- Basic Salary
- Commissions/Incentives
- Bonus
- Dearness Allowance
- Child Education Allowance (better given as reimbursement to save tax)
- Child Hostel Allowance (better given as reimbursement to save tax)
- City Compensatory Allowance
- Conveyance Allowance
- House Rent Allowance
- Leave Travel Allowance (better given as reimbursement up to a maximum of 15,000/- to save tax)
- Lunch Allowance
- Medical reimbursement to a maximum of 15,000/- (otherwise it will be taxed)
- Newspaper Allowance (better given as reimbursement to save tax)
- Special Allowance
- Gift Voucher
- Club Membership (save tax)
From India, Gurgaon
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675- Commissions/Incentives
- Bonus
- Dearness Allowance
- Child Education Allowance (better given as reimbursement to save tax)
- Child Hostel Allowance (better given as reimbursement to save tax)
- City Compensatory Allowance
- Conveyance Allowance
- House Rent Allowance
- Leave Travel Allowance (better given as reimbursement up to a maximum of 15,000/- to save tax)
- Lunch Allowance
- Medical reimbursement to a maximum of 15,000/- (otherwise it will be taxed)
- Newspaper Allowance (better given as reimbursement to save tax)
- Special Allowance
- Gift Voucher
- Club Membership (save tax)
From India, Gurgaon
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Hi, you can also add:
1. Uniform Maintenance
2. Professional Enrichment Allowance
3. Entertainment (Reimbursement), etc.
4. Vehicle Allowance
5. Phone Allowance
Most of the components above can be considered for higher-grade salaries.
Regards,
Shravan
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1. Uniform Maintenance
2. Professional Enrichment Allowance
3. Entertainment (Reimbursement), etc.
4. Vehicle Allowance
5. Phone Allowance
Most of the components above can be considered for higher-grade salaries.
Regards,
Shravan
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I just wanted to know the limits of Uniform Maintenence and Professional Enrichment Allowance Regards Amit
From India, Ahmadabad
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From India, Ahmadabad
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Professional Enrichment:
Eligible employees may request reimbursement for expenses associated with professional development such as seminars, books, and professionally related dues, etc., for the employee’s professional or technical growth. The maximum reimbursement amount is in accordance with the employee’s memorandum of understanding.
Uniform Maintenance
Uniform maintenance can be reimbursed in accordance with the employee memorandum of understanding.
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Eligible employees may request reimbursement for expenses associated with professional development such as seminars, books, and professionally related dues, etc., for the employee’s professional or technical growth. The maximum reimbursement amount is in accordance with the employee’s memorandum of understanding.
Uniform Maintenance
Uniform maintenance can be reimbursed in accordance with the employee memorandum of understanding.
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Dear Colleagues,
Let me add a few words to the issues raised on Compensation & Benefits.
One basic thing is the status of the employee(s) concerned, the department to which they belong, and probably the level of hazard-related tasks they might be involved in. More importantly, the business environment and industry play a crucial role.
Additional Allowances
However, some allowances not mentioned would include, but are not limited to, the following:
- Fuel Allowance (Petrol/Diesel)
- Driver's Allowance
- Mobile/Cell Phone Allowance
- Power Generator Allowance
- Internet Access Allowance
- Academic/Professional Membership Allowance
- Accident-Free Allowance (for Drivers)
- Night Shift Allowance
- Furniture Allowance
- Mortgage Allowance
- Offshore/Rig Allowance
- Gas Allowance (domestic)
- Dressing Allowance - Marketing Team/TV Broadcasters
Certainly, the list can go on and on, but as I have earlier said, the staff's status in the company would determine what he/she gets as compensation, and the industry they belong to would be the launching pad for such.
Thanks
Regards, Afolabi Ajayi
From Nigeria, Lagos
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Let me add a few words to the issues raised on Compensation & Benefits.
One basic thing is the status of the employee(s) concerned, the department to which they belong, and probably the level of hazard-related tasks they might be involved in. More importantly, the business environment and industry play a crucial role.
