Hi everybody, I hav an interview scheduled aftr 2 dys and so wntd 2 knw about Payroll. What is Payroll and what r its components? Can anybdy help me! Plz i’m waiting. Pali
From India, New Delhi
Acknowledge(0)
Amend(0)
11From India, New Delhi
Acknowledge(0)Amend(0)
Hi Kiran,
Payroll is a method used in organizations for employees' salary processing. HR always has the information on the employees' attendance. In the Excel sheet, you have the employees' IDs and names, the number of working days in that month, and the number of days each employee has attended the office. After documenting this, you will forward the HEAD COUNT to the accounts department. The Accounts department holds the salary structure of each employee, and depending on the information you forwarded, they will calculate the salary of each employee and credit it to their respective bank accounts.
Hope this information will help you.
Regards, Kiran.
From Netherlands
Acknowledge(0)Amend(0)
Payroll is a method used in organizations for employees' salary processing. HR always has the information on the employees' attendance. In the Excel sheet, you have the employees' IDs and names, the number of working days in that month, and the number of days each employee has attended the office. After documenting this, you will forward the HEAD COUNT to the accounts department. The Accounts department holds the salary structure of each employee, and depending on the information you forwarded, they will calculate the salary of each employee and credit it to their respective bank accounts.
Hope this information will help you.
Regards, Kiran.
From Netherlands
Acknowledge(0)Amend(0)
Hi Pali,
Payroll is divided into two parts, viz:
Monthly payroll, which includes the following:
- Basic salary
- HRA
- Conveyance
- Special allowance
Annual payroll:
- Medical Reimbursement
- LTA
- Meal Vouchers
In payroll on a monthly basis, the monthly breakup is paid and is subject to the following deductions, viz:
- Provident Fund, which is 12% of the basic salary
- Professional Tax
- Income Tax
- Other deductions, which can be a loan or advance, etc.
Net take-home - Rs ....
To answer your query on Payroll, please note the following points:
a. Payroll is nothing but the salaries/breakups of the same of the employees in the organization.
b. Payroll will consist of (normally) the Employee Code no. / Name / Date of joining / No. of days worked (30 or 31 depending on the month) + Basic Salary + allowances (depending on the number of components) = Gross Salary.
c. From the Gross salary, there will be deductions ranging from the statutory deductions like PF / ESI where applicable / Profession Tax / Income Tax where applicable / Loan taken by the employee (this is internal) = NET SALARY.
This is what payroll is.
Thanks,
dsv
From India, Delhi
Acknowledge(6)
Amend(0)
Payroll is divided into two parts, viz:
Monthly payroll, which includes the following:
- Basic salary
- HRA
- Conveyance
- Special allowance
Annual payroll:
- Medical Reimbursement
- LTA
- Meal Vouchers
In payroll on a monthly basis, the monthly breakup is paid and is subject to the following deductions, viz:
- Provident Fund, which is 12% of the basic salary
- Professional Tax
- Income Tax
- Other deductions, which can be a loan or advance, etc.
Net take-home - Rs ....
To answer your query on Payroll, please note the following points:
a. Payroll is nothing but the salaries/breakups of the same of the employees in the organization.
b. Payroll will consist of (normally) the Employee Code no. / Name / Date of joining / No. of days worked (30 or 31 depending on the month) + Basic Salary + allowances (depending on the number of components) = Gross Salary.
c. From the Gross salary, there will be deductions ranging from the statutory deductions like PF / ESI where applicable / Profession Tax / Income Tax where applicable / Loan taken by the employee (this is internal) = NET SALARY.
This is what payroll is.
Thanks,
dsv
From India, Delhi
Acknowledge(6)+1 more
Amend(0)
Hi,
Components of payroll include:
- Basic salary (Basic Wage + DA + Retaining Allowance)
- HRA (10-40% of the basic depending on the industry and sector)
- Other factors
- Medical
- Conveyance
- Other allowances = gross salary
Deductions on behalf of the employee:
- 12% of the basic wages (PF)
- 1.75% of the gross salary (ESI)
Gross salary - deductions = net in hand
Additions on behalf of the employer:
- 12% of the basic wages (PF)
- 4.75% of the gross salary (ESI)
Gross salary + additions = CTC
With Regards,
Kapil Kaushal
From India, Chandigarh
Acknowledge(0)Amend(0)
Components of payroll include:
- Basic salary (Basic Wage + DA + Retaining Allowance)
- HRA (10-40% of the basic depending on the industry and sector)
- Other factors
- Medical
- Conveyance
- Other allowances = gross salary
Deductions on behalf of the employee:
- 12% of the basic wages (PF)
- 1.75% of the gross salary (ESI)
Gross salary - deductions = net in hand
Additions on behalf of the employer:
- 12% of the basic wages (PF)
- 4.75% of the gross salary (ESI)
Gross salary + additions = CTC
With Regards,
Kapil Kaushal
From India, Chandigarh
Acknowledge(0)Amend(0)
Where do Super Annuation and Gartuity be included?. Gross Salary side or Benefits side?. Do they form part of CTC?
Acknowledge(3)
Amend(0)
Acknowledge(3)Amend(0)
hi, Pali That was complete details for payroll management.. Can you tell me what all things to be taken care when submitting a quotation for Off roll payroll management. With regards Mithesh
From India, Ahmadabad
Acknowledge(0)Amend(0)
From India, Ahmadabad
Acknowledge(0)Amend(0)
Hi dsv, The payroll which you have explained was very helpful. now friends can anyone please explain me how basic, HRA, conveyance etc are calculated out of CTC. Its Urgent. Regards, Neha.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
You may check this payroll resources. Accurate information on payroll processing including salary structuring, ESI, EPF, PT, IT, etc. all at one place.
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SALARY SHEET CALCULATION.xls
Salary calculation.doc