Dear All
1.I would like to know how the gratuity is being paid when a person completes his services for more than 5 years.
2. Wether the gratuity is a part of salary structure paid by employer.
what necessary forms are requried
help me out....
rgds
n.manikandan
From India, Madras
1.I would like to know how the gratuity is being paid when a person completes his services for more than 5 years.
2. Wether the gratuity is a part of salary structure paid by employer.
what necessary forms are requried
help me out....
rgds
n.manikandan
From India, Madras
Hi,
I have gone through the excel sheet but there are no deductions like PF(employee share) and TDS. NET & GROSS SALARY should be indicated after mandatory deductions. CTC is a clear picture to the company but not NET SALARY is the clear picture for an employee. Therefore its incomplete salary structure posted in the FORMATED EXCEL SHEET.
regards
khadir
From India, Chennai
288I have gone through the excel sheet but there are no deductions like PF(employee share) and TDS. NET & GROSS SALARY should be indicated after mandatory deductions. CTC is a clear picture to the company but not NET SALARY is the clear picture for an employee. Therefore its incomplete salary structure posted in the FORMATED EXCEL SHEET.
regards
khadir
From India, Chennai
I you get Rs . 30 000.00 as CTC, may calculate as follows
Basic 13200
DA 6500
HRA 4190
Conv 1000
Pf
employer
share. 2364
----------
27254
for ITpurpose, not mention in salary register Medical allowances 1250 /month
L T A 1500/month
So Total 27254+1250+1500 = 30 004.00
From India, Selam
Basic 13200
DA 6500
HRA 4190
Conv 1000
Pf
employer
share. 2364
----------
27254
for ITpurpose, not mention in salary register Medical allowances 1250 /month
L T A 1500/month
So Total 27254+1250+1500 = 30 004.00
From India, Selam
Dear Vijayanath,
You have done good efforts to draw a work-sheet to calculate the different component of Pay & Allowances from a given CTC. But it lac rationale between the percentage of the different components and it defies any logic for the same. You have taken 36.5% of CTC as Basic Salary, 50% of Basic Salary as House Rent Allowance. Conveyance Allowance, Telephone Allowance, Education Allowance and Medical Allowance are fixed amounts. One month (1/12) of Basic has been treated as Leave Travel Allowance. To it you have added 12% of Basic as Employer Share of Provident Fund contribution and 4.81% of Basic as Employer Share of Gratuity contribution. 15% of Basic has been considered as Performance Bonus. Difference of all the above and the assumed CTC has been dumped as Special Allowance. You have not considered the DA, compensatory allowances and other components, which generally are part of the monthly salary.
This is a very vague and discriminating method to calculate the different component of Pay & Allowances from a given CTC. I don't understand that it will fit in everyboy's bill. Here you have not considered the provisions of different Labour Laws for the calculations. Moreover the Policies of the employer have not been kept in mind. You have generalized the calculations for everybody. This is a non-functional worksheet and requires drastic changes to suit ones need.
From India, Chandigarh
You have done good efforts to draw a work-sheet to calculate the different component of Pay & Allowances from a given CTC. But it lac rationale between the percentage of the different components and it defies any logic for the same. You have taken 36.5% of CTC as Basic Salary, 50% of Basic Salary as House Rent Allowance. Conveyance Allowance, Telephone Allowance, Education Allowance and Medical Allowance are fixed amounts. One month (1/12) of Basic has been treated as Leave Travel Allowance. To it you have added 12% of Basic as Employer Share of Provident Fund contribution and 4.81% of Basic as Employer Share of Gratuity contribution. 15% of Basic has been considered as Performance Bonus. Difference of all the above and the assumed CTC has been dumped as Special Allowance. You have not considered the DA, compensatory allowances and other components, which generally are part of the monthly salary.
This is a very vague and discriminating method to calculate the different component of Pay & Allowances from a given CTC. I don't understand that it will fit in everyboy's bill. Here you have not considered the provisions of different Labour Laws for the calculations. Moreover the Policies of the employer have not been kept in mind. You have generalized the calculations for everybody. This is a non-functional worksheet and requires drastic changes to suit ones need.
From India, Chandigarh
Basic Salary 50% Rs. 15000/-
Dearness Allowance Rs. 2000/-
House Rent Allowance 40% of Basic + DA Rs. 6800/-
Conveyance Allowance Rs. 800/-
Washing Allowance Rs. 500/-
Children Education Allowance Rs.100/-
Special Allowance Rs. 3900/-
Gross Salary
I assume that Telephone Expenses and Local Conveyance which you are paying is for expenses incurred by the employee for official purpose. You can pay it seperately on voucher also as re-imbursement. If you do so, Salary will be Rs. 25000/- and that will effect on Bonus, LTA, Medical, etc.