Additional Allowances
However, some allowances not mentioned would include, but are not limited to, the following:
- Fuel Allowance (Petrol/Diesel)
- Driver's Allowance
- Mobile/Cell Phone Allowance
- Power Generator Allowance
- Internet Access Allowance
- Academic/Professional Membership Allowance
- Accident-Free Allowance (for Drivers)
- Night Shift Allowance
- Furniture Allowance
- Mortgage Allowance
- Offshore/Rig Allowance
- Gas Allowance (domestic)
- Dressing Allowance - Marketing Team/TV Broadcasters
Certainly, the list can go on and on, but as I have earlier said, the staff's status in the company would determine what he/she gets as compensation, and the industry they belong to would be the launching pad for such.
Thanks
Regards, Afolabi Ajayi
From Nigeria, Lagos
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Hi, I have just joined the forum and was going through the discussions on salary structures in India. It is indeed very enlightening, but I have a query. Regarding all these allowances, what kind of limits are applicable to make them tax-free? For example, medical is ₹15,000 per annum. What about the rest?
Pooja
From India, Delhi
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Pooja
From India, Delhi
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hi pooja Conveyance allowance is tax free till Rs 800 /- Pm ( Rs 9600/- P .A ) Above which it becomes taxable. REgards Ashit
From India, Mumbai
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From India, Mumbai
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Hi all,
It's very informative, but I would like to know what is the maximum limit for getting tax exemptions. In the recent budget, there is something about imposing tax on fringe benefits. That tax would mostly be borne by the employer. What is the percentage which would be imposed? I would be pleased if any one of you could share the information.
Thanks and regards,
Sridhar
From India, Madras
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It's very informative, but I would like to know what is the maximum limit for getting tax exemptions. In the recent budget, there is something about imposing tax on fringe benefits. That tax would mostly be borne by the employer. What is the percentage which would be imposed? I would be pleased if any one of you could share the information.
Thanks and regards,
Sridhar
From India, Madras
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Hi,
As I know, the conveyance allowance is 800/- and medical allowance is 1250/- per month at a minimum that can be paid. However, I still need to ask what the set rules are for the salary breakup in my company. For instance, an employee is receiving a 50000/- salary per month, or if someone is getting 20000/-, 15000/-, 10000/-, 8500/-, 7000/-. We break down the salary into the following components:
- Basic (how do we determine the basic pay?)
- HRA
- Medical Allowances
- Conveyance Allowances
- Special Allowances (is it taxable?)
Thank you,
Taruna
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As I know, the conveyance allowance is 800/- and medical allowance is 1250/- per month at a minimum that can be paid. However, I still need to ask what the set rules are for the salary breakup in my company. For instance, an employee is receiving a 50000/- salary per month, or if someone is getting 20000/-, 15000/-, 10000/-, 8500/-, 7000/-. We break down the salary into the following components:
- Basic (how do we determine the basic pay?)
- HRA
- Medical Allowances
- Conveyance Allowances
- Special Allowances (is it taxable?)
Thank you,
Taruna
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Sridhar,
Offhand, what the FBT says is to tax all of the financial transactions that happen due to an employee (be it business-related and hence taxed by the employer or part of the salary component - the tax component being passed on to the employee). Currently, with the kind of uproar this new tax component is creating, I doubt that the tax is going to become legal (though some form of it might stay). Probably the best bet to look at the financial impact of your salary (including all of the perks, perquisites, etc.) would be done through a visit to a Chartered Accountant.
PS - I am currently looking at restructuring my own salary, and you bet, next week on Monday, I am meeting my company's CA for his approval/suggestions. Cheers!!!
Ashish
From India, Mumbai
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Offhand, what the FBT says is to tax all of the financial transactions that happen due to an employee (be it business-related and hence taxed by the employer or part of the salary component - the tax component being passed on to the employee). Currently, with the kind of uproar this new tax component is creating, I doubt that the tax is going to become legal (though some form of it might stay). Probably the best bet to look at the financial impact of your salary (including all of the perks, perquisites, etc.) would be done through a visit to a Chartered Accountant.
PS - I am currently looking at restructuring my own salary, and you bet, next week on Monday, I am meeting my company's CA for his approval/suggestions. Cheers!!!
