Hi all,
I want to know how to calculate salary breakups like Basic, HRA, EA, etc., from the take-home salary of a candidate (not from the CTC of a person). For example, if a candidate's take-home salary has been fixed at Rs. 10,000 per month, how do I frame the salary breakup from that?
From India, Tiruchchirappalli
Acknowledge(0)
Amend(0)
3I want to know how to calculate salary breakups like Basic, HRA, EA, etc., from the take-home salary of a candidate (not from the CTC of a person). For example, if a candidate's take-home salary has been fixed at Rs. 10,000 per month, how do I frame the salary breakup from that?
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)
Salary breakup is a critical part of compensation management. My suggestion is that whatever is agreed upon by the management to be paid to an employee should have the following components:
- Basic salary: minimum 50%
- HRA: 40% to 50% of Basic salary
- Conveyance Allowance: Amount exempt from Income tax for attending daily duty.
The balance amount can be given any terminology depending upon the location, as some amounts are non-taxable in certain areas. It is important to note that the minimum wages prescribed by the state government should not be further bifurcated to avoid EPF and ESI contributions, as these are need-based wages.
Plan your structure accordingly.
Regards
From India, Chandigarh
Acknowledge(0)Amend(0)
- Basic salary: minimum 50%
- HRA: 40% to 50% of Basic salary
- Conveyance Allowance: Amount exempt from Income tax for attending daily duty.
The balance amount can be given any terminology depending upon the location, as some amounts are non-taxable in certain areas. It is important to note that the minimum wages prescribed by the state government should not be further bifurcated to avoid EPF and ESI contributions, as these are need-based wages.
Plan your structure accordingly.
Regards
From India, Chandigarh
Acknowledge(0)Amend(0)
Can we calculate Basic, HRA, EA, Coveyance allowance from Net pay (i.e. Take home salary)?
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)
Hi,
Below is the rough calculation for a net pay of 10,000.
Particulars of Compensation Per Month:
Basic: 5000
HRA: 2000
Conveyance Allowance: 1600
Special Allowance: 2200
Food Allowance: 200
Vehicle Allowance: -
Gross: 11000
Deductions:
PF (12% of Basic): 600
ESIC (1.75% of Gross): 193
PT: 200
Total Deduction: 993
Net Pay - Take Home (Gross - Total Deduction): 10007
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Below is the rough calculation for a net pay of 10,000.
Particulars of Compensation Per Month:
Basic: 5000
HRA: 2000
Conveyance Allowance: 1600
Special Allowance: 2200
Food Allowance: 200
Vehicle Allowance: -
Gross: 11000
Deductions:
PF (12% of Basic): 600
ESIC (1.75% of Gross): 193
PT: 200
Total Deduction: 993
Net Pay - Take Home (Gross - Total Deduction): 10007
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you Gadekarlina. Can you please share me the calculation for the same in Excel format (with formulas & calculation), it will be very useful for me..
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Salary with TDS Calculation-Fin al Amended for net.xls