Hi Everyone, I'm hoping to better understand the typical salary structure for companies in Lucknow. Specifically, I'd like to clarify the following:
- Breakdown of CTC (Cost To Company)
- Gross salary
- Net Pay vs. CTC
- Understanding Deductions
- Statutory Bonus
- TDS
Any insights you can share about the Lucknow market and these salary components would be greatly appreciated. Thanks!
From India, Lucknow
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- Breakdown of CTC (Cost To Company)
- Gross salary
- Net Pay vs. CTC
- Understanding Deductions
- Statutory Bonus
- TDS
Any insights you can share about the Lucknow market and these salary components would be greatly appreciated. Thanks!
From India, Lucknow
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Hi Aishwarya,
Currently, there is no rule mandating standard breakups in the salary structure.
Deciding the wages/salary of employees
- Have Basic & DA, which should not be less than the scheduled minimum wages.
- Allocate 40% of the HRA component from the basic wages.
- Other components can be considered as various allowances, including tax-free allowances, depending on the total wages of the employee.
Deductions
- No PT for UP; hence, it's 0.
- ESI at 0.75% on total wages if the gross salary is up to 21,000/-
- EPF at 12%, which might be restricted to the ceiling limit of 15,000/-
- TDS as applicable
Company contributions towards gratuity, ESI, EPF, insurance, etc., may be part of CTC.
From India, Bangalore
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653Currently, there is no rule mandating standard breakups in the salary structure.
Deciding the wages/salary of employees
- Have Basic & DA, which should not be less than the scheduled minimum wages.
- Allocate 40% of the HRA component from the basic wages.
- Other components can be considered as various allowances, including tax-free allowances, depending on the total wages of the employee.
Deductions
- No PT for UP; hence, it's 0.
- ESI at 0.75% on total wages if the gross salary is up to 21,000/-
- EPF at 12%, which might be restricted to the ceiling limit of 15,000/-
- TDS as applicable
Company contributions towards gratuity, ESI, EPF, insurance, etc., may be part of CTC.
From India, Bangalore
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Salary structure CTC 15000.xlsx
Creating a Competitive Salary Structure.doc