Ashish
From India, Mumbai
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Hi All: This is Radhika Pallav, joined new to the group. Just wanted to know what are the fixed ratio for the components of CTC salary in India. Please advice. Regards Radhika
From India, Madras
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From India, Madras
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pls could u tell me , whether in india we have a branding of employees? and i had also read of "BUFFET BENIFIT PACAKAGES" what are thys?
From India, New Delhi
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From India, New Delhi
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Reema: Are you referring to "Cafeteria Style" benefits where a party can pick and choose the specific benefit package which he or she wants, dependent upon specific needs and ability to pay? Alan
From United States, Bluff City
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From United States, Bluff City
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Dear All,
If anyone has the salary structure of IT companies, please forward it to me at my email id l.prashanth@itti.co.in. If you have a sample copy of how to work out the structure, please send it to me. I would be thankful for your help.
Regards,
Prashanth
From India, Bangalore
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If anyone has the salary structure of IT companies, please forward it to me at my email id l.prashanth@itti.co.in. If you have a sample copy of how to work out the structure, please send it to me. I would be thankful for your help.
Regards,
Prashanth
From India, Bangalore
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Dear,
Components of the Monthly Salary can be divided into subheads such as:
1. Salary that includes Basic, HRA, Special Allowance,
2. Perquisites that include Allowances and Reimbursements,
3. Other Perquisites
- Monthly Provided (Coupons) & Annual Provided (LTA, Medical)
4. Statutory Contributions (P.F, ESI)
The same can be subject to change as per the existing policy of the company.
Regards,
From United States, Santa Clara
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Components of the Monthly Salary can be divided into subheads such as:
1. Salary that includes Basic, HRA, Special Allowance,
2. Perquisites that include Allowances and Reimbursements,
3. Other Perquisites
- Monthly Provided (Coupons) & Annual Provided (LTA, Medical)
4. Statutory Contributions (P.F, ESI)
The same can be subject to change as per the existing policy of the company.
Regards,
From United States, Santa Clara
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Basic
Dearness allowance
Overtime
Bonus
City compensatory allowance (CCA)
Conveyance allowance
Medical
Flexible benefit plan
Leave encashment
Leave travel allowance
Gratuity
Children education or hostel allowance
Employee stock option
I have reviewed the list you provided, and it appears to be a list of various types of benefits and allowances that may be offered to employees. It's important to ensure that these benefits are clearly communicated to employees to maintain transparency and satisfaction in the workplace. If you need further assistance in understanding or implementing these benefits, feel free to reach out for support.
From India, Ahmadabad
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Dearness allowance
Overtime
Bonus
City compensatory allowance (CCA)
Conveyance allowance
Medical
Flexible benefit plan
Leave encashment
Leave travel allowance
Gratuity
Children education or hostel allowance
Employee stock option
I have reviewed the list you provided, and it appears to be a list of various types of benefits and allowances that may be offered to employees. It's important to ensure that these benefits are clearly communicated to employees to maintain transparency and satisfaction in the workplace. If you need further assistance in understanding or implementing these benefits, feel free to reach out for support.
From India, Ahmadabad
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The other major component (opted by many MNC’s) of salary in India are a) medical reimbursements b) Food Coupons
From India, New Delhi
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From India, New Delhi
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Dear Madam, Me 2 facing th same problem, Can u let me know if u have got some advice on the Salary front. Rgds Fabian
From India, Mumbai
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From India, Mumbai
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Dear all,
I had the same problem. Please, can anyone help me out? Please let me know what are the components to fix a salary for an IT company, taking into consideration the latest tax rules.
I would be thankful if anyone will help me out.
Swathi
From India, Hyderabad
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I had the same problem. Please, can anyone help me out? Please let me know what are the components to fix a salary for an IT company, taking into consideration the latest tax rules.
I would be thankful if anyone will help me out.
