Hi All,
I am working as an HR Recruiter in one of the IT companies. I want to shift my career path into HR Generalist. I recently attended an interview for the position of HR Generalist in a company where the HR was primarily focused on payroll. During the interview, she presented a scenario asking how I would split a salary of 3 lakhs per annum, to which I couldn't provide a satisfactory answer.
Could you please help me understand how salary breakdowns are typically done in the IT industry? Your valuable insights would be greatly appreciated.
Thank you all in advance. I am eagerly waiting for your responses.
From India, Bangalore
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1I am working as an HR Recruiter in one of the IT companies. I want to shift my career path into HR Generalist. I recently attended an interview for the position of HR Generalist in a company where the HR was primarily focused on payroll. During the interview, she presented a scenario asking how I would split a salary of 3 lakhs per annum, to which I couldn't provide a satisfactory answer.
Could you please help me understand how salary breakdowns are typically done in the IT industry? Your valuable insights would be greatly appreciated.
Thank you all in advance. I am eagerly waiting for your responses.
From India, Bangalore
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Hi! The basic components that every company has are as follows:
- Basic = 50% or 40% of gross
- HRA = 40% or 50% of basic (Depending on Metro & non-metro)
- CCA = 20% of Basic
- Medical = Rs 1250/- per month
- Children Education = Rs 100/- per month (Rs 1200/- per annum)
- Bonus = 8.33% of basic normally (rest depends on the company)
- PF = 12% of basic
- ESI = depending on gross (if applicable)
- Telephone expenses = Rs 750/- per month
The remaining components such as Travelling Allowances, Food Allowance, Petrol Allowances, etc., completely depend on the company.
Chitra
From India, Mumbai
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- Basic = 50% or 40% of gross
- HRA = 40% or 50% of basic (Depending on Metro & non-metro)
- CCA = 20% of Basic
- Medical = Rs 1250/- per month
- Children Education = Rs 100/- per month (Rs 1200/- per annum)
- Bonus = 8.33% of basic normally (rest depends on the company)
- PF = 12% of basic
- ESI = depending on gross (if applicable)
- Telephone expenses = Rs 750/- per month
The remaining components such as Travelling Allowances, Food Allowance, Petrol Allowances, etc., completely depend on the company.
Chitra
From India, Mumbai
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hi Chitra, Thankyou so much for your valuable reply, as you have mentioned ESI is depending on the gross amount. what is the gross amount that is eligible for claiming ESI. Thank You Regards Sridhar
From India, Bangalore
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From India, Bangalore
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Hi! If an employee has gross more than 10100/- then ESI is not applicable. But if it is less than that then that, contribution is employer = 4.75% and employee = 1.75% on gross. Chitra
From India, Mumbai
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From India, Mumbai
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Dear Shridhar,
I just wanted to inform you about the contents of the payslip. The percentages vary depending on the type of organization. The components usually include: BASIC, DA, HRA, ESI, EPF, SPECIAL ALLOWANCE, CONVEYANCE, MEDICAL ALLOWANCE, MISCELLANEOUS, BONUS, LOAN/ADVANCE, etc.
Thank you.
From Hong Kong
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I just wanted to inform you about the contents of the payslip. The percentages vary depending on the type of organization. The components usually include: BASIC, DA, HRA, ESI, EPF, SPECIAL ALLOWANCE, CONVEYANCE, MEDICAL ALLOWANCE, MISCELLANEOUS, BONUS, LOAN/ADVANCE, etc.
Thank you.
From Hong Kong
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Hello, I am Sai. I recently joined the hotel industry as an assistant HR. However, I don't have any idea how to implement the functions or policies. Moreover, my HR manager has left the place as soon as I joined here. He taught me about payrolls, screening, and other things, but I lack practical experience. I really don't know how to implement policies that would help my hotel. Our hotel is new, and its growth is on the lower side. My Managing Director is expecting a lot from me. Please help me out, people.
