Hi all,
I need your assistance in this regard. Can you please let me know if it is mandatory to allocate 40% of Gross Salary towards Basic, or is it that the company can decide on this and it can be flexible?
Regards,
Sashank B.
From India, Hyderabad
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7I need your assistance in this regard. Can you please let me know if it is mandatory to allocate 40% of Gross Salary towards Basic, or is it that the company can decide on this and it can be flexible?
Regards,
Sashank B.
From India, Hyderabad
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Dear Sashank, it is not necessary to keep 40% as basic on gross salary but the basic may vary from company to company but we need to keep minimum 35% as basic
From India, Hyderabad
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From India, Hyderabad
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I agree with Mr. Sivakumar. It depends on the company. For example, an employee of Future Group is getting 12k as gross, whereas his basic is less than 3k. On the other hand, an employee of IBM is getting 25k, and his basic is near about 11k. I hope this attachment will give some idea of basic and gross.
From India, Durgapur
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From India, Durgapur
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Dear Shashank,
The contents of the salary break up are as follows. You can prepare it at your own convenience. HRA would be 50% or 60% of basic salary.
Basic = between 40% - 60% of Gross
HRA = 40% or 50% of Basic salary
TA
Other Allowance
Gross Per Month = Sum of all the above.
Gross Per Annum = 12 * Gross/Month
PF Contribution = 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility is provided to employees who are not covered under ESI as the maximum ceiling for ESI is 10000/Month. If an employee receives more than this, it will be covered under Mediclaim or will depend on company policy.
Annual Total Cost = Gross Per annum + PF + ESIC
Annual total cost is also known as CTC.
I hope this is clear to you now. If you have any queries, please feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
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The contents of the salary break up are as follows. You can prepare it at your own convenience. HRA would be 50% or 60% of basic salary.
Basic = between 40% - 60% of Gross
HRA = 40% or 50% of Basic salary
TA
Other Allowance
Gross Per Month = Sum of all the above.
Gross Per Annum = 12 * Gross/Month
PF Contribution = 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility is provided to employees who are not covered under ESI as the maximum ceiling for ESI is 10000/Month. If an employee receives more than this, it will be covered under Mediclaim or will depend on company policy.
Annual Total Cost = Gross Per annum + PF + ESIC
Annual total cost is also known as CTC.
I hope this is clear to you now. If you have any queries, please feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
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Thank you, Nandu.
Obviously, it is profitable for both the employee and the employer. The employee benefits from free cashless medical assistance, while the employer also experiences some relief in terms of the medical benefits provided to the staff.
Regards,
Amit Seth.
From India, Ahmadabad
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Obviously, it is profitable for both the employee and the employer. The employee benefits from free cashless medical assistance, while the employer also experiences some relief in terms of the medical benefits provided to the staff.
Regards,
Amit Seth.
From India, Ahmadabad
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Dear S,
Basic pay is generally fixed based on the minimum amount required for a person to live. For those engaged in Government jobs, even if the government has financial disability to pay the entire salary, the Government is bound to pay the basic salary to its employees. Therefore, having a higher basic salary is advantageous to employees. Based on the basic salary, other components of the salary are considered. However, nowadays, basic salary has no clear meaning as it differs from place to place. There is no definite base followed to fix basic salary presently.
Thanks and regards,
Madhwa
From India, Mumbai
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Basic pay is generally fixed based on the minimum amount required for a person to live. For those engaged in Government jobs, even if the government has financial disability to pay the entire salary, the Government is bound to pay the basic salary to its employees. Therefore, having a higher basic salary is advantageous to employees. Based on the basic salary, other components of the salary are considered. However, nowadays, basic salary has no clear meaning as it differs from place to place. There is no definite base followed to fix basic salary presently.
Thanks and regards,
Madhwa
From India, Mumbai
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Gents, is there a program or Excel sheet that splits the CTC into various components under different heads? More importantly, is there a way to calculate the approximate tax payable and hence the 'take home' post-tax? Sorry for this repeated question, but I am an ultra-novice and pretty lost in the calculations. My HR also deducts a portion of the salary as tax, and I invariably end up overpaying. My idea in asking this question is to get close to the real amount that I take home.
My HR uses the following Excel sheet to split our salary, but this is the gross take-home. If some finance/accounting wizards can add the rest of the details as described above, it would be enlightening.
From India, Bangalore
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My HR uses the following Excel sheet to split our salary, but this is the gross take-home. If some finance/accounting wizards can add the rest of the details as described above, it would be enlightening.
From India, Bangalore
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hi, Everyone, I need little help from you. How can make a letter for advertisng agency to introduce our product. Parvati
From India, Indore
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From India, Indore
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Yes, I agree with Mr. Amith and Madhwa. But as I think initially, we have to follow the minimum wages as per the government, i.e., basic + DA for the different categories or nature of work of that particular state. If an employer gives more than that, it is not an issue. So, based on these factors, you can further fix the percentage, i.e., calculation.
