What is deferred salary? How it is calculated? Is it applicable to all companies or it changes based on the company’s compensation policy?
From India, Bangalore
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5From India, Bangalore
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In a salary cost-to-company basis calculation, there are mainly 3 components of salary:
1) Immediate receivables
2) Deferred Salary
3) Taxes & compulsory deductions.
Focusing on deferred salary:
Gross salary minus the deductions equals the cash in hand salary component. That is: Basic + HRA + Edu All + Conv. + Sp. All + Cash cony = GROSS SALARY (DEDUCT TAXES HERE TO GET CASH IN HAND).
The remaining components of your salary, namely these, are all deferred salary: Company's contribution to PF + Med. p.a + LTA p.a + Any special allowances like upcountry allowance p.a. + Bonus p.a + Entertainment.
Hope this information helps you so far.
From India, Mumbai
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1) Immediate receivables
2) Deferred Salary
3) Taxes & compulsory deductions.
Focusing on deferred salary:
Gross salary minus the deductions equals the cash in hand salary component. That is: Basic + HRA + Edu All + Conv. + Sp. All + Cash cony = GROSS SALARY (DEDUCT TAXES HERE TO GET CASH IN HAND).
The remaining components of your salary, namely these, are all deferred salary: Company's contribution to PF + Med. p.a + LTA p.a + Any special allowances like upcountry allowance p.a. + Bonus p.a + Entertainment.
Hope this information helps you so far.
From India, Mumbai
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SALARY SHEET CALCULATION.xls
Salary calculation.doc