Hi, I need to design a salary breakup of 29.40 lacs per annum take home and need to make it employee and employer friendly. Please help....
From India, Mumbai
Acknowledge(0)
Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
Salary breakup for 29.40 will be.....
Breakup of salary:
Basic: 147000 (245000*60%)
HRA: 58800 (basic*40%)
Other allowance: 39200 (difference amount)
Total deductions:
PF: 780
PT: 200
TDS: 30% of annual income
Earned salary - total deductions = [salary payable]
From India, Hyderabad
Acknowledge(0)Amend(0)
1Salary breakup for 29.40 will be.....
Breakup of salary:
Basic: 147000 (245000*60%)
HRA: 58800 (basic*40%)
Other allowance: 39200 (difference amount)
Total deductions:
PF: 780
PT: 200
TDS: 30% of annual income
Earned salary - total deductions = [salary payable]
From India, Hyderabad
Acknowledge(0)Amend(0)
as per some company norms they take basic 6500 as basic salary slab 6500 for that pf is 780 some times it may differs from company to company
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi,
For such a big amount, CTC has to be structured in such a way that the employee benefits maximally from tax implications.
I would suggest you follow the below structure:
1. Basic - 40% of CTC
2. HRA - 50% of Basic in case of metros or 40% of basic for non-metros. Rent receipts can be used for tax rebate.
3. Conveyance - Rs. 9600/- p.a. (Alternatively, Fuel & Maintenance charges up to 20,000/- p.m. can be claimed as tax-free if he/she owns a 4-wheeler or 5000/- p.m in the case of a 2-wheeler). If Fuel & Maintenance charges are availed, the conveyance allowance cannot be availed.
4. Medical Assistance - Rs. 1250/- p.m (subject to the production of proof)
5. Food coupons - Rs. 2700/- p.m tax-free
6. Gift Vouchers - Rs. 5000/- p.a. tax-free
7. Children's Education Allowance - Rs. 100/- p.m. per child (max 2 children) tax-free
8. Club Allowance - up to 2L p.a. tax-free (Health clubs/holiday clubs with ID card and payment receipt can be claimed for tax rebates)
9. LTA - up to 2 basics (tax benefit twice in a block of 4 yrs, subject to production of Air/Train tickets for self and dependents)
Pon
From India, Lucknow
Acknowledge(0)Amend(0)
For such a big amount, CTC has to be structured in such a way that the employee benefits maximally from tax implications.
I would suggest you follow the below structure:
1. Basic - 40% of CTC
2. HRA - 50% of Basic in case of metros or 40% of basic for non-metros. Rent receipts can be used for tax rebate.
3. Conveyance - Rs. 9600/- p.a. (Alternatively, Fuel & Maintenance charges up to 20,000/- p.m. can be claimed as tax-free if he/she owns a 4-wheeler or 5000/- p.m in the case of a 2-wheeler). If Fuel & Maintenance charges are availed, the conveyance allowance cannot be availed.
4. Medical Assistance - Rs. 1250/- p.m (subject to the production of proof)
5. Food coupons - Rs. 2700/- p.m tax-free
6. Gift Vouchers - Rs. 5000/- p.a. tax-free
7. Children's Education Allowance - Rs. 100/- p.m. per child (max 2 children) tax-free
8. Club Allowance - up to 2L p.a. tax-free (Health clubs/holiday clubs with ID card and payment receipt can be claimed for tax rebates)
9. LTA - up to 2 basics (tax benefit twice in a block of 4 yrs, subject to production of Air/Train tickets for self and dependents)
Pon
From India, Lucknow
Acknowledge(0)Amend(0)
Dear Miss. Shanti D. Please find excell sheet for salary break-up. Most of the companies are using this type of salary break up only. It may usefull for u & other members too.
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
dear sir, i want know about pf deduction that does pf conntribution amount taxable amount or not and how much can withdraw pf amount one time in % warm regards, sanju singh
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear respected sir,
I had taken the first manpower contract in a company. In our state, the minimum wage for unskilled labor is 3850 (basic + dearness amount). I want to know what the minimum basic salary for unskilled labor is and also the value on which I have to calculate ESIC & PF.
Thanks & Regards,
Pawan Kumar Dhiman
From India, Dehra Dun
Acknowledge(0)Amend(0)
I had taken the first manpower contract in a company. In our state, the minimum wage for unskilled labor is 3850 (basic + dearness amount). I want to know what the minimum basic salary for unskilled labor is and also the value on which I have to calculate ESIC & PF.