Swathi
From India, Hyderabad
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Dear Afolabi Ajayi, Got the full details about the salary coponents. This would help me in structuring the package for employees. Thank you very much. Vasanthi Chennai +91 98408 63066
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Hi,
General components of salary in India vary from organization to organization, but the most common are:
1. In Government Circle:
- Basic Pay
- Dearness Allowance
- House Rent Allowance
- Conveyance/Transport Allowance
2. In Semi Govt. / PSU:
- Basic Pay
- Dearness Allowance
- House Rent Allowance
- Conveyance/Transport Allowance
- City Compensatory Allowance
3. In Industrial Organization:
- Basic Pay
- Dearness/Variable Dearness Allowance
- House Rent Allowance
- Conveyance/Transport Allowance
4. In Other Establishments:
- Basic Pay
- House Rent Allowance
- Conveyance/Transport Allowance
All other components are simply named as "just to save tax" components, which depend on the organization's thought process in naming an allowance. You are free to give a name to any component as long as it does not conflict with statutory requirements such as EPF, ESI, Bonus, Gratuity, Income Tax, and Industrial Dispute Act.
Regards,
Anil Anand
From India, New Delhi
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General components of salary in India vary from organization to organization, but the most common are:
1. In Government Circle:
- Basic Pay
- Dearness Allowance
- House Rent Allowance
- Conveyance/Transport Allowance
2. In Semi Govt. / PSU:
- Basic Pay
- Dearness Allowance
- House Rent Allowance
- Conveyance/Transport Allowance
- City Compensatory Allowance
3. In Industrial Organization:
- Basic Pay
- Dearness/Variable Dearness Allowance
- House Rent Allowance
- Conveyance/Transport Allowance
4. In Other Establishments:
- Basic Pay
- House Rent Allowance
- Conveyance/Transport Allowance
All other components are simply named as "just to save tax" components, which depend on the organization's thought process in naming an allowance. You are free to give a name to any component as long as it does not conflict with statutory requirements such as EPF, ESI, Bonus, Gratuity, Income Tax, and Industrial Dispute Act.
Regards,
Anil Anand
From India, New Delhi
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hiii all... The general components of salary was too good and informative..but i have a query regarding the calculation of cost to company.. Can anyone tell me how to go about it!!! Regards Tanu..
From India, Mumbai
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From India, Mumbai
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Dear,
You can add the following:
- Telephone Reimbursement (bi-monthly)
- Internet reimbursement
- Turnout Allowance (Security and others)
- Split Shift Allowance (For drivers and others)
- Credit Card Annual Fee reimbursement
- Gardner Allowance (For senior executives)
- Domestic Help allowance (Senior Executives)
- Leave Travel Concession or Leave Travel Assistance
- Charge Allowance (Somebody is discharging the HOD responsibility for more than two months) or Officiating Allowance
- Professional Fee Reimbursement (The fee paid to the professional bodies by the employees/executives can be reimbursed)
- Disturbance Allowance (In case of transfer and not shifted family to the present place of posting)
Regards,
A. Ratna Sekhar
Manager-IR&W
919448205687
From India, Hyderabad
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You can add the following:
- Telephone Reimbursement (bi-monthly)
- Internet reimbursement
- Turnout Allowance (Security and others)
- Split Shift Allowance (For drivers and others)
- Credit Card Annual Fee reimbursement
- Gardner Allowance (For senior executives)
- Domestic Help allowance (Senior Executives)
- Leave Travel Concession or Leave Travel Assistance
- Charge Allowance (Somebody is discharging the HOD responsibility for more than two months) or Officiating Allowance
- Professional Fee Reimbursement (The fee paid to the professional bodies by the employees/executives can be reimbursed)
- Disturbance Allowance (In case of transfer and not shifted family to the present place of posting)
Regards,
A. Ratna Sekhar
Manager-IR&W
919448205687
From India, Hyderabad
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Thank you very much for your reply, madam. By the way, I am Smitha. I would like to know more about HR. Actually, I have a passion to get into HR. But I do not understand where to start and how to start. Could anyone help me please? I am doing my MBA in HR but working as an Administration and Finance Executive.
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Dear friends,
I would like to know what percentage of total earnings must be the basic pay and allowances, etc. I guess there must be some measure for everything. I hear people telling that basic pay must be 25% and some say 40%, so I am not sure about that. I would appreciate it if someone could provide me with the exact details.
Thanks a ton!!