With regards,
Sai
From India, Hyderabad
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With regards,
Sai
From India, Hyderabad
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Hi,
Attached is the salary breakup commonly used by most IT companies. Should you have any further queries, please contact me at
. ESI is not applicable in your case. Since you are interested in transitioning into HR Generalist, I advise you to familiarize yourself with the laws related to payroll management.
Best wishes,
Taru
From India, New Delhi
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Attached is the salary breakup commonly used by most IT companies. Should you have any further queries, please contact me at
Best wishes,
Taru
From India, New Delhi
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Hi,
Salary split totally depends on org policy. There are companies that hold some amount of annual salary as a variable part of the compensation. In my company, 25% of the CTC will be given based on performance and targets achieved, and the remaining 75% will be divided among the following heads:
- Basic: 40% (Non-metro) or 50% (metro)
- HRA: 50% of basic
- Travel Allowance: $800 per month
- Medical Reimbursement: $1250 per month
- Special Allowance: Balancing figure
- PF: 12% of basic (from both employee and employer)
- ESI: 1.75% of Gross (from employee) and 4.75% of Gross (from employer)
Hope this information helps you. Keep smiling.
Regards,
Neesu
From India, New Delhi
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Salary split totally depends on org policy. There are companies that hold some amount of annual salary as a variable part of the compensation. In my company, 25% of the CTC will be given based on performance and targets achieved, and the remaining 75% will be divided among the following heads:
- Basic: 40% (Non-metro) or 50% (metro)
- HRA: 50% of basic
- Travel Allowance: $800 per month
- Medical Reimbursement: $1250 per month
- Special Allowance: Balancing figure
- PF: 12% of basic (from both employee and employer)
- ESI: 1.75% of Gross (from employee) and 4.75% of Gross (from employer)
Hope this information helps you. Keep smiling.
Regards,
Neesu
From India, New Delhi
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Hi,
As many have said, salary breakdown varies among organizations. In our organization, the gross salary is divided as follows:
Monthly Earnings
- Basic: 35% of monthly gross
- HRA: 50% of Basic
- Conveyance: $800 fixed
- LTA: $1000 for some employees and $1500 for senior employees
- Medical Allowance: $1250 per month
- Research Allowance: varies from $1000 to $5000 depending on the grade
- Food Allowance: optional and provided as Sodexo to willing employees
- Telephone Allowance: varies from $500 to $1000 depending on employee grade
- Special Allowance: a balancing figure calculated as the difference between monthly gross and the sum of all the above components
Monthly Deductions
- PF (Employee's Contribution): 12% of basic
- Professional Tax (Based on Government-approved rate)
- Income Tax (Based on annual income)
CTC comprises of Annual Gross + Medical Allowance + Employer Provident Fund + Performance bonus (Up to 20% of annual gross).
Hope this information helps. Please let me know if further clarification is required.
Cheers,
Sunetra
From India, Calcutta
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As many have said, salary breakdown varies among organizations. In our organization, the gross salary is divided as follows:
Monthly Earnings
- Basic: 35% of monthly gross
- HRA: 50% of Basic
- Conveyance: $800 fixed
- LTA: $1000 for some employees and $1500 for senior employees
- Medical Allowance: $1250 per month
- Research Allowance: varies from $1000 to $5000 depending on the grade
- Food Allowance: optional and provided as Sodexo to willing employees
- Telephone Allowance: varies from $500 to $1000 depending on employee grade
- Special Allowance: a balancing figure calculated as the difference between monthly gross and the sum of all the above components
Monthly Deductions
- PF (Employee's Contribution): 12% of basic
- Professional Tax (Based on Government-approved rate)
- Income Tax (Based on annual income)
CTC comprises of Annual Gross + Medical Allowance + Employer Provident Fund + Performance bonus (Up to 20% of annual gross).
Hope this information helps. Please let me know if further clarification is required.
Cheers,
Sunetra
From India, Calcutta
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hi, i want to know how to form the role and responsibility in a concern. JD in Macro and Micro level. waiting for your valuable reply. abishek
From India, Madras
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From India, Madras
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My suggestion to you would be rather than focussing on Generalistic profile focus on your strength which is Recruitment…Lot of companies are hiring Manager, Sr. Manager, Head, AVP Recruitment and try exploring these possibilities where you can more scope rather than starting from the beginning. There is a lot of demand of Manager Recruitments in IT, BPO, Financials, Insurance, Engineering and other sectors where salary range is also compatible with that of Generalist HR ..so why don't you give it a try…which part of India u are ….