From India, Bangalore
Dearness Allowance Rs. 2000/-
House Rent Allowance 40% of Basic + DA Rs. 6800/-
Conveyance Allowance Rs. 800/-
Washing Allowance Rs. 500/-
Children Education Allowance Rs.100/-
Special Allowance Rs. 3900/-
Gross Salary
I assume that Telephone Expenses and Local Conveyance which you are paying is for expenses incurred by the employee for official purpose. You can pay it seperately on voucher also as re-imbursement. If you do so, Salary will be Rs. 25000/- and that will effect on Bonus, LTA, Medical, etc.
From India, Bangalore
Hi All,
I have gone through all suggested structures but don't find any logical base. What I feel is that salary structure should be designed in a way that statutory compliance for employer should be minimum and at the same time employees income tax should be low.
Moreover take home salary would be another important thing which should be considered while deciding the basic because PF deduction get influenced with this and for tax benefit payment of different allowance should be barred and reimbursement should be given priority.
I suggest the attached structure.
From India, New Delhi
I have gone through all suggested structures but don't find any logical base. What I feel is that salary structure should be designed in a way that statutory compliance for employer should be minimum and at the same time employees income tax should be low.
Moreover take home salary would be another important thing which should be considered while deciding the basic because PF deduction get influenced with this and for tax benefit payment of different allowance should be barred and reimbursement should be given priority.
I suggest the attached structure.
From India, New Delhi
Normally, the structure will be as under.
If your company has Pay scales or not you can fix:
1. Basic: 45% to 50%
2. DA: 15% to 10%
3. HRA 25% to 30%
4. CCA 15% to 10%
Rs. 25,000/- can be fixed a sbove.
Rs. 5000/- can be shown as reimbursement of Telephone expenses.
Regards
From India, Hyderabad
If your company has Pay scales or not you can fix:
1. Basic: 45% to 50%
2. DA: 15% to 10%
3. HRA 25% to 30%
4. CCA 15% to 10%
Rs. 25,000/- can be fixed a sbove.
Rs. 5000/- can be shown as reimbursement of Telephone expenses.
Regards
From India, Hyderabad
Dear Nikash TNT and others
How you work out gratuity as 4.81%?
Is it payable monthly with salary or at the termination of service contract?
Eligibility for gratuity is 5 years of service. How it can be paid in salary to begin with?
Are the fixed allowances are really fixed for every one or you just accommodate the way you like?
You introduce special allowance to dump the difference therein to make it up to the CTC. This is very irrational.
What out of all these components qualifies for the Income Tax and what not, and why?
It all seems to be a hook and crook method of doing things. For every individual, there are different criterion and no policy/slabs are to be followed.
This can be done in a thousands of manners - the way one likes. No Policy, no slabs, no statutory limits, no criteria, no formats, no nomenclatures etc. are required to be followed. Just a free domain to do whatever you like.
I just do no appreciate it.
From India, Chandigarh
How you work out gratuity as 4.81%?
Is it payable monthly with salary or at the termination of service contract?
Eligibility for gratuity is 5 years of service. How it can be paid in salary to begin with?
Are the fixed allowances are really fixed for every one or you just accommodate the way you like?
You introduce special allowance to dump the difference therein to make it up to the CTC. This is very irrational.
What out of all these components qualifies for the Income Tax and what not, and why?
It all seems to be a hook and crook method of doing things. For every individual, there are different criterion and no policy/slabs are to be followed.
This can be done in a thousands of manners - the way one likes. No Policy, no slabs, no statutory limits, no criteria, no formats, no nomenclatures etc. are required to be followed. Just a free domain to do whatever you like.
I just do no appreciate it.
From India, Chandigarh
Hi,
Can any one help me to know how much tax benefited in my bellow allowances Monthly and Yearly?
1. House Rent Allowance
2. Conveyance Allowance
3. Education Allowance
4. Special Allowance
5. Medical Allowance
6. Leave Travel Allowance
7.Telephone Allowance
Best Regards,
Dash
From India, Mumbai
Can any one help me to know how much tax benefited in my bellow allowances Monthly and Yearly?
1. House Rent Allowance
2. Conveyance Allowance
3. Education Allowance
4. Special Allowance
5. Medical Allowance
6. Leave Travel Allowance
7.Telephone Allowance
Best Regards,
Dash
From India, Mumbai
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