Anybody can help me by sharing the payroll sheet for Delhi City under the Shop & Establishment Act.
Salary Breakup - CTC
I need the updated minimum wage with all allowances that an employer can give to the employees. Attaching the minimum wage sheet. I am a little bit confused about making the salary breakup.
From India, Faridabad
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Salary Breakup - CTC
I need the updated minimum wage with all allowances that an employer can give to the employees. Attaching the minimum wage sheet. I am a little bit confused about making the salary breakup.
From India, Faridabad
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Sure, I can definitely help you with the salary breakup under the Shop and Establishment Act for Delhi city.
Salary breakup generally consists of these components:
1. Basic Salary: It should be around 40-50% of the CTC. The Minimum Wage for Delhi as per your attached sheet will be the base for this.
2. House Rent Allowance (HRA): This is usually 40-50% of the basic salary in non-metro cities and 50% in metro cities.
3. Conveyance Allowance: This is given to employees to commute between home and workplace. The maximum exemption limit is INR 1600 per month.
4. Medical Allowance: This is for the medical expenses of the employee. It can be up to INR 1250 per month.
5. Leave Travel Allowance (LTA): This is for the travel expenses when the employee is on leave. It's generally a part of CTC and varies from company to company.
6. Bonus: This is usually 8.33% of basic or INR 7000, whichever is lower. However, it can vary as per company policy.
7. Special Allowance: Any remaining part of the CTC can be given under this head.
Remember to deduct Employee Provident Fund (EPF) which is 12% of Basic+DA from the employee's CTC.
The employer also contributes an equal amount to the EPF. However, this is not deducted from the CTC but is an additional cost to the company.
Here's a simple step-by-step guide to create the salary breakup:
1. Start with the total CTC.
2. Deduct the employer's EPF contribution from the CTC.
3. Calculate the Basic Salary, it should be around 40-50% of the CTC.
4. Calculate the allowances (HRA, Conveyance, Medical, LTA, Bonus) based on the percentages mentioned above.
5. Any remaining amount from the CTC can be given under Special Allowance.
6. Deduct the EPF (12% of Basic+DA) from the employee's CTC.
Remember, the laws and rules for salary breakup can vary based on the location and company policy. Always refer to the most recent labor laws and policies for the most accurate information.
From India, Gurugram
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44Salary breakup generally consists of these components:
1. Basic Salary: It should be around 40-50% of the CTC. The Minimum Wage for Delhi as per your attached sheet will be the base for this.
2. House Rent Allowance (HRA): This is usually 40-50% of the basic salary in non-metro cities and 50% in metro cities.
3. Conveyance Allowance: This is given to employees to commute between home and workplace. The maximum exemption limit is INR 1600 per month.
4. Medical Allowance: This is for the medical expenses of the employee. It can be up to INR 1250 per month.
5. Leave Travel Allowance (LTA): This is for the travel expenses when the employee is on leave. It's generally a part of CTC and varies from company to company.
6. Bonus: This is usually 8.33% of basic or INR 7000, whichever is lower. However, it can vary as per company policy.
7. Special Allowance: Any remaining part of the CTC can be given under this head.
Remember to deduct Employee Provident Fund (EPF) which is 12% of Basic+DA from the employee's CTC.
The employer also contributes an equal amount to the EPF. However, this is not deducted from the CTC but is an additional cost to the company.
Here's a simple step-by-step guide to create the salary breakup:
1. Start with the total CTC.
2. Deduct the employer's EPF contribution from the CTC.
3. Calculate the Basic Salary, it should be around 40-50% of the CTC.
4. Calculate the allowances (HRA, Conveyance, Medical, LTA, Bonus) based on the percentages mentioned above.
5. Any remaining amount from the CTC can be given under Special Allowance.
6. Deduct the EPF (12% of Basic+DA) from the employee's CTC.
Remember, the laws and rules for salary breakup can vary based on the location and company policy. Always refer to the most recent labor laws and policies for the most accurate information.
From India, Gurugram
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Brief Kerla Shop & Establishment Act.pdf