Regards,
Ramnath G Naik
From India, Bangalore
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Regards,
Ramnath G Naik
From India, Bangalore
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Dear all,
I want to add one more thing. The basic pay should not be less than the minimum wages applicable to the category he/she belongs to, such as unskilled/semi-skilled/skilled/clerical job/qualification in clerical job for graduates & undergraduates.
Shish Ram Uniyal
09811681660
From India, New Delhi
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I want to add one more thing. The basic pay should not be less than the minimum wages applicable to the category he/she belongs to, such as unskilled/semi-skilled/skilled/clerical job/qualification in clerical job for graduates & undergraduates.
Shish Ram Uniyal
09811681660
From India, New Delhi
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I thank all of you for posting such detailed information with respect to salary breakup. I had these doubts for a very long time and I am happy to get it clarified. Regards
From India, Madras
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From India, Madras
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I am a senior mechanical engineer. My total annual salary is $360,000. I would like to understand how my salary structure is broken down monthly. Could you please provide me with the format for the monthly salary slip and the monthly base salary structure?
Please reply immediately.
Thank you.
Looking forward to your response.
Dinesh Panchal
From India, Ahmadabad
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Please reply immediately.
Thank you.
Looking forward to your response.
Dinesh Panchal
From India, Ahmadabad
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Dear Mr. Dinesh,
Your monthly salary structure may be like this:
- Basic salary: 15000
- HRA: 7500
- CCA: 800
- Other Allowances: 5450
- Gross Salary: 28750
- Medical Reimbursement: 1250
- Monthly Salary: 30000
However, if it is in terms of CTC, it may involve other components such as employer's PF contribution, Bonus, Gratuity, and any other indirect costs.
Regards,
Amit Seth.
From India, Ahmadabad
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Your monthly salary structure may be like this:
- Basic salary: 15000
- HRA: 7500
- CCA: 800
- Other Allowances: 5450
- Gross Salary: 28750
- Medical Reimbursement: 1250
- Monthly Salary: 30000
However, if it is in terms of CTC, it may involve other components such as employer's PF contribution, Bonus, Gratuity, and any other indirect costs.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi Friends,
As I referred to some people discussing salary breakups, I noticed that PF is 12% of the gross, which I agree with. However, they mentioned ESI as 4.75% of the gross. In my company, ESI is deducted at 1.75% of the gross. Now, I am confused about which one is correct. Immediate reply please.
Thank you,
gujuala.
From India, Bangalore
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As I referred to some people discussing salary breakups, I noticed that PF is 12% of the gross, which I agree with. However, they mentioned ESI as 4.75% of the gross. In my company, ESI is deducted at 1.75% of the gross. Now, I am confused about which one is correct. Immediate reply please.
Thank you,
gujuala.
From India, Bangalore
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Dear Gujuala,
First of all, PF is calculated at 12% of the Basic salary, not on Gross. Actually, in the salary annexure, it must be in terms of the CTC, where they have shown the employer's contribution towards PF & ESIC. The employer's ESIC contribution is 4.75% of the Gross salary. 1.75% contribution is on the employee's side.
Regards,
Amit Seth.
From India, Ahmadabad
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First of all, PF is calculated at 12% of the Basic salary, not on Gross. Actually, in the salary annexure, it must be in terms of the CTC, where they have shown the employer's contribution towards PF & ESIC. The employer's ESIC contribution is 4.75% of the Gross salary. 1.75% contribution is on the employee's side.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi,
Find below the sample format of the Appointment Letter-
Appointment letter
____/HRD/____
19th November 2006
Mr. ___________
______________
______________
Dear Mr.________,
With reference to your application and subsequent interview with us, we are pleased to appoint you as Designation in our organization on the following terms and conditions.
Date of Joining: You have joined us on 13th November 2006.
Salary: Your Annual Total Employment Cost to the company would be __________ (___________ rupees), the details of which is been given in the Annexure attached below.
Place/Transfer: Your present place of work will be at ________, but during the course of the service, you shall be liable to be posted / transferred anywhere to serve any of the Company's Projects or any other establishment in India or outside, at the sole discretion of the Management.
Probation/Confirmation: You will be on a Probation period for the Six months. Based on your performance your services will be confirmed with the company in written after six months.
During the probation period your services can be terminated with seven days notice on either side and without any reasons whatsoever. If your services are found satisfactory during the probation period, you will be confirmed in the present position and thereafter your services can be terminated on one month's notice on either side.
Absence for a continuous period of ten days without prior approval of your superior, (including overstay on leave / training) would result in your losing your lien on the service and the same shall automatically come to an end without any notice or intimation.
Leave: You will be eligible to the benefits of the Company's Leave Rules on your confirmation in the Company's Service.
During the period of your employment with the Company, you will devote full time to the work of the Company. Further, you will not take up any other employment or assignment or any office, honorary or for any consideration, in cash or in kind or otherwise, without the prior written permission of the Company.
1. You will not (except in the normal course of the Company's business) publish any article or statement, deliver any lecture or broadcast or make any communication to the press, including magazine publication relating to the Company's products or to any matter with which the Company may be concerned, unless you have previously applied to and obtained the written permission from the Company.