~ Harry
From India, Bangalore
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I would like to know what percentage of total earnings must be the basic pay and allowances, etc. I guess there must be some measure for everything. I hear people telling that basic pay must be 25% and some say 40%, so I am not sure about that. I would appreciate it if someone could provide me with the exact details.
Thanks a ton!!
~ Harry
From India, Bangalore
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Dear Harry,
Generally, you can consider 35% to 40% as the basic salary. Let me explain it this way.
Let the gross be Rs 2,00,000 per annum, and the following components can be derived (Annual figures):
- Basic: Rs 80,000 (40% of Gross)
- HRA: Rs 32,000 (40% of Basic)
- CCA: Rs 16,000 (20% of Basic)
- PF: Rs 9,600 (12% of Basic)
- Medical Reimbursement: Rs 15,000 (maximum limit)
Calculate the total of these components as X. Then, find the difference between Rs 2,00,000 and X. You can adjust that amount for other allowances and reimbursements.
Regards,
R. Karanik
From India, New Delhi
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Generally, you can consider 35% to 40% as the basic salary. Let me explain it this way.
Let the gross be Rs 2,00,000 per annum, and the following components can be derived (Annual figures):
- Basic: Rs 80,000 (40% of Gross)
- HRA: Rs 32,000 (40% of Basic)
- CCA: Rs 16,000 (20% of Basic)
- PF: Rs 9,600 (12% of Basic)
- Medical Reimbursement: Rs 15,000 (maximum limit)
Calculate the total of these components as X. Then, find the difference between Rs 2,00,000 and X. You can adjust that amount for other allowances and reimbursements.
Regards,
R. Karanik
From India, New Delhi
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hi i am chinna student of HR i would like to know what are the percentages of individual components in the salary please help me. with regards. chinna
From India, Bangalore
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From India, Bangalore
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Dear All,
Kindly mention the proportionate percentage for arriving at the basic salary from CTC. Our company adopts 35% of the basic salary to arrive at HRA. What percentage of the gross is basic? I need to arrive at the breakup for Rs. 540,000 CTC. Please mention the breakup for the same. Your suggestions will be highly appreciated.
Thanks,
Nitu
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Kindly mention the proportionate percentage for arriving at the basic salary from CTC. Our company adopts 35% of the basic salary to arrive at HRA. What percentage of the gross is basic? I need to arrive at the breakup for Rs. 540,000 CTC. Please mention the breakup for the same. Your suggestions will be highly appreciated.
Thanks,
Nitu
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Hi,
In today's business environment, business performance plays a vital role in the very existence of the word "Employee." Based on this performance, the salary components should be defined. In our establishment, this component plays a vital role. So, we pay 60% of the pay package as variable and 40% as fixed. The fixed component is distributed in Basic, DA, Special Allowance, and House Rent Allowance. The variable components are Performance Linked Pay (linked with production volume and monthly profitability) and Productivity Linked Pay (linked with production volume only).
I believe this is the best possible combination for a manufacturing industry.
Regards,
srp
From India, Gurgaon
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In today's business environment, business performance plays a vital role in the very existence of the word "Employee." Based on this performance, the salary components should be defined. In our establishment, this component plays a vital role. So, we pay 60% of the pay package as variable and 40% as fixed. The fixed component is distributed in Basic, DA, Special Allowance, and House Rent Allowance. The variable components are Performance Linked Pay (linked with production volume and monthly profitability) and Productivity Linked Pay (linked with production volume only).
I believe this is the best possible combination for a manufacturing industry.
Regards,
srp
From India, Gurgaon
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I remember if the employee submits bills for the amount claimed against conveyance allowance (reimbursement), then the same can be claimed for tax deduction. Also, for lunch allowance, we can give food vouchers/food coupons to allow for tax deduction for that amount.
Regards,
Samba.
From India, Hyderabad
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Regards,
Samba.
From India, Hyderabad
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Dear all,
We know that the contribution of PF is applicable to leave encashment and leave availed by an employee during the tenure of his service. But what about the unavailed leave wages/salary paid to a separated employee on his final settlement? Please help me understand the logic and the rules under the EPF & MP Act, if any.
