My organization (a Pvt Ltd company) has fewer than 20 employees, and I need help in obtaining the best salary break-up structure that would benefit employees with taxes. Also, is there any formal document to which I can refer for guidelines?
Thanks,
Megha
From India, Thane
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Thanks,
Megha
From India, Thane
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As per my knowledge, below is one of the best pay structures:
1. 60% of gross - Basic (as per minimum wages)
2. 40% of Basic - HRA (Exemption from IT as per HR rules)
3. 5% of Basic - Conveyance (IT Exemption 800 PM)
4. 5% of Basic - Uniform (Full exemption from IT)
5. 6.94% of Basic - Medical (1250 IT exemption PM)
6. 1.67% of Basic - Education (250 PM per 2 children)
7. 8.05% of Basic - LTA (The actual expenditure exemption for a family tour once a year)
Please review and let me know your thoughts.
Thank you.
Regards
From India, Hyderabad
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1. 60% of gross - Basic (as per minimum wages)
2. 40% of Basic - HRA (Exemption from IT as per HR rules)
3. 5% of Basic - Conveyance (IT Exemption 800 PM)
4. 5% of Basic - Uniform (Full exemption from IT)
5. 6.94% of Basic - Medical (1250 IT exemption PM)
6. 1.67% of Basic - Education (250 PM per 2 children)
7. 8.05% of Basic - LTA (The actual expenditure exemption for a family tour once a year)
Please review and let me know your thoughts.
Thank you.
Regards
From India, Hyderabad
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Employee Benefits.doc