Hi Friends,
First let me thank all of the HR Fraternity to share their views, suggestion regarding “BOND SIGNING (6 mth)”. Again there is one more interesting topic on which I am looking fwd your views & suggestions.
In Pay slips we have seen the component such as Basic/HRA/Conveynce/special arrear/special allowance- my questions:
· Is there any “THUMB RULE”, on the basis of which these entire components are calculated or it differ from company to company?
· Second, if any employee tries to manipulate things in the pay slip, how a HR person can sense that?
· Third, your comments; regarding the attached pay slip- whether it’s a fake/manipulated or genuine, with reasons.
Looking fwd for similar kind of co-operation what I received last time.
Regards,
Varun
From India, Bangalore
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1First let me thank all of the HR Fraternity to share their views, suggestion regarding “BOND SIGNING (6 mth)”. Again there is one more interesting topic on which I am looking fwd your views & suggestions.
In Pay slips we have seen the component such as Basic/HRA/Conveynce/special arrear/special allowance- my questions:
· Is there any “THUMB RULE”, on the basis of which these entire components are calculated or it differ from company to company?
· Second, if any employee tries to manipulate things in the pay slip, how a HR person can sense that?
· Third, your comments; regarding the attached pay slip- whether it’s a fake/manipulated or genuine, with reasons.
Looking fwd for similar kind of co-operation what I received last time.
Regards,
Varun
From India, Bangalore
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Hi,
Please refer to the salary breakup calculator. Each component is a percentage of the gross, so it is not very tough to figure out from the calculations.
About the genuineness of the payslip, well, I presume it is from someone in an IT company since the variable pay component is common in IT or BPO industries. Generally, the contents of a payslip are more organized with the Earnings and Deductions shown separately. This payslip does not have a professional touch.
From India, Mumbai
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Please refer to the salary breakup calculator. Each component is a percentage of the gross, so it is not very tough to figure out from the calculations.
About the genuineness of the payslip, well, I presume it is from someone in an IT company since the variable pay component is common in IT or BPO industries. Generally, the contents of a payslip are more organized with the Earnings and Deductions shown separately. This payslip does not have a professional touch.
From India, Mumbai
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Hi Varun,
I cannot comment on whether it's fake or original. Instead, I can say that it has not been calculated in the way it is supposed to be.
The first reason is if you look at the March month slip, there is a difference in the basic amount from that of the February month, but there is no difference in HRA, which is practically not possible.
Secondly, there is no proper calculation of Income tax (again, there is a difference between Feb & Mar). When the basic is high, the net is low, and when basic is low, net pay is high. Similarly, the deductions.
In general, this is not a structured payslip.
Regards,
Vijayakumar
From India, Coimbatore
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I cannot comment on whether it's fake or original. Instead, I can say that it has not been calculated in the way it is supposed to be.
The first reason is if you look at the March month slip, there is a difference in the basic amount from that of the February month, but there is no difference in HRA, which is practically not possible.
Secondly, there is no proper calculation of Income tax (again, there is a difference between Feb & Mar). When the basic is high, the net is low, and when basic is low, net pay is high. Similarly, the deductions.
In general, this is not a structured payslip.
Regards,
Vijayakumar
From India, Coimbatore
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Hi Varun,
One can always check with the HR Department of the previous company about the CTC. Most companies send a reference check form to the previous employer, wherein questions about CTC are mentioned.
The second way is to ask for Form 16 or a bank statement if you feel the payslip is fake.
Regards, Sanjay
From India, Mumbai
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One can always check with the HR Department of the previous company about the CTC. Most companies send a reference check form to the previous employer, wherein questions about CTC are mentioned.
The second way is to ask for Form 16 or a bank statement if you feel the payslip is fake.
Regards, Sanjay
From India, Mumbai
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As far as I know, PF and Professional Tax cannot be deducted for the same person. Professional Tax is deducted in retainership cases where we are taking the help of professionals, while PF is deducted in the case of employees who are on the payroll of the company. How is it possible that a person is on retainership and payroll at the same time? So, in my view, the payslip is fake.
Regards,
Abhishek
From India, New Delhi
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Regards,
Abhishek
From India, New Delhi
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Hi,
In the said payslip, deductions & earnings are not separated, and in gross earnings, his income tax is also calculated, so it shows it's fake.
Things to observe in a salary slip are:
1. Earnings & deductions are separate.
2. If PF is deducted, the PF No. should be verified.
3. It should be on the company's printed stationery or with authorized stamp & signature.
4. Ask for Form 16 & check at least three months' salary slips.
5. You can call back the company or verify through mail on the official ID of his HR or Director.
There is no thumb rule as such to calculate the salary; it can be a single component also.
Thanks,
Shilpa
From India, Pune
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In the said payslip, deductions & earnings are not separated, and in gross earnings, his income tax is also calculated, so it shows it's fake.