Regards,
srp
From India, Gurgaon
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We know that the contribution of PF is applicable to leave encashment and leave availed by an employee during the tenure of his service. But what about the unavailed leave wages/salary paid to a separated employee on his final settlement? Please help me understand the logic and the rules under the EPF & MP Act, if any.
Regards,
srp
From India, Gurgaon
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Hi, Could you pls help in what is the max amout in thes components. I hope good ending from your side. Regards, P.S.Phani.
From India, Bangalore
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From India, Bangalore
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Hi!
The percentage is fixed. However, there is no limit for the right employee in the right position. As I spoke, performance is the only yardstick - I mean both individual and corporate. For an exceptional performer, the sky is the limit.
Hope you understood my points.
Thanks
From India, Gurgaon
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The percentage is fixed. However, there is no limit for the right employee in the right position. As I spoke, performance is the only yardstick - I mean both individual and corporate. For an exceptional performer, the sky is the limit.
Hope you understood my points.
Thanks
From India, Gurgaon
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Ashish,
Would be thankful if you are able to share the concrete information after your meeting with the CA as I am also in the process of restructuring the salary structure in my organization.
Thanks,
Punita
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Would be thankful if you are able to share the concrete information after your meeting with the CA as I am also in the process of restructuring the salary structure in my organization.
Thanks,
Punita
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what are the components of salary in a non profit organization in India? What is the salary administration structure for non profit organization?
From India, Hyderabad
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From India, Hyderabad
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hi,,, im doin my final yr project. i hav plans of doin a proj in compensation.. can anyone suggest some good topics in this area.. the duration is 4 months... thank u :) regards, samyuktha
From India, Madras
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From India, Madras
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Hi all,
Let me try to give you an idea about components of salary:
1) Basic - 35 to 40% of gross (taxable)
2) HRA - 40% of basic (in case of metro cities 50% of basic) (exempted from tax if the employee provides rent receipt at 10% of gross annual income or as defined in salary and as per receipts produced)
3) Conveyance = 800 per month (800 * 12 = 9600 p.a.) (exempted from tax)
4) Medical Reimbursement = 1250 per month (1250 * 12 = 15000 p.a.) (exempted from taxable income)
5) LTA = 1250 per month (1250 * 12 = 15000 p.a.) (can be exempted from tax twice in a block of 4 years)
6) Meal allowance (cannot be more than 65 Rs per day, so 16250 p.a. if 250 days working).
You can put the remaining amount in Special Allowance (the whole of it is taxable) or account for it in other allowances such as uniform allowance (up to 10,000 p.a.) (not taxable), Internet access allowance, phone allowance, professional enrichment allowance, entertainment allowance, City compensatory allowance (20% of basic) (taxable), etc.
Then in case there is PF deduction:
1) Employer's contribution to PF = 12% of basic + DA (8.33% in FPF (Family Pension Fund) + 3.67% in EPF)
2) Employee's contribution to PF = 12% of basic + DA (all in EPF)
If the gross salary of the employee is less than 10000, then he comes under ESI. In case ESI is applicable in the organization:
1) Employee's contribution to ESI = 1.75% of salary
2) Employer's contribution to ESI = 4.75% of salary
Tax slabs:
0 - 1,00,000 = 0%
1,00,001 - 1,50,000 = 10%
150,001 - 2,50,000 = 20%
2,50,001 onwards = 30%
Neha :)
From India, Chandigarh
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Let me try to give you an idea about components of salary:
1) Basic - 35 to 40% of gross (taxable)
2) HRA - 40% of basic (in case of metro cities 50% of basic) (exempted from tax if the employee provides rent receipt at 10% of gross annual income or as defined in salary and as per receipts produced)
3) Conveyance = 800 per month (800 * 12 = 9600 p.a.) (exempted from tax)
4) Medical Reimbursement = 1250 per month (1250 * 12 = 15000 p.a.) (exempted from taxable income)
5) LTA = 1250 per month (1250 * 12 = 15000 p.a.) (can be exempted from tax twice in a block of 4 years)
6) Meal allowance (cannot be more than 65 Rs per day, so 16250 p.a. if 250 days working).
