Hi, we are a start-up and we are hiring an employee with a salary of 40K. However, I don't know how to create a salary structure. Our company currently has a size of 5-10 employees and we do not deduct any PF or ESI. Can you please advise on how to create a salary structure, including determining the basic salary and other allowances or wages?
From India, Mohali
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1From India, Mohali
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Salary Structure Guidelines
You can prepare a salary structure according to the standard salary breakup heads.
Basic - 50% of gross
HRA - 40-50% of basic
Conveyance - 1600
Medical - 1250
Children's education allowance - 200
Special allowance - balance
This structure is standard for high-salary individuals. For those with lower salaries, such as those not earning high amounts:
Basic - as per the minimum wage
HRA - 40-50% of basic
Conveyance - as per calculation but not more than 1600
Medical - as per salary but not exceeding 1250
Special Allowance - balance
PF and ESIC Calculation
PF calculation - earn basic * 12%
ESIC - earn gross * 1.75%
Thanks & Regards
From India, Panipat
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You can prepare a salary structure according to the standard salary breakup heads.
Basic - 50% of gross
HRA - 40-50% of basic
Conveyance - 1600
Medical - 1250
Children's education allowance - 200
Special allowance - balance
This structure is standard for high-salary individuals. For those with lower salaries, such as those not earning high amounts:
Basic - as per the minimum wage
HRA - 40-50% of basic
Conveyance - as per calculation but not more than 1600
Medical - as per salary but not exceeding 1250
Special Allowance - balance
PF and ESIC Calculation
PF calculation - earn basic * 12%
ESIC - earn gross * 1.75%
Thanks & Regards
From India, Panipat
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Whose basic salary less than or equal to 15000 you have to deduct his pf and whose gross salary less than or equl to 15000 deduct his esic
From India, Panipat
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From India, Panipat
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SALARY with out PF Deduction.xls
Employee Benefits.doc