Dear all, Anyone can brief me what will be the good salary strucutre that can save the income tax of employees? Thanks & regards, Raj
From India, Gurgaon
5From India, Gurgaon
Hi Raj,
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Hope it must help you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Hope it must help you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
Dear Mr Amith
thanks for the salary structure but what is the meaning of Medical reimburshment
because even i too doing payroll for 120 emp
if u provide the imformation it will be very helpfull for me for to get the reduction of IT some what to our employees
warm Regards
ramu
From India, Delhi
thanks for the salary structure but what is the meaning of Medical reimburshment
because even i too doing payroll for 120 emp
if u provide the imformation it will be very helpfull for me for to get the reduction of IT some what to our employees
warm Regards
ramu
From India, Delhi
Dear Ramu,
The medical reimbursement is a flible part of the CTC, actually it is exemted from tax upto rupees 1250/- . And it is been paid after presenting the medical bill for the same...
Regards,
Amit Seth.
From India, Ahmadabad
The medical reimbursement is a flible part of the CTC, actually it is exemted from tax upto rupees 1250/- . And it is been paid after presenting the medical bill for the same...
Regards,
Amit Seth.
From India, Ahmadabad