You can put the remaining amount in Special Allowance (the whole of it is taxable) or account for it in other allowances such as uniform allowance (up to 10,000 p.a.) (not taxable), Internet access allowance, phone allowance, professional enrichment allowance, entertainment allowance, City compensatory allowance (20% of basic) (taxable), etc.
Then in case there is PF deduction:
1) Employer's contribution to PF = 12% of basic + DA (8.33% in FPF (Family Pension Fund) + 3.67% in EPF)
2) Employee's contribution to PF = 12% of basic + DA (all in EPF)
If the gross salary of the employee is less than 10000, then he comes under ESI. In case ESI is applicable in the organization:
1) Employee's contribution to ESI = 1.75% of salary
2) Employer's contribution to ESI = 4.75% of salary
Tax slabs:
0 - 1,00,000 = 0%
1,00,001 - 1,50,000 = 10%
150,001 - 2,50,000 = 20%
2,50,001 onwards = 30%
Neha :)
From India, Chandigarh
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hi all! What are taxable benefits and no taxable.please break up components TAXABLE-NON TAXABLE yours kumar
From India, Hyderabad
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From India, Hyderabad
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What are the guidelines for calculating BASIC, DA, HRA, Conveyance Allowances in Salary fixation to a new employee
From India, Mumbai
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From India, Mumbai
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Hi all,
Please add deduction factors too. This is also a component of salary. I am mentioning a few:
1) Employees' Provident Fund
2) ESIC
3) Profession Tax
4) Labour Welfare Fund
5) LIC (if attached to salary)
These are general deductions; I hope other members will add more.
Regards
From India, Nagpur
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Please add deduction factors too. This is also a component of salary. I am mentioning a few:
1) Employees' Provident Fund
2) ESIC
3) Profession Tax
4) Labour Welfare Fund
5) LIC (if attached to salary)
These are general deductions; I hope other members will add more.
Regards
From India, Nagpur
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Hi,
Well, my current package is 2.5 lakhs as I am a fresher, but my take-home is less. The rest amount goes into superannuation, medical reimbursement, LTC, etc. So, I want to know if it is possible for my company to include that medical benefit within the range of Rs 15,000 as a part of salary. Is it also possible for superannuation, and will it be taxable? Please help me because I have been asked to restructure the CTC of my company.
From India, Bhubaneswar
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Well, my current package is 2.5 lakhs as I am a fresher, but my take-home is less. The rest amount goes into superannuation, medical reimbursement, LTC, etc. So, I want to know if it is possible for my company to include that medical benefit within the range of Rs 15,000 as a part of salary. Is it also possible for superannuation, and will it be taxable? Please help me because I have been asked to restructure the CTC of my company.
From India, Bhubaneswar
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Hi all,
Nice to read all from you. I have one query. Is it mandatory to include HRA as a component of salary? We want to remove this component from the salary breakup, but one of my good friends is saying that it is mandatory to give a minimum of 5% of HRA as a component of salary. Can you please help me out?
Thanks & regards,
Bibek Banerjee
From India, Calcutta
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Nice to read all from you. I have one query. Is it mandatory to include HRA as a component of salary? We want to remove this component from the salary breakup, but one of my good friends is saying that it is mandatory to give a minimum of 5% of HRA as a component of salary. Can you please help me out?
Thanks & regards,
Bibek Banerjee
From India, Calcutta
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Hi Expertisee’s, Can anyone please let me know what are the tax percentage and tax limit amount for all the salary component list..... Regards, Suresh Gopu
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Hi Taruna,
Basic (40%)
HRA (50% or 40% as the case may be)
Medical Allowances
Conveyance Allowances (Up to 800 pm)
Special Allowances: (Yes, it is fully taxable. If not specified, it is only exempt under section 10(14) to the extent the amount is utilized for the specified purpose for which the allowance is received.
Hope this is clear.
Cheers,
Prashant
Manager - HR
From India, New Delhi
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Basic (40%)
HRA (50% or 40% as the case may be)
Medical Allowances
Conveyance Allowances (Up to 800 pm)
Special Allowances: (Yes, it is fully taxable. If not specified, it is only exempt under section 10(14) to the extent the amount is utilized for the specified purpose for which the allowance is received.
