-
- Special Allowance = Rs. 5,000/-
Total = Rs. 20,000/-
Components for Calculating CTC
To calculate the CTC, the following components need to be added:
- Employer's share of PF
- Employer's share of ESI (ESI is not applicable in this case)
- Bonus
- Gratuity
- Any other reimbursements
With Best Regards
From India, New Delhi
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Importance of a Salary Structure
A salary structure is necessary for the following reasons:
• It provides a sense of satisfaction and clarity.
• It is essential for income tax purposes.
• It aids in statutory calculation purposes.
Currently, I am also working in real estate and have introduced a salary structure and salary grades in my company. If you require any help, please do not hesitate to call me.
Regards,
Praveen
[Phone Number Removed For Privacy Reasons]
From India, Bengaluru
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A salary structure is necessary for the following reasons:
• It provides a sense of satisfaction and clarity.
• It is essential for income tax purposes.
• It aids in statutory calculation purposes.
Currently, I am also working in real estate and have introduced a salary structure and salary grades in my company. If you require any help, please do not hesitate to call me.
Regards,
Praveen
[Phone Number Removed For Privacy Reasons]
From India, Bengaluru
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Creating a Competitive Salary Structure.doc
Salary & Compensation Guidelines.zip