Things to observe in a salary slip are:
1. Earnings & deductions are separate.
2. If PF is deducted, the PF No. should be verified.
3. It should be on the company's printed stationery or with authorized stamp & signature.
4. Ask for Form 16 & check at least three months' salary slips.
5. You can call back the company or verify through mail on the official ID of his HR or Director.
There is no thumb rule as such to calculate the salary; it can be a single component also.
Thanks,
Shilpa
From India, Pune
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Dear Varun,
A good question you have asked. I ask this question to most HR professionals coming for an interview with my company. The salary components are divided as follows:
1. Basic: This is the actual salary paid to an employee and depends on the skill level. You can measure the skill of the employee based on the basic salary. The remaining components are called allowances.
2. DA (Dearness Allowance): This is to defray the cost of the increase in the inflation rate based on the price index.
3. HRA (House Rent Allowance): As everyone is aware, this depends on the prevailing house rent in that area and is fixed based on the basic salary (i.e., the capability of the employee).
4. CCA (City Compensatory Allowance): This is to defray the additional costs incurred by the employee by working in metro cities.
Most allowances are paid based on requirements; they can be added or deleted. For example, CCA will not be paid when you transfer to rural areas. Basic is the only factor that cannot be reduced.
Normally, if anyone asks about the salary, we have to mention only the basic salary as it reflects the skill of the person.
Another piece of information I found on the state government salary slip of West Bengal is that a "flake allowance" is shown. Upon probing, I discovered that 60 years ago, the state was attacked by a flake disease, and the government paid a special allowance to defray the additional costs due to the epidemic. However, I am unsure why this is still being paid. It should be withdrawn; otherwise, it seems absurd.
Regards,
M S Viswanathan
9884085514 😃😳
From India, Chennai
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A good question you have asked. I ask this question to most HR professionals coming for an interview with my company. The salary components are divided as follows:
1. Basic: This is the actual salary paid to an employee and depends on the skill level. You can measure the skill of the employee based on the basic salary. The remaining components are called allowances.
2. DA (Dearness Allowance): This is to defray the cost of the increase in the inflation rate based on the price index.
3. HRA (House Rent Allowance): As everyone is aware, this depends on the prevailing house rent in that area and is fixed based on the basic salary (i.e., the capability of the employee).
4. CCA (City Compensatory Allowance): This is to defray the additional costs incurred by the employee by working in metro cities.
Most allowances are paid based on requirements; they can be added or deleted. For example, CCA will not be paid when you transfer to rural areas. Basic is the only factor that cannot be reduced.
Normally, if anyone asks about the salary, we have to mention only the basic salary as it reflects the skill of the person.
Another piece of information I found on the state government salary slip of West Bengal is that a "flake allowance" is shown. Upon probing, I discovered that 60 years ago, the state was attacked by a flake disease, and the government paid a special allowance to defray the additional costs due to the epidemic. However, I am unsure why this is still being paid. It should be withdrawn; otherwise, it seems absurd.
Regards,
M S Viswanathan
9884085514 😃😳
From India, Chennai
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Dear Abhishek,
Your version is totally wrong. The professional tax is levied by the municipal authorities. This should be paid by all employed in their municipal jurisdiction, whether full-time professionals (doctors, advocates, etc.) or salaried employees. For salaried employees, both PF and professional tax should be deducted. The professional tax is paid twice a year, and Provident Fund is a form of social security. Please do not confuse.
Regards,
M S Viswanathan
9884085514
From India, Chennai
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Your version is totally wrong. The professional tax is levied by the municipal authorities. This should be paid by all employed in their municipal jurisdiction, whether full-time professionals (doctors, advocates, etc.) or salaried employees. For salaried employees, both PF and professional tax should be deducted. The professional tax is paid twice a year, and Provident Fund is a form of social security. Please do not confuse.
Regards,
M S Viswanathan
9884085514
From India, Chennai
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Hi Varun,
The payslip you have posted is fake for sure. The reasons are very simple:
1. P.Tax is not part of the gross salary; it is a deduction as it is a statutory obligation. P.Tax rates differ from state to state.
2. Income tax cannot be part of the gross salary. It is deducted from your gross salary. No company can even provision for the payment of income tax back to the employee as it differs based on the expenses and savings of the employee.
Regards,
Anup
From India, Hyderabad
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The payslip you have posted is fake for sure. The reasons are very simple:
1. P.Tax is not part of the gross salary; it is a deduction as it is a statutory obligation. P.Tax rates differ from state to state.
2. Income tax cannot be part of the gross salary. It is deducted from your gross salary. No company can even provision for the payment of income tax back to the employee as it differs based on the expenses and savings of the employee.
Regards,
Anup
From India, Hyderabad
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Hi,
I am enclosing a template of a professionally made payslip. If the payslip is fake, the person who has shown it generally makes a mistake. However, there are clever individuals around as well. The best way is to confirm with HR about two things:
- CTC of the individual
- Whether he/she has been relieved from the service.
