SALARY STRUCTURE FOR EPF WITH APPLICABLE ACT SALARY FOR BASIC ,DA,HRA & OTH ALW IF PF APPLICABLE OTHER ALLWANCE ?. YES / NO. PLEASE SEND DETAILS. REGARDS SIVA
From India, New Delhi
7From India, New Delhi
Hi Siva.
According to EPF Act, PF is been deducted on Basic and DA only.. Not even HRA or other Allowance..
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
TA
Other Allowance
MobileReimbursement / Month
Gross Per Month = Sum of all the above.
GrossPer Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESIContribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximumceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount asBonus
Annual Fixed GrossCost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
According to EPF Act, PF is been deducted on Basic and DA only.. Not even HRA or other Allowance..
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
TA
Other Allowance
MobileReimbursement / Month
Gross Per Month = Sum of all the above.
GrossPer Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESIContribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximumceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount asBonus
Annual Fixed GrossCost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
Hi Amit, Need help with re-designing our company salary stucture. Would be interested in some freelance work and help me design the salary stucture. Thanks, Shahida
From India, Bangalore
From India, Bangalore
Hi AMIT,
With ref. to your reply. Requesting you to share your ideas about the following-
1.What is the difference between MEDICLAIM & MEDICAL Reimbursement . & who are eligible for Medical remb.
2.What is the difference between Bonus and Exgratia.
Thanks
Sandeep
From India, Delhi
With ref. to your reply. Requesting you to share your ideas about the following-
1.What is the difference between MEDICLAIM & MEDICAL Reimbursement . & who are eligible for Medical remb.
2.What is the difference between Bonus and Exgratia.
Thanks
Sandeep
From India, Delhi
Hi Sandeep,
Medical Reimbursement and Mediclaim are two different things..
Mediclaim reimbursement is the amount which most of the company pay to employees and that is been included in the CTC. It is been paid after producing a Bill of the same, 1250 /Month is the limit which is exempted from Tax even. Generally company pay it quarterly.
This facility is extended to those employees who are covered under Tax slabs..
Whereas Mediclaim is that facility which is been provided to the employees in the form of Mediclaim Card or Health Card.. This is been provided by so many Insurance Companies at the payment of a fixed premium for a year..
The insurance amount is also been included in the CTC.
Bonus is the amount which is been paid to the employees.. after calculation of profits n all.. Whereas Ex-Gratia is an amount which is been fixed and paid at the time of Dipawali on pro-rata basis and its also included in the CTC.
Hopw now it will be fine with you..
Regards,
Amit Seth.
From India, Ahmadabad
Medical Reimbursement and Mediclaim are two different things..
Mediclaim reimbursement is the amount which most of the company pay to employees and that is been included in the CTC. It is been paid after producing a Bill of the same, 1250 /Month is the limit which is exempted from Tax even. Generally company pay it quarterly.
This facility is extended to those employees who are covered under Tax slabs..
Whereas Mediclaim is that facility which is been provided to the employees in the form of Mediclaim Card or Health Card.. This is been provided by so many Insurance Companies at the payment of a fixed premium for a year..
The insurance amount is also been included in the CTC.
Bonus is the amount which is been paid to the employees.. after calculation of profits n all.. Whereas Ex-Gratia is an amount which is been fixed and paid at the time of Dipawali on pro-rata basis and its also included in the CTC.
Hopw now it will be fine with you..
Regards,
Amit Seth.
From India, Ahmadabad
Dear Friends,
In this Employee Provident found I may need some clarification. Asper our concern,Employer Clearly informed them YOur salary an CTC,In this case While deducting Epf from Employee salary.Employee has to contribute 12 % and How about Employer,Employer he is not ready to bare the amount,Then I need to deduct from the employee salary?.Kindly assist me any one knows.
Thanks & Regards,
N.K
In this Employee Provident found I may need some clarification. Asper our concern,Employer Clearly informed them YOur salary an CTC,In this case While deducting Epf from Employee salary.Employee has to contribute 12 % and How about Employer,Employer he is not ready to bare the amount,Then I need to deduct from the employee salary?.Kindly assist me any one knows.
Thanks & Regards,
N.K
Dear Anu,
You are very true.. it is 1.75% of employee and 4.75% of employer side..
