Hi, I am working with a small company. The company has 20 employees, and the salary ranges from 10k to 30k per month. I want to create a perfect salary structure based on the current IT slab for the employees so that I can provide them with a salary slip. If the gross salary is 30k, how should I prepare the salary structure? What should be the percentage of basic salary, HRA, etc.?
This is my first time preparing a salary structure, so any help from you all would be greatly appreciated. If we include medical allowances in the salary slip, is it necessary to partner with a medical or insurance company for the same?
Thanks,
Jayu
From India, Pune
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This is my first time preparing a salary structure, so any help from you all would be greatly appreciated. If we include medical allowances in the salary slip, is it necessary to partner with a medical or insurance company for the same?
Thanks,
Jayu
From India, Pune
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Dear Jayashree,
The salary structure is as follows:
CTC = Fixed Pay + Variable Pay
Basic = 40% of Fixed CTC
Choice pay or (Tax saving options) = 60% of Fixed CTC
Take-home = Gross - Deductions
Gross = Basic + HRA + DA + CA + Medical, etc.
Deductions = PF, PT
Medical can also be used as a tax-saving option. Usually, it is ₹1250 monthly, i.e., ₹15,000 annually. The employee can submit bills for the same and claim monthly. There is no need for a tie-up for this purpose.
Dear Seniors, please correct if the data is incorrect.
Thank you.
From India, Mumbai
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2The salary structure is as follows:
CTC = Fixed Pay + Variable Pay
Basic = 40% of Fixed CTC
Choice pay or (Tax saving options) = 60% of Fixed CTC
Take-home = Gross - Deductions
Gross = Basic + HRA + DA + CA + Medical, etc.
Deductions = PF, PT
Medical can also be used as a tax-saving option. Usually, it is ₹1250 monthly, i.e., ₹15,000 annually. The employee can submit bills for the same and claim monthly. There is no need for a tie-up for this purpose.
Dear Seniors, please correct if the data is incorrect.
Thank you.
From India, Mumbai
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Tax Saving on Medical Reibursement under section 17(2) .pdf
Creating a Competitive Salary Structure.doc
Salary Structure.zip