Thanks & Regards,
Pawan Kumar Dhiman
From India, Dehra Dun
Acknowledge(0)Amend(0)
Hi Mr. Pon 1965,
I am a bit confused about your post. Could you please clarify the following for me with reference to the Income Tax Act and decided case laws?
a) Fuel & Maintenance charges up to ₹20,000/- per month can be claimed as tax-free if he/she owns a four-wheeler or ₹5,000/- per month in the case of a two-wheeler.
b) Food coupons - ₹2,700/- per month tax-free.
c) Club Allowance - up to ₹2 lakh per annum tax-free (Health clubs/holiday clubs with ID card and payment receipt can be claimed for tax rebates).
Thanks and Regards, Divakar
From India, Bangalore
Acknowledge(0)Amend(0)
I am a bit confused about your post. Could you please clarify the following for me with reference to the Income Tax Act and decided case laws?
a) Fuel & Maintenance charges up to ₹20,000/- per month can be claimed as tax-free if he/she owns a four-wheeler or ₹5,000/- per month in the case of a two-wheeler.
b) Food coupons - ₹2,700/- per month tax-free.
c) Club Allowance - up to ₹2 lakh per annum tax-free (Health clubs/holiday clubs with ID card and payment receipt can be claimed for tax rebates).
Thanks and Regards, Divakar
From India, Bangalore
Acknowledge(0)Amend(0)
Hi,
It depends on the company. For example, if we have a salary of Rs. 245,000, our gross pay will be calculated as follows:
- PF: 780
- Bonus: 700
- Medical: 474
- Leave without pay: 10
Total deductions amount to 1,964. Subtracting this from the gross pay, we get 243,036.
Now, breaking down the components of the salary:
- Basic: 35% - 85,063
- HRA: 20% - 48,607
- Conveyance: 36,455
- Medical allowance: 24,304
- Special allowance: 24,304
- City compensatory allowance: 12,152
- City employment duty: 12,152
These figures illustrate the breakdown of the salary components based on the percentages and allowances specified.
Thank you.
From India, Faridabad
Acknowledge(0)Amend(0)
It depends on the company. For example, if we have a salary of Rs. 245,000, our gross pay will be calculated as follows:
- PF: 780
- Bonus: 700
- Medical: 474
- Leave without pay: 10
Total deductions amount to 1,964. Subtracting this from the gross pay, we get 243,036.
Now, breaking down the components of the salary:
- Basic: 35% - 85,063
- HRA: 20% - 48,607
- Conveyance: 36,455
- Medical allowance: 24,304
- Special allowance: 24,304
- City compensatory allowance: 12,152
- City employment duty: 12,152
These figures illustrate the breakdown of the salary components based on the percentages and allowances specified.
Thank you.
From India, Faridabad
Acknowledge(0)Amend(0)
Dear Shanti,
Please find below the Salary Break-up:
Take Home/Annum: 2940000 Take Home/Month: 245000
Basic: 1470000 Monthly: 122500
HRA: 735000 Monthly: 61250
Telephone: 9600 Monthly: 800
Medical: 15000 Monthly: 1250
Other Allowance: 719760 Monthly: 59980
Gross Salary: 2949360 Monthly: 245780
PF: 9360 Monthly: 780
Take Home/Month: 2940000 Monthly: 245000
Thanks and Regards,
Abhinav Chandra
Plant HR Head
IMT Manesar
Gurgaon, Haryana
From India, Bangalore
Acknowledge(0)Amend(0)
Please find below the Salary Break-up:
Take Home/Annum: 2940000 Take Home/Month: 245000
Basic: 1470000 Monthly: 122500
HRA: 735000 Monthly: 61250
Telephone: 9600 Monthly: 800
Medical: 15000 Monthly: 1250
Other Allowance: 719760 Monthly: 59980
Gross Salary: 2949360 Monthly: 245780
PF: 9360 Monthly: 780
Take Home/Month: 2940000 Monthly: 245000
Thanks and Regards,
Abhinav Chandra
Plant HR Head
IMT Manesar
Gurgaon, Haryana
From India, Bangalore
Acknowledge(0)Amend(0)
what is the percentage of basic salary for the people who r working in hotel industry , And what is their salary breakup
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Dear All,
I am working for companies X1 and X2, both of which are sister concerned companies.
