Hi there! we are currently developing salary structure for our employees. i’m working in a poultry dressing plant. can anybody help us in structuring our salary?
From Philippines, Malilipot
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From Philippines, Malilipot
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Hi Elgie,
The contents of the salary breakup are as follows. You can prepare it according to your convenience. HRA would be 50% to 60% of the basic salary.
- Basic
- HRA
- CCA - 825/- (exempted from tax)
- Other Allowance
- Mobile Reimbursement
- Medical Reimbursement of 1250/month (exempted from tax)
Gross Per Month = Sum of all the above.
Gross Per Annum = 12 * Gross/Month
PF Contribution = 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Any amount exceeding this will be covered under Mediclaim or as per company policy.
Ex-Gratia/Bonus = A fixed bonus amount
Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
Annual Total Cost = AFGC + PF + ESIC
Annual total cost is also referred to as CTC.
In addition to this, Food coupons, Holiday packages, and Furnishing items are included in their CTC.
I hope this information helps clarify your queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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508The contents of the salary breakup are as follows. You can prepare it according to your convenience. HRA would be 50% to 60% of the basic salary.
- Basic
- HRA
- CCA - 825/- (exempted from tax)
- Other Allowance
- Mobile Reimbursement
- Medical Reimbursement of 1250/month (exempted from tax)
Gross Per Month = Sum of all the above.
Gross Per Annum = 12 * Gross/Month
PF Contribution = 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Any amount exceeding this will be covered under Mediclaim or as per company policy.
Ex-Gratia/Bonus = A fixed bonus amount
Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
Annual Total Cost = AFGC + PF + ESIC
Annual total cost is also referred to as CTC.
In addition to this, Food coupons, Holiday packages, and Furnishing items are included in their CTC.
I hope this information helps clarify your queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi Amit,
Can you explain to me about the ESI percentage? You have shown 4.75% in the employer part in the CTC details that you have mentioned. Additionally, one part of PF, i.e., 12%, is mentioned. I need clarification on the remaining 1.75% of ESI and 12% of PF that is not mentioned in the CTC details posted by you.
Regards,
Amith R.
From India, Bangalore
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Can you explain to me about the ESI percentage? You have shown 4.75% in the employer part in the CTC details that you have mentioned. Additionally, one part of PF, i.e., 12%, is mentioned. I need clarification on the remaining 1.75% of ESI and 12% of PF that is not mentioned in the CTC details posted by you.
Regards,
Amith R.
From India, Bangalore
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Hi Navroz,
Yes, very true. City Conveyance allowance of Rupees 825/- is exempted from Tax.
Dear Amit,
In CTC, we include only the employer's part as employees' contribution is already included in their gross salary. For instance, 1.75% of the gross salary is deducted from the employee's salary and contributed to ESI. Additionally, 12% of the Basic salary of the employee is deducted from their salary and deposited to PF. Therefore, we only include the employer's contribution in the CTC.
I hope your query regarding the same has been cleared.
Regards,
Amit Seth.
From India, Ahmadabad
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Yes, very true. City Conveyance allowance of Rupees 825/- is exempted from Tax.
Dear Amit,
In CTC, we include only the employer's part as employees' contribution is already included in their gross salary. For instance, 1.75% of the gross salary is deducted from the employee's salary and contributed to ESI. Additionally, 12% of the Basic salary of the employee is deducted from their salary and deposited to PF. Therefore, we only include the employer's contribution in the CTC.
I hope your query regarding the same has been cleared.
Regards,
Amit Seth.
From India, Ahmadabad
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Dear Amit,
Thank you very much; it is very clear. However, I would like clarification on whether the ESI and PF deductions from the gross will affect the take-home pay, i.e., the net salary. Please correct me if I am mistaken.
Regards,
Amith R.
From India, Bangalore
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Thank you very much; it is very clear. However, I would like clarification on whether the ESI and PF deductions from the gross will affect the take-home pay, i.e., the net salary. Please correct me if I am mistaken.
Regards,
Amith R.
From India, Bangalore
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Dear Amit,
If one's basic salary is 5000/- rupees and his gross salary is 9000/- rupees, then his ESI contribution would be 1.75% of 9000 and PF contribution would be 12% of 5000/-. The net salary would be after deduction of both the contribution amounts from his gross, which is 9000.
Therefore, the net salary is calculated as Gross salary - (ESI + PF contribution).
I hope this clarifies things for you.
Regards,
Amit Seth
From India, Ahmadabad
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If one's basic salary is 5000/- rupees and his gross salary is 9000/- rupees, then his ESI contribution would be 1.75% of 9000 and PF contribution would be 12% of 5000/-. The net salary would be after deduction of both the contribution amounts from his gross, which is 9000.
Therefore, the net salary is calculated as Gross salary - (ESI + PF contribution).
I hope this clarifies things for you.
Regards,
Amit Seth
From India, Ahmadabad
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