Dear Friends,
Kindly help me out with Implementation of "C&B" from the scratch, and also Compensation benchmarking. If anyone has PPT's or articles regarding the same, kindly do share.
Looking forward for your valuable inputs.
Regards,
Vinod
From India, Madras
1Kindly help me out with Implementation of "C&B" from the scratch, and also Compensation benchmarking. If anyone has PPT's or articles regarding the same, kindly do share.
Looking forward for your valuable inputs.
Regards,
Vinod
From India, Madras
Hi,
Please see the attachment for the compensation part and you may design the salary packages keeping the things below in your consideration.
The contents of the salary break up may be as below; you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA 40 -60% is exempted from Taxes, depends on class of city
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is 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 an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost (AGFC)= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Amount Reimbursement is also a part of taxable salary but they are exempted from taxes up to a certain level.
Non Taxable components of salary:
1. Education Allowance:
Exempted for upto 2 school going childrens, Rs 100 per month for each child. No FBT to be paid by the Employer
2. Medical Allowance:
Maximum limit : 15000 per year / 1250 per month . Provided submit bills
FBT to be paid by the Employer
3. Lunch Allowance:
Rs 50 for each working day: 22*50= 1100(max limit)
FBT to be paid by the Employer
4. LTA
To be claimed twice in a block of 4 yrs, Once in 2 yrs. 2 journeys in 4ys block
Eligible members (Self,spouse,2 kids, dependent parents)
Eligible mode of transport:
Air fare
1st AC tickets subject to direct journey
Road: calculated as per 1st AC¡¦s fare for the to & fro destination
Provided submit bills
Rest amt left after submitting the bill wud be added to employees income and hence becomes txable.
Blocks for LTA: Calculated As Calendar Year
1) 1986 to 1989
2) 1990 to 1993
3) 1994 to 1997
4) 1998 to 2001
5) 2002 to 2005
6) 2006 to 2009
Conveyance:
Exemption limit upto 800 pm
If co provides personal vehicle than taxable, if not than non taxable
HRA:
If Employee Is Paying Rent Than Non Taxable
Calculation:
Rent ¡V 10% of basic
50 % of basic
60% of basic (as per type of city)
apart fom the eligible amt rest amt wud be taxable.
Housing Loans:
a) Principle Amt:
Exemption of Rs 1 lac under 80 C(including LIC,PF etc)
b) Interest:
exemption of 1.5 lacs if self occupied
If on rent : exemption of 2.5 lacs ¡V provided show rent receipts.
c) Loan for repair:
Exemption Upto 30,000. ¡V No Claim Under 80 C
FBT Calculation:
FBT is paid by the employer, Non taxable income of the employee (income wic is exempted except edu all is FBT for the Employer) Taxable Income of employee no FBT to employer.
(x) ¡V total amt
on 20% of (x) 33.99% to be calculated as FBT
eg
for 2000
20% = 400 RS
33.99% OF 400 = 33.99 is FBT.
FBT paid on following Reimbursements
Telephone Reimb
Petrol
Vehicle maintainence
Keep in touch for any assistance.
Anurag
From India, Jaipur
Please see the attachment for the compensation part and you may design the salary packages keeping the things below in your consideration.
The contents of the salary break up may be as below; you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA 40 -60% is exempted from Taxes, depends on class of city
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is 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 an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost (AGFC)= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Amount Reimbursement is also a part of taxable salary but they are exempted from taxes up to a certain level.
Non Taxable components of salary:
1. Education Allowance:
Exempted for upto 2 school going childrens, Rs 100 per month for each child. No FBT to be paid by the Employer
2. Medical Allowance:
Maximum limit : 15000 per year / 1250 per month . Provided submit bills
FBT to be paid by the Employer
3. Lunch Allowance:
Rs 50 for each working day: 22*50= 1100(max limit)
FBT to be paid by the Employer
4. LTA
To be claimed twice in a block of 4 yrs, Once in 2 yrs. 2 journeys in 4ys block
Eligible members (Self,spouse,2 kids, dependent parents)
Eligible mode of transport:
Air fare
1st AC tickets subject to direct journey
Road: calculated as per 1st AC¡¦s fare for the to & fro destination
Provided submit bills
Rest amt left after submitting the bill wud be added to employees income and hence becomes txable.
Blocks for LTA: Calculated As Calendar Year
1) 1986 to 1989
2) 1990 to 1993
3) 1994 to 1997
4) 1998 to 2001
5) 2002 to 2005
6) 2006 to 2009
Conveyance:
Exemption limit upto 800 pm
If co provides personal vehicle than taxable, if not than non taxable
HRA:
If Employee Is Paying Rent Than Non Taxable
Calculation:
Rent ¡V 10% of basic
50 % of basic
60% of basic (as per type of city)
apart fom the eligible amt rest amt wud be taxable.
Housing Loans:
a) Principle Amt:
Exemption of Rs 1 lac under 80 C(including LIC,PF etc)
b) Interest:
exemption of 1.5 lacs if self occupied
If on rent : exemption of 2.5 lacs ¡V provided show rent receipts.
c) Loan for repair:
Exemption Upto 30,000. ¡V No Claim Under 80 C
FBT Calculation:
FBT is paid by the employer, Non taxable income of the employee (income wic is exempted except edu all is FBT for the Employer) Taxable Income of employee no FBT to employer.
(x) ¡V total amt
on 20% of (x) 33.99% to be calculated as FBT
eg
for 2000
20% = 400 RS
33.99% OF 400 = 33.99 is FBT.
FBT paid on following Reimbursements
Telephone Reimb
Petrol
Vehicle maintainence
Keep in touch for any assistance.
Anurag
From India, Jaipur
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Published_draft _rules_on Employees_ compensation 3.6.2020.pdf
Compensation Benchmarking Survey.doc