From India, Hyderabad
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I am enclosing a template of a professionally made payslip. If the payslip is fake, the person who has shown it generally makes a mistake. However, there are clever individuals around as well. The best way is to confirm with HR about two things:
- CTC of the individual
- Whether he/she has been relieved from the service.
From India, Hyderabad
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Dear Mr. Vishwanathan, I think you should consult some CA in this regard. A company cannot deduct Professional tax from its employee. It can deduct only Income Tax. Regards Abhishek
From India, New Delhi
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From India, New Delhi
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Hi,
First, to clarify Abhishek's point - A company must deduct the professional tax as per the rules stipulated by the state in which the employee is working. This may differ even within the company employees if the branches of the company are located in different states.
Hi Arun,
The payslip looks fake to me.
1. Basic Pay: According to the rules of the Government of India, an employee's basic pay can never be reduced by the company unless there is a disciplinary action. (If there is any disciplinary action, the company would prefer to terminate him rather than just reducing the basic pay).
2. HRA: Normally, the industry rate is 40% of basic pay. This is the maximum percentage of HRA that is allowed as non-taxable (if I am correct) if the employee produces the rent receipt. Also, this is always as a percentage of basic. In the payslip shown by you, the HRA was the same for Feb and Mar even though the basic was different. This changes again in April. This is virtually impossible as software companies will only enter the BASIC PAY in the calculator; the rest will be calculated as a percentage of basic.
3. In the month of April, the salary was 44,656.00 and the income tax deducted was only 1192.00 which is impossible. The maximum savings allowed in India is only 100,000 and for a gross income of 44,000, no company would deduct just 1192 income tax.
I think this is sufficient to conclude that it is fake.
Good luck
From India, Bangalore
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First, to clarify Abhishek's point - A company must deduct the professional tax as per the rules stipulated by the state in which the employee is working. This may differ even within the company employees if the branches of the company are located in different states.
Hi Arun,
The payslip looks fake to me.
1. Basic Pay: According to the rules of the Government of India, an employee's basic pay can never be reduced by the company unless there is a disciplinary action. (If there is any disciplinary action, the company would prefer to terminate him rather than just reducing the basic pay).
2. HRA: Normally, the industry rate is 40% of basic pay. This is the maximum percentage of HRA that is allowed as non-taxable (if I am correct) if the employee produces the rent receipt. Also, this is always as a percentage of basic. In the payslip shown by you, the HRA was the same for Feb and Mar even though the basic was different. This changes again in April. This is virtually impossible as software companies will only enter the BASIC PAY in the calculator; the rest will be calculated as a percentage of basic.
3. In the month of April, the salary was 44,656.00 and the income tax deducted was only 1192.00 which is impossible. The maximum savings allowed in India is only 100,000 and for a gross income of 44,000, no company would deduct just 1192 income tax.
I think this is sufficient to conclude that it is fake.
Good luck
From India, Bangalore
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Hi Abhishek,
Somewhere doesn't deduct the professional tax (e.g., in Lucknow, UP, they don't deduct PT from my salary. I don't know why), so how can I say this one is fake. If there are any standard rules for this, please inform me.
From India, Lucknow
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Somewhere doesn't deduct the professional tax (e.g., in Lucknow, UP, they don't deduct PT from my salary. I don't know why), so how can I say this one is fake. If there are any standard rules for this, please inform me.
From India, Lucknow
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Dear All, i need salary breakup -12k... kindly attached the 12k salary structure Regards Damodar
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Sir,
I have one question. I had been previously working in one of the branches existing in a rural area of a company for 6 months, and after that, they promoted me to regional accountant. So, I just want to know if my revised salary breakdown is right or fair.
Previously,
Basic - 15000
HRA - 6000
Uniform - 0
Special Allowance - 3800
Gross Monthly - 24800
EPF - 1800
Gratuity - 722
Monthly CTC - 27322
Annual CTC - 327864
Revised (Current),
Basic - 15000
HRA - 6000
Uniform - 3000
Special Allowance - 4081
Gross Monthly - 28081
EPF - 1800
Gratuity - 721
Monthly CTC - 30602
Annual CTC - 355164
From India, Nahorkatiya
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I have one question. I had been previously working in one of the branches existing in a rural area of a company for 6 months, and after that, they promoted me to regional accountant. So, I just want to know if my revised salary breakdown is right or fair.
Previously,
Basic - 15000
HRA - 6000
Uniform - 0
Special Allowance - 3800
Gross Monthly - 24800
EPF - 1800
Gratuity - 722
Monthly CTC - 27322
Annual CTC - 327864
Revised (Current),
Basic - 15000
HRA - 6000
Uniform - 3000
Special Allowance - 4081
Gross Monthly - 28081
EPF - 1800
Gratuity - 721
Monthly CTC - 30602
Annual CTC - 355164
From India, Nahorkatiya
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Sample of Pay Slip.zip
Salary slip final.xls