2. You will be required to maintain utmost secrecy in respect of Project documents, commercial offer, design documents, Project cost & Estimation, Technology, Software packages license, Company's polices, Company's patterns & Trade Mark and Company's Human assets profile.
3. You will be required to comply with all such rules and regulations as the Company may frame from time to time.
4. Any of our technical or other important information which might come into your possession during the continuance of your service with us shall not be disclosed, divulged or made public by you even thereafter.
5. If at any time in our opinion, which is final in this matter you are found non- performer or guilty of fraud, dishonest, disobedience, disorderly behavior, negligence, indiscipline, absence from duty without permission or any other conduct considered by us deterrent to our interest or of violation of one or more terms of this letter, your services may be terminated without notice and on account of reason of any of the acts or omission the company shall be entitled to recover the damages from you.
6. You will not accept any present, commission or any sort of gratification in cash or kind from any person, party or firm or Company having dealing with the company and if you are offered any, you should immediately report the same to the Management.
7. This appointment letter is being issued to you on the basis of the information and particulars furnished by you in your application (including bio-data), at the time of your interview and subsequent discussions. If it transpires that you have made a false statement (or have not disclosed a material fact) resulting in your being offered this appointment, the Management may take such action as it deems fit in its sole discretion, including termination of your employment.
8. You will be responsible for safekeeping and return in good condition and order of all Company property, which may be in your use, custody or charge.
Please sign and return to the undersigned the duplicate copy of this letter signifying your acceptance.
We welcome you to The ________ family and look forward to a fruitful collaboration.
With best wishes,
For, Company name
Name:
Designation
From India, Ahmadabad
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Find below the sample format of the Appointment Letter-
Appointment letter
____/HRD/____
19th November 2006
Mr. ___________
______________
______________
Dear Mr.________,
With reference to your application and subsequent interview with us, we are pleased to appoint you as Designation in our organization on the following terms and conditions.
Date of Joining: You have joined us on 13th November 2006.
Salary: Your Annual Total Employment Cost to the company would be __________ (___________ rupees), the details of which is been given in the Annexure attached below.
Place/Transfer: Your present place of work will be at ________, but during the course of the service, you shall be liable to be posted / transferred anywhere to serve any of the Company's Projects or any other establishment in India or outside, at the sole discretion of the Management.
Probation/Confirmation: You will be on a Probation period for the Six months. Based on your performance your services will be confirmed with the company in written after six months.
During the probation period your services can be terminated with seven days notice on either side and without any reasons whatsoever. If your services are found satisfactory during the probation period, you will be confirmed in the present position and thereafter your services can be terminated on one month's notice on either side.
Absence for a continuous period of ten days without prior approval of your superior, (including overstay on leave / training) would result in your losing your lien on the service and the same shall automatically come to an end without any notice or intimation.
Leave: You will be eligible to the benefits of the Company's Leave Rules on your confirmation in the Company's Service.
During the period of your employment with the Company, you will devote full time to the work of the Company. Further, you will not take up any other employment or assignment or any office, honorary or for any consideration, in cash or in kind or otherwise, without the prior written permission of the Company.
1. You will not (except in the normal course of the Company's business) publish any article or statement, deliver any lecture or broadcast or make any communication to the press, including magazine publication relating to the Company's products or to any matter with which the Company may be concerned, unless you have previously applied to and obtained the written permission from the Company.
2. You will be required to maintain utmost secrecy in respect of Project documents, commercial offer, design documents, Project cost & Estimation, Technology, Software packages license, Company's polices, Company's patterns & Trade Mark and Company's Human assets profile.
3. You will be required to comply with all such rules and regulations as the Company may frame from time to time.
4. Any of our technical or other important information which might come into your possession during the continuance of your service with us shall not be disclosed, divulged or made public by you even thereafter.
5. If at any time in our opinion, which is final in this matter you are found non- performer or guilty of fraud, dishonest, disobedience, disorderly behavior, negligence, indiscipline, absence from duty without permission or any other conduct considered by us deterrent to our interest or of violation of one or more terms of this letter, your services may be terminated without notice and on account of reason of any of the acts or omission the company shall be entitled to recover the damages from you.
6. You will not accept any present, commission or any sort of gratification in cash or kind from any person, party or firm or Company having dealing with the company and if you are offered any, you should immediately report the same to the Management.
7. This appointment letter is being issued to you on the basis of the information and particulars furnished by you in your application (including bio-data), at the time of your interview and subsequent discussions. If it transpires that you have made a false statement (or have not disclosed a material fact) resulting in your being offered this appointment, the Management may take such action as it deems fit in its sole discretion, including termination of your employment.
8. You will be responsible for safekeeping and return in good condition and order of all Company property, which may be in your use, custody or charge.
Please sign and return to the undersigned the duplicate copy of this letter signifying your acceptance.
We welcome you to The ________ family and look forward to a fruitful collaboration.
With best wishes,
For, Company name
Name:
Designation
From India, Ahmadabad
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Employee Benefits.doc