Hi Every One,
We started a new company in Hyderabad and we are about 20 people company. As of now we were paying consolidated salary ranging from 10000 to 45000. I need all your suggestions that how we can make some best salary break up of their consolidated salaries.
Thanks in advance.
From India, Hyderabad
We started a new company in Hyderabad and we are about 20 people company. As of now we were paying consolidated salary ranging from 10000 to 45000. I need all your suggestions that how we can make some best salary break up of their consolidated salaries.
Thanks in advance.
From India, Hyderabad
Hiii...
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
TA
Other Allowance
Mobile Reimbursement / Month
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= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + 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
496The 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
TA
Other Allowance
Mobile Reimbursement / Month
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= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + 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
Hi Amith
Thank you very much for your reply.
As we are new, if we want to implement PF for all the employees, what should we do at employer side. Please provide me these details.
Thanks in advance.
Srinivas
From India, Hyderabad
Thank you very much for your reply.
As we are new, if we want to implement PF for all the employees, what should we do at employer side. Please provide me these details.
Thanks in advance.
Srinivas
From India, Hyderabad
Hi Srinivas..
Welcome.. Its pleasure that it helped you in your works..
Find below the details regarding the new employer's obligation to get registered with ESI and PF...
The formalities for ESI is you must have a strength of 20 employees, no matter whether they are getting salary more than 10000/- or lesser. As maxcimum ceiling of ESI contribution is upto 10000/- Gross/Month only. Those getting 10001/- will be exempted from the ESI.
Yes ESI and ESIC is same. ESIC stands for Employee State Insurance Corporation..
The Employer should get the Factory or Establishment registered with the ESI Corporation within 15 days of the applicability of ESI Act. The declaration of registration is to be filled in form 01, along with a separate sheet containing the name and address of the Establishment, number of employees, nature of duty and name, designation and address of the manager controlling such persons, in respect of office situated outside. After been satisfied with the application the ESI regional office will allot a code number to the employer.
After that only you can register your emplyees with the ESI. They have to fill up a declaration form FORM 1, written clearly Male or Female. All the declaration forms should be counter signed by the employer.
Then prepare a return of declaration in form 3 separate for Male & Female within 10 days of filling of declaration form.
Then every employee shall be alloted an temporary identification number.
To get registered with the PF department also the minimum number of employee should be 20.
Every employer of an establishment to which the Employee Provident Fund Act applies, should submit in Form 5A(in duplicate) to the commisioner, particulars of all the branches and departments, owners, directors, partners if any or any other person who is controlling its affair within 15 days of its applicability of the scheme.
On receipt of Form 5A, the commisioner shall verify the particulars submitted and after been satisfied shall allot an Establishment Code No.
Hope now it will be very much clear with you.
Regards,
Amit Seth.
From India, Ahmadabad
Welcome.. Its pleasure that it helped you in your works..
Find below the details regarding the new employer's obligation to get registered with ESI and PF...
The formalities for ESI is you must have a strength of 20 employees, no matter whether they are getting salary more than 10000/- or lesser. As maxcimum ceiling of ESI contribution is upto 10000/- Gross/Month only. Those getting 10001/- will be exempted from the ESI.
Yes ESI and ESIC is same. ESIC stands for Employee State Insurance Corporation..
The Employer should get the Factory or Establishment registered with the ESI Corporation within 15 days of the applicability of ESI Act. The declaration of registration is to be filled in form 01, along with a separate sheet containing the name and address of the Establishment, number of employees, nature of duty and name, designation and address of the manager controlling such persons, in respect of office situated outside. After been satisfied with the application the ESI regional office will allot a code number to the employer.
After that only you can register your emplyees with the ESI. They have to fill up a declaration form FORM 1, written clearly Male or Female. All the declaration forms should be counter signed by the employer.
Then prepare a return of declaration in form 3 separate for Male & Female within 10 days of filling of declaration form.
Then every employee shall be alloted an temporary identification number.
To get registered with the PF department also the minimum number of employee should be 20.
Every employer of an establishment to which the Employee Provident Fund Act applies, should submit in Form 5A(in duplicate) to the commisioner, particulars of all the branches and departments, owners, directors, partners if any or any other person who is controlling its affair within 15 days of its applicability of the scheme.
On receipt of Form 5A, the commisioner shall verify the particulars submitted and after been satisfied shall allot an Establishment Code No.
Hope now it will be very much clear with you.
Regards,
Amit Seth.
From India, Ahmadabad
As a part of salary Structure include variable portion of pay if you have performance related targets. you can either include a fixed medical allowance of just make a provision for medical insurance. ESI is mandatory but the services are not upto the mark.
Dear Amit,
Really Excellent Answer to my query. Not only for me, you have given a suitable answer to lot of people who started companies recently and they don't have dedicated HR staff or HR staff with little working knowledge.
Thanks again.
Srinivas
From India, Hyderabad
Really Excellent Answer to my query. Not only for me, you have given a suitable answer to lot of people who started companies recently and they don't have dedicated HR staff or HR staff with little working knowledge.
Thanks again.
Srinivas
From India, Hyderabad
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