From United Kingdom
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From United Kingdom
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Dear All,
I have read that an employee receiving a gross less than 6500 should receive ESI. More than that depends upon company policy. Can anyone clarify this for me? I read this in a PDF posted only on CHR.
From India, Calcutta
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I have read that an employee receiving a gross less than 6500 should receive ESI. More than that depends upon company policy. Can anyone clarify this for me? I read this in a PDF posted only on CHR.
From India, Calcutta
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Dear Friend,
Your Salary Structure -
Basic 375000
HRA 1 50000
Conveyance 9600
Medical 15000
Spl all. 153540
PF (Empl) 9360
LTA 37500
Total CTC 750000
Exemptions
Taxable Amt Exempted Amt
Basic 375000
0
HRA
0
Conveyance 0
9600
Medical 0
15000
Spl all. 153540
0
PF (Empl)
9360
LTA
37500 (Only if you claim it once in two years)
Hence Taxable Salary is Rs. 528540. Saving up to 100,000 are exempted, out of which you already claim in PF, i.e., 9360. Now you can have savings up to Rs. 90640 (Savings may include ULIP, Insurance for Self & Spouse, MF, and other elements which give you exemption under 80C, 80CC, 10(10(D)), etc.). Hence Net Taxable Salary 437900. You fall in the 20% tax bracket and the Taxable Amt. is 87580 (p.a.). Tax per Month 7298.333.
Note (If you have taken any housing loan from any bank, then you can save the interest up to Rs. 150,000 as well.)
Now let me know if you want to know anything else pertaining to the captioned matter.
Pramod S. Bhadauriya
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Your Salary Structure -
Basic 375000
HRA 1 50000
Conveyance 9600
Medical 15000
Spl all. 153540
PF (Empl) 9360
LTA 37500
Total CTC 750000
Exemptions
Taxable Amt Exempted Amt
Basic 375000
0
HRA
0
Conveyance 0
9600
Medical 0
15000
Spl all. 153540
0
PF (Empl)
9360
LTA
37500 (Only if you claim it once in two years)
Hence Taxable Salary is Rs. 528540. Saving up to 100,000 are exempted, out of which you already claim in PF, i.e., 9360. Now you can have savings up to Rs. 90640 (Savings may include ULIP, Insurance for Self & Spouse, MF, and other elements which give you exemption under 80C, 80CC, 10(10(D)), etc.). Hence Net Taxable Salary 437900. You fall in the 20% tax bracket and the Taxable Amt. is 87580 (p.a.). Tax per Month 7298.333.
Note (If you have taken any housing loan from any bank, then you can save the interest up to Rs. 150,000 as well.)
Now let me know if you want to know anything else pertaining to the captioned matter.
Pramod S. Bhadauriya
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Dear all, with reference to i would like to have an open discussion why people from recruitment background generally not being considered for HR generalist. thnx mujib
From India, Hyderabad
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From India, Hyderabad
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Hello Chitra,
Firstly very nicely you've briefed us about salary process. But I've a query in ESI.
According to your information for ESI “SALARY” should be less than 10,000K.If a person is drawing more than 10K then He will not eligible, If I'm not WRONG Please clear my doubt. Awaiting …
From United Kingdom
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Firstly very nicely you've briefed us about salary process. But I've a query in ESI.
According to your information for ESI “SALARY” should be less than 10,000K.If a person is drawing more than 10K then He will not eligible, If I'm not WRONG Please clear my doubt. Awaiting …
From United Kingdom
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Good Chitra, You have given a very good explanation. We need such posts by senior or memebers with adequate knowledge. Friends do keep on posting.
From India, Mumbai
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From India, Mumbai
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Hr-generalist-r ose_205.doc
ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf
Salary Breakup with ESI.xls