Dear All,
Can any one guide me on
Normally industry standard says % of Basic pay shold be 40% -45% of gross salary, but some companies aslo take 60%-70% of GS ( though I know there is no such fixed rule as per law on Basic pay)
1.My question is if we take less percentage of basic what will be the benefit to employee?
1. Benefit to employer - less PF contribution to be made.
2. Benefit to Employee - ?
Is HRA linked to basic pay like lower the basic - more deduction employee can get on HRA...
2.What is HRA % - I know it is 42% - 45%- I am correct
For Eg: if gross salary is 10000
Basic (40% of Gross) : 4000
HRA ( 42% of Basic) : 1680
Please guide me on the percentages...as I am designing the salary breakup for construction chemicals company.
regards
Priyanka
From India, Delhi
41Can any one guide me on
Normally industry standard says % of Basic pay shold be 40% -45% of gross salary, but some companies aslo take 60%-70% of GS ( though I know there is no such fixed rule as per law on Basic pay)
1.My question is if we take less percentage of basic what will be the benefit to employee?
1. Benefit to employer - less PF contribution to be made.
2. Benefit to Employee - ?
Is HRA linked to basic pay like lower the basic - more deduction employee can get on HRA...
2.What is HRA % - I know it is 42% - 45%- I am correct
For Eg: if gross salary is 10000
Basic (40% of Gross) : 4000
HRA ( 42% of Basic) : 1680
Please guide me on the percentages...as I am designing the salary breakup for construction chemicals company.
regards
Priyanka
From India, Delhi
In lower bracket of basic, employee is bound to lose by way of reduction in employer share on PF and gratuity benefits.
HRA - 50% of basic in metros (Chennai, Mumbai, delhi & Kolkata) and 40% in non-metros as aper I.T.act.
Hope it is clear to you.
From India, Lucknow
HRA - 50% of basic in metros (Chennai, Mumbai, delhi & Kolkata) and 40% in non-metros as aper I.T.act.
Hope it is clear to you.
From India, Lucknow
Hi Priyanka,
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA = 40 or 50% of basic
TA = Rs. 800 (Exempted from Taxes)
Other Allowance
MobileReimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESIContribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximumceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
Annual Total Cost = Gross Per Annum + PF+ESIC
Annual total cost is also called as CTC.
Hope now it will be very much clear to you, if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA = 40 or 50% of basic
TA = Rs. 800 (Exempted from Taxes)
Other Allowance
MobileReimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESIContribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximumceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
Annual Total Cost = Gross Per Annum + PF+ESIC
Annual total cost is also called as CTC.
Hope now it will be very much clear to you, if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
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SALARY SHEET CALCULATION.xls