Hope this is clear.
Cheers,
Prashant
Manager - HR
From India, New Delhi
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Hi Taruna,
Basic (40%)
HRA (50% or 40% as the case may be)
Medical Allowances
Conveyance Allowances (800 pm max)
Special Allowances: Yes, it is fully taxable. If not specified, it is only exempt under section 10(14) to the extent the amount is utilized for the specified purpose for which the allowance is received.
Hope this is clear.
Cheers,
Prashant
Manager - HR
From India, New Delhi
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Basic (40%)
HRA (50% or 40% as the case may be)
Medical Allowances
Conveyance Allowances (800 pm max)
Special Allowances: Yes, it is fully taxable. If not specified, it is only exempt under section 10(14) to the extent the amount is utilized for the specified purpose for which the allowance is received.
Hope this is clear.
Cheers,
Prashant
Manager - HR
From India, New Delhi
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Rs.15,000 medical reimbursement is non taxable to the employee if bills are produced but at the same time company has to pay FBT on it.
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hi i have doubt on LTA. is it up to 15000 pa is nontaxable or actuals incurred in 2 journeys in a block of 4 years. plz reply ,,.. regards, gaurav
From India, Vadodara
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From India, Vadodara
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Hello everyone,
I am a fresh HR working for a software service provider startup company. I have to configure payroll for my company. Can anyone tell me what are the components that I should include and please let me know the important calculations as well.
Regards,
Arpita Kapoor
From India, Pune
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I am a fresh HR working for a software service provider startup company. I have to configure payroll for my company. Can anyone tell me what are the components that I should include and please let me know the important calculations as well.
Regards,
Arpita Kapoor
From India, Pune
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is there like a checklist for this? please send me if any thing of such sort is maintained. like the taxable ceieling limit and the basic headers thanks
From India, New Delhi
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From India, New Delhi
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Reimbursement of Uniform Purchase upto 10K and maintenance upto 6K annually which sums upto Rs.16K annually as per section 10(14)
From India, Bhopal
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From India, Bhopal
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Hi, please tell me mobile phone allowance and Fuel Allowance (Petrol/Diesel) will be taxable or not. Mithun 09289298203
From India, Calcutta
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From India, Calcutta
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Dear All Please let me know what is the logic of keeping Basic salary as 30 to 40 % of the total salary and HRA as 40 to 50 % of the total salary. Regards Shalini
From India, Pune
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From India, Pune
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I am posting this query for the first time in your forum. I want to know in what way a salary of Rs. 55,000 per month can be bifurcated under different component heads. Please mention the component heads. Please suggest a way that can be suitable for reducing tax liabilities.
From India, Mumbai
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From India, Mumbai
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Many components constitute the salary structure in India. Some of these components are fixed, some are variable, and some are deductible from the employee's salary.
Following are the major salary components in India:
1. Basic Salary
2. House Rent Allowance
3. Dearness Allowance
4. Conveyance Allowance
5. Medical Allowance
6. Mobile Allowance
7. Children's Education Allowance
8. Books & Periodicals Allowance
9. Leave Travel Allowance
10. Bonus
11. Gratuity
12. Arrears
13. Incentives
14. Income Tax
15. Provident Fund
16. Professional Tax
17. Employee State Insurance Premium
18. National Pension Scheme
19. Labour Welfare Fund
20. Other Deductions
From India, Mumbai
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Following are the major salary components in India:
1. Basic Salary
2. House Rent Allowance
3. Dearness Allowance
4. Conveyance Allowance
5. Medical Allowance
6. Mobile Allowance
7. Children's Education Allowance
8. Books & Periodicals Allowance
9. Leave Travel Allowance
10. Bonus
11. Gratuity
12. Arrears
13. Incentives
14. Income Tax
15. Provident Fund
16. Professional Tax
17. Employee State Insurance Premium
18. National Pension Scheme
19. Labour Welfare Fund
20. Other Deductions
From India, Mumbai
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INDIA SALARY HANDBOOK 2008 - 09.pdf