My salary breakup is as follows:
From Company X1:
Basic: 41000
Conveyance: 3500
HRA: 12500
PPF: 4100
Medical Allowance: 3500
LTA/Driver Allowance: 2900
Total: 67500
Deductions: 61500
Net Pay: 61350
From Company X2:
Salary: 47500
Deductions: 14750
Net Pay: 32750
Kindly provide me with a salary breakdown that benefits me (to save tax) and my employer.
From India, Hyderabad
Acknowledge(0)Amend(0)
I am working for companies X1 and X2, both of which are sister concerned companies.
My salary breakup is as follows:
From Company X1:
Basic: 41000
Conveyance: 3500
HRA: 12500
PPF: 4100
Medical Allowance: 3500
LTA/Driver Allowance: 2900
Total: 67500
Deductions: 61500
Net Pay: 61350
From Company X2:
Salary: 47500
Deductions: 14750
Net Pay: 32750
Kindly provide me with a salary breakdown that benefits me (to save tax) and my employer.
From India, Hyderabad
Acknowledge(0)Amend(0)
Presuming that your annual income is 13.80 L (67500+47500)x12, find enclosed the suggested pay structure. You can try more options at the provided weblink.
Just remember the following things:
- Employer's Contribution to PF is exempt from Income Tax.
- Your contribution to PF is deductible u/s 80C (max 1 lac).
- Gratuity is taxable in the year of receipt and that also with certain exemptions, whereas the employer shall get the expense deductible in the current year only.
- Medical reimbursement is exempt up to 15,000 p.a.
- LTA is exempt up to 15,000 p.a.
- Conveyance allowance is exempt up to 9,600 p.a.
- HRA is also exempt depending upon the actual rent paid by you.
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
Just remember the following things:
- Employer's Contribution to PF is exempt from Income Tax.
- Your contribution to PF is deductible u/s 80C (max 1 lac).
- Gratuity is taxable in the year of receipt and that also with certain exemptions, whereas the employer shall get the expense deductible in the current year only.
- Medical reimbursement is exempt up to 15,000 p.a.
- LTA is exempt up to 15,000 p.a.
- Conveyance allowance is exempt up to 9,600 p.a.
- HRA is also exempt depending upon the actual rent paid by you.
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
Dear BMandBM,
Most of the tax-saving allowances work best for salaries within 2-4 lakhs per annum. At a higher salary, only HRA saves some money. If you live in a metro city, make it 50% of Basic; otherwise, 40% of Basic. A higher contribution to PF (both employer and employee) also saves taxes as it is fully exempt. Children's education allowance (max 2400 per annum for 2 children), hostel allowance (max 7200 per annum for 2 children), transport allowance (max 9600 per annum), medical reimbursement (max 15000 per annum), LTA (actual spent) can also save some money.
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
Most of the tax-saving allowances work best for salaries within 2-4 lakhs per annum. At a higher salary, only HRA saves some money. If you live in a metro city, make it 50% of Basic; otherwise, 40% of Basic. A higher contribution to PF (both employer and employee) also saves taxes as it is fully exempt. Children's education allowance (max 2400 per annum for 2 children), hostel allowance (max 7200 per annum for 2 children), transport allowance (max 9600 per annum), medical reimbursement (max 15000 per annum), LTA (actual spent) can also save some money.
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
Dear Rajiv,
People talk about food/gift vouchers/uniform/driver/vehicle/petrol allowance. If these allowances are introduced, can I save some tax? If yes, please provide the details on how it can be done.
Regards,
BMandBM
From India, Hyderabad
Acknowledge(0)Amend(0)
People talk about food/gift vouchers/uniform/driver/vehicle/petrol allowance. If these allowances are introduced, can I save some tax? If yes, please provide the details on how it can be done.
Regards,
BMandBM
From India, Hyderabad
Acknowledge(0)Amend(0)
User input: BMandBM
See, anything given in the form of a fixed allowance is taxable besides the ones I mentioned in my earlier post.
Food vouchers
The rule (Rule 3(7)(iii)) states that the value of free food and non-alcoholic beverages or meal vouchers provided by the employer is exempt from income tax to the extent of Rs. 50 per meal. Please note that the tax exemption is to be calculated on a per-meal basis and not on a per-month basis. Many organizations provide meal vouchers to the extent of Rs. 3,000 per month and do not calculate any tax on the same. Some payroll managers argue that Rs. 50 per meal translates into Rs. 100 per day (assuming two meals per day) and finally into Rs. 3,000 per month (for 30 days) and hence meal vouchers are exempt to the extent of Rs. 3,000 per month.
In addition, the meal vouchers issued to employees should be non-transferable and used only in eating joints. Since tax exemption is restricted to Rs. 50 per meal, payroll managers would do well to issue meal vouchers only in Rs. 50 (or less) denomination. The issuance of meal vouchers of a higher denomination (say, Rs. 100) may attract tax.
At the end of each month, payroll managers should make note of loss of pay and other leave days (Casual Leave, etc.) of employees and correspondingly calculate the perquisite value for the meal vouchers issued.
Gift Vouchers
Regarding Gift vouchers, as per my knowledge, the same is exempt for gifts below Rs. 5000/- p.a.
Uniform allowance and Professional Journal allowance are exempt from tax to the extent the expense has been incurred [sec 10(14) read with rule 2BB].
Driver/Vehicle/petrol, etc., if given as an allowance, will be fully taxable. However, if the company gives a chauffeur-driven car, the same is taxable/exempt as perquisites u/s 17 up to certain limits depending upon the car cubic capacity.
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
See, anything given in the form of a fixed allowance is taxable besides the ones I mentioned in my earlier post.
Food vouchers
The rule (Rule 3(7)(iii)) states that the value of free food and non-alcoholic beverages or meal vouchers provided by the employer is exempt from income tax to the extent of Rs. 50 per meal. Please note that the tax exemption is to be calculated on a per-meal basis and not on a per-month basis. Many organizations provide meal vouchers to the extent of Rs. 3,000 per month and do not calculate any tax on the same. Some payroll managers argue that Rs. 50 per meal translates into Rs. 100 per day (assuming two meals per day) and finally into Rs. 3,000 per month (for 30 days) and hence meal vouchers are exempt to the extent of Rs. 3,000 per month.
In addition, the meal vouchers issued to employees should be non-transferable and used only in eating joints. Since tax exemption is restricted to Rs. 50 per meal, payroll managers would do well to issue meal vouchers only in Rs. 50 (or less) denomination. The issuance of meal vouchers of a higher denomination (say, Rs. 100) may attract tax.
At the end of each month, payroll managers should make note of loss of pay and other leave days (Casual Leave, etc.) of employees and correspondingly calculate the perquisite value for the meal vouchers issued.
Gift Vouchers
Regarding Gift vouchers, as per my knowledge, the same is exempt for gifts below Rs. 5000/- p.a.
Uniform allowance and Professional Journal allowance are exempt from tax to the extent the expense has been incurred [sec 10(14) read with rule 2BB].
Driver/Vehicle/petrol, etc., if given as an allowance, will be fully taxable. However, if the company gives a chauffeur-driven car, the same is taxable/exempt as perquisites u/s 17 up to certain limits depending upon the car cubic capacity.
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
Dear Friends,
I have a query on salary break-up. Though Basic and DA accompany in Basic, and then comes HRA, CA, MA, other allowances. But I would like to know the bifurcation of Basic and DA. How will we bifurcate and enter the individual break-up in payroll software? I will appreciate if somebody could brief me with an example.
Thanks,
Deepa
From India, Delhi
Acknowledge(0)Amend(0)
I have a query on salary break-up. Though Basic and DA accompany in Basic, and then comes HRA, CA, MA, other allowances. But I would like to know the bifurcation of Basic and DA. How will we bifurcate and enter the individual break-up in payroll software? I will appreciate if somebody could brief me with an example.
Thanks,
Deepa
From India, Delhi
Acknowledge(0)Amend(0)
Dear All,
I am a student. Can you please help me understand the Salary Breakup?
1. How do I calculate the basic salary starting from 15k and above?
2. HRA
3. Conveyance
4. PF
5. Medical
According to the law, salaries up to 15k or less come under the ESIC Act. How do I calculate ESIC for the same?
I am really hoping someone can provide me with a complete guide/tutorial on this.
Thanks.
From United Kingdom
Acknowledge(0)Amend(0)
I am a student. Can you please help me understand the Salary Breakup?
1. How do I calculate the basic salary starting from 15k and above?
2. HRA
3. Conveyance
4. PF
5. Medical
According to the law, salaries up to 15k or less come under the ESIC Act. How do I calculate ESIC for the same?
I am really hoping someone can provide me with a complete guide/tutorial on this.
Thanks.
From United Kingdom
Acknowledge(0)Amend(0)
Attached are salary breakups for salaries of 1.80 lacs and 2.20 lacs per annum. The former comes under ESI, and the latter is out of its purview. You can explore more options at the provided weblink.