But while we prepare CTC of an employee, we have to take care of employer's total cost over an employee.. thats why it is been added 4.75% in the CTC..
Hope your query must been solved..
Regards,
Amit Seth.
From India, Ahmadabad
You are very true.. it is 1.75% of employee and 4.75% of employer side..
But while we prepare CTC of an employee, we have to take care of employer's total cost over an employee.. thats why it is been added 4.75% in the CTC..
Hope your query must been solved..
Regards,
Amit Seth.
From India, Ahmadabad
Dear Sandeep,
.....was just following the string to pop in.. Your query is answered thus..:
Medical Reimbursement vs Mediclaim :
Reimbursement provided to employees to defray medical expenses incurred by them for hospitalization and domiciliary treatment for self and family (as per Company policy). Bills are to be produced by the employee to claim the money in cash/cheque/deposit is salary account subject to prescribed ceiling. Claim above Rs 1250/- (i.e. 15,000/- per annum) becomes taxable under Income Tax law. Paid each month by most Companies. Some expenses like cosmetic treatment/surgery, fancy implants, braces, etc. may be excluded as per policy.
Mediclaim :
Medical insurance cover to employees. Company can provide Group Insurance or each employee can take his own. More coverage means more premium payout. Coverage can be family or just the employee himself/herself at his choice/Company policy. Group Insurance taken by Company provides better coverage with lesser premium and is better for an employee/his family. Many chronic illnesses/hereditary ailments may not be covered by the policy. Mostly covers hospitalization that domiciliary treatments.
Companies can have both for different levels of employees or one of the above for all/part of employees.
Ex-Gratia vs Bonus
Ex-gratia is a payment used mostly as a filler for a purpose, sometimes even to match a CTC expectation. It is mostly a lumpsum payment at the end of the year to compensate for a committed emolument or to support a committed reward mechanism. This is taxable at the hands of the employee.
Bonus can be of many types: performance bonus, attendance/retention bonus, profit-bonus, target-bonus, contract-bonus, etc. or statutory bonus. Statutory bonus (ranging between 8.33% - 20%) is payable by law (as per Payment of Bonus Act, 1965) either upon the Company having completed 5 years of operations or achieving profits (based on allocable/available surplus and year-on set-on/set-off as per the Act). Other bonuses are as decided by the management and as per policy in the Company.
Hope this gives some basic clarifications.
Regards,
Rahul Kumar
From India, New Delhi
.....was just following the string to pop in.. Your query is answered thus..:
Medical Reimbursement vs Mediclaim :
Reimbursement provided to employees to defray medical expenses incurred by them for hospitalization and domiciliary treatment for self and family (as per Company policy). Bills are to be produced by the employee to claim the money in cash/cheque/deposit is salary account subject to prescribed ceiling. Claim above Rs 1250/- (i.e. 15,000/- per annum) becomes taxable under Income Tax law. Paid each month by most Companies. Some expenses like cosmetic treatment/surgery, fancy implants, braces, etc. may be excluded as per policy.
Mediclaim :
Medical insurance cover to employees. Company can provide Group Insurance or each employee can take his own. More coverage means more premium payout. Coverage can be family or just the employee himself/herself at his choice/Company policy. Group Insurance taken by Company provides better coverage with lesser premium and is better for an employee/his family. Many chronic illnesses/hereditary ailments may not be covered by the policy. Mostly covers hospitalization that domiciliary treatments.
Companies can have both for different levels of employees or one of the above for all/part of employees.
Ex-Gratia vs Bonus
Ex-gratia is a payment used mostly as a filler for a purpose, sometimes even to match a CTC expectation. It is mostly a lumpsum payment at the end of the year to compensate for a committed emolument or to support a committed reward mechanism. This is taxable at the hands of the employee.
Bonus can be of many types: performance bonus, attendance/retention bonus, profit-bonus, target-bonus, contract-bonus, etc. or statutory bonus. Statutory bonus (ranging between 8.33% - 20%) is payable by law (as per Payment of Bonus Act, 1965) either upon the Company having completed 5 years of operations or achieving profits (based on allocable/available surplus and year-on set-on/set-off as per the Act). Other bonuses are as decided by the management and as per policy in the Company.
Hope this gives some basic clarifications.
Regards,
Rahul Kumar
From India, New Delhi
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