Dear All, I'm having confusion while structuring the Salary Components. Below is the scenario:
Salary Structure Scenario
If an employee's salary is Rs. 11,500/- Gross, then his basic salary would be either 50% of the Gross or whatever the minimum wages are. Correct me here if I am wrong. The basic salary we have taken is Rs. 10,650/-.
HRA Calculation
Then after basic, HRA is supposed to be 40% or 50% of Basic, depending upon the city criteria, whether it is a metro or non-metro. Alternatively, we can also put the remaining amount in the HRA if it is below 40%.
Bonus Component
Now, we also have a bonus component in the monthly gross salary and not in CTC. So, what should I prioritize? Should I ensure HRA is fulfilled with the remaining amount or focus on the Bonus?
Please revert to this situation along with the authentication proof.
From India, Haridwar
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Salary Structure Scenario
If an employee's salary is Rs. 11,500/- Gross, then his basic salary would be either 50% of the Gross or whatever the minimum wages are. Correct me here if I am wrong. The basic salary we have taken is Rs. 10,650/-.
HRA Calculation
Then after basic, HRA is supposed to be 40% or 50% of Basic, depending upon the city criteria, whether it is a metro or non-metro. Alternatively, we can also put the remaining amount in the HRA if it is below 40%.
Bonus Component
Now, we also have a bonus component in the monthly gross salary and not in CTC. So, what should I prioritize? Should I ensure HRA is fulfilled with the remaining amount or focus on the Bonus?
Please revert to this situation along with the authentication proof.
From India, Haridwar
Acknowledge(0)Amend(0)
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx