Understanding Salary Components
This is my first salary in the company, and I want to know what comprises my salary. What is BASIC, HRA, ALLOWANCE, LTA, Medical, PT, and Others?
Earnings
- BASIC: 9847
- HRA: 4924
- ALLOWANCE: 4431
- LTA: 5416
- MEDICAL: 1250
- TRANSPORT SUBSIDY: 800
- TOTAL: 26668
- NET PAY: 24818
Deductions
- PT: 200
- Others: 1650
TOTAL DEDUCTIONS: 1850
Please provide a detailed explanation of any of the items mentioned as soon as possible.
From India, Bangalore
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This is my first salary in the company, and I want to know what comprises my salary. What is BASIC, HRA, ALLOWANCE, LTA, Medical, PT, and Others?
Earnings
- BASIC: 9847
- HRA: 4924
- ALLOWANCE: 4431
- LTA: 5416
- MEDICAL: 1250
- TRANSPORT SUBSIDY: 800
- TOTAL: 26668
- NET PAY: 24818
Deductions
- PT: 200
- Others: 1650
TOTAL DEDUCTIONS: 1850
Please provide a detailed explanation of any of the items mentioned as soon as possible.
From India, Bangalore
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Understanding Salary Components
I have to know about salary. Salary is the amount that is paid to an employee for their service. The government has made a few rules on salary, like the Minimum Wages Act, etc. There are a few components in salary:
Earnings:
- Basic: The minimum amount paid to an employee.
- DA (Dearness Allowance): An allowance paid to the employee along with the basic salary.
- HRA (House Rent Allowance): An allowance given for house rent.
- Medical Allowance
- LTA (Leave Travel Allowance)
- Conveyance
- Employer PF: An indirect monthly payment to the employee credited to their PF account for future benefits (not a part of the salary as per the PF Act).
- CEA (Children Educational Allowance)
These are a few things that are included in salary earnings.
Deductions:
- PF (Provident Fund): 12% on the basic salary
- PT (Professional Tax as per state)
- ESI (Employee State Insurance)
Hope this will help you.
From India, Namakkal
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7I have to know about salary. Salary is the amount that is paid to an employee for their service. The government has made a few rules on salary, like the Minimum Wages Act, etc. There are a few components in salary:
Earnings:
- Basic: The minimum amount paid to an employee.
- DA (Dearness Allowance): An allowance paid to the employee along with the basic salary.
- HRA (House Rent Allowance): An allowance given for house rent.
- Medical Allowance
- LTA (Leave Travel Allowance)
- Conveyance
- Employer PF: An indirect monthly payment to the employee credited to their PF account for future benefits (not a part of the salary as per the PF Act).
- CEA (Children Educational Allowance)
These are a few things that are included in salary earnings.
Deductions:
- PF (Provident Fund): 12% on the basic salary
- PT (Professional Tax as per state)
- ESI (Employee State Insurance)
Hope this will help you.
From India, Namakkal
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Nowadays, all employees working in any sector are receiving negotiated salaries in monthly or annual CTC. CTC stands for Cost to Company. A salary may consist of various components:
- **Basic Salary:** This is an amount meant to fulfill your basic needs apart from housing for you and your family.
- **HRA:** This denotes House Rent Allowance, which is self-explanatory.
- **Conveyance:** This is an amount allocated for your conveyance expenses.
- **Transport Allowance:** This is an amount designated for adjusting transport expenses related to commuting for your duties.
- **PF:** Employees Provident Fund, governed by the applicable labor act, is 12% of your basic salary, applicable only on ₹6500, as both your and the employer's share. It is a deduction.
There are many more components in a salary package, and these can vary depending on the industry or organization.
Thank you,
Regards,
Ajay Pal Singh
Human Resource Professional
From India, Delhi
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- **Basic Salary:** This is an amount meant to fulfill your basic needs apart from housing for you and your family.
- **HRA:** This denotes House Rent Allowance, which is self-explanatory.
- **Conveyance:** This is an amount allocated for your conveyance expenses.
- **Transport Allowance:** This is an amount designated for adjusting transport expenses related to commuting for your duties.
- **PF:** Employees Provident Fund, governed by the applicable labor act, is 12% of your basic salary, applicable only on ₹6500, as both your and the employer's share. It is a deduction.
There are many more components in a salary package, and these can vary depending on the industry or organization.
Thank you,
Regards,
Ajay Pal Singh
Human Resource Professional
From India, Delhi
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Dear Pavitra,
Here is a breakdown of your salary components:
Your Basic Salary: 9847/-
Your House Rent Allowance: 4924/- (50% of basic salary)
Your Allowance: 4431/-
Medical Allowance: 1250/- (fixed amount)
LTA (Leave Travel Allowance): 4431/-
Now, moving on to the deduction part:
PF (Provident Fund): 12% on the basic salary
PT (Professional Tax as per state): 200/-
Regards,
Meenu
From India, New Delhi
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Here is a breakdown of your salary components:
Your Basic Salary: 9847/-
Your House Rent Allowance: 4924/- (50% of basic salary)
Your Allowance: 4431/-
Medical Allowance: 1250/- (fixed amount)
LTA (Leave Travel Allowance): 4431/-
Now, moving on to the deduction part:
PF (Provident Fund): 12% on the basic salary
PT (Professional Tax as per state): 200/-
Regards,
Meenu
From India, New Delhi
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CTC SALARY SLIP FORM.xls