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
Dear All, I want to make it clear that is ESI and PF Contribution of Employer is a part of CTC of an employee. How to calculate bonus in CTC. Please respond soon.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
In my opinion, the employer's share of contribution to ESI and PF should be part of CTC. The bonus is 8.33% of Basic. You can restrict the Basic to ₹3500 per month as per the current provisions of the Payment of Bonus Act.
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
Rajiv
From India, Gurgaon
Acknowledge(0)Amend(0)
Yes, it is very much a part of CTC. The CTC of 1.80 lacs comprises both PF and ESI (Employer's share only).
Particulars Annual
Basic - 90675
HRA - 36270
CA - 9600
MR - 15000
SA - 0
LTA - 4534
Sub-Total - 156079
Statutory Contributions:
Bonus (Annual) - 3500
Prov. for Gratuity (Annual) - 4359
PF Employer Cont - 9360
ESI - 6702
Sub-Total - 23921
Grand Total - 180000
Deductions:
Gross PF Contribution - 20241
Gross ESI Contribution - 9170
Professional Tax Deposit - 0
Sub-Total - 29411
Net Payable - 150589
From India, Gurgaon
Acknowledge(0)Amend(0)
Particulars Annual
Basic - 90675
HRA - 36270
CA - 9600
MR - 15000
SA - 0
LTA - 4534
Sub-Total - 156079
Statutory Contributions:
Bonus (Annual) - 3500
Prov. for Gratuity (Annual) - 4359
PF Employer Cont - 9360
ESI - 6702
Sub-Total - 23921
Grand Total - 180000
Deductions:
Gross PF Contribution - 20241
Gross ESI Contribution - 9170
Professional Tax Deposit - 0
Sub-Total - 29411
Net Payable - 150589
From India, Gurgaon
Acknowledge(0)Amend(0)
Please provide me with a scheme for fuel and maintenance charges for employees and how they are taxed. Also, outline a scheme for the housing provided in the company colony and how an employee can benefit from lower taxes.
Thank you.
From India, New Delhi
Acknowledge(0)Amend(0)
Thank you.
From India, New Delhi
Acknowledge(0)Amend(0)
Hi HR Guys I appriciate all your arguments Normally every company management his own principal to give the salary brakup sheet This is one method to give the breakup of employee Suresh VVN
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Rahul Please see this attachment for PF & ESI Still you are any clarification please post the comment. Suresh VVN
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Rajiv,
Thank you for sharing this knowledge with us. I don't know how many would agree, but Statutory laws and Payroll Management can be a bit tricky at times unless you understand them thoroughly. Thanks, anyway, for sharing.
Thank you!!!
From India, Madras
Acknowledge(0)Amend(0)
Thank you for sharing this knowledge with us. I don't know how many would agree, but Statutory laws and Payroll Management can be a bit tricky at times unless you understand them thoroughly. Thanks, anyway, for sharing.
Thank you!!!
From India, Madras
Acknowledge(0)Amend(0)
Dear Frnds, I have a query . pls help me. If the monthly CTC is 10976/-, then what would be annual CTC of that person. Pls respond soon. Regards, Deepa
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear Santhi,
Normally, CTC is fixed by the management. Once the CTC is set as per the HR policy, we need to process it.
1. If your company has its own policy to design the salary breakup, duly signed by the authorized person (Vice President HR/Managing Director/Chairman), we will plan what percentage we need to allocate to the basic salary. Once the basic salary is determined, we will allocate the remaining amounts as per regulations such as the Income Tax Act, PF Act, and other applicable laws.
If you want the breakup sheet, I can provide it to you after receiving the above information.
Thanks & Regards,
V.V.N. Suresh
From India, Hyderabad
Acknowledge(0)Amend(0)
Normally, CTC is fixed by the management. Once the CTC is set as per the HR policy, we need to process it.
1. If your company has its own policy to design the salary breakup, duly signed by the authorized person (Vice President HR/Managing Director/Chairman), we will plan what percentage we need to allocate to the basic salary. Once the basic salary is determined, we will allocate the remaining amounts as per regulations such as the Income Tax Act, PF Act, and other applicable laws.
If you want the breakup sheet, I can provide it to you after receiving the above information.
Thanks & Regards,
V.V.N. Suresh
From India, Hyderabad
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Typical salary breakup.jpg
Salary breakup format.xls
Employee Benefits.doc