Dear all,
I want to know:
1. When creating a salary breakup, what is the percentage allocated to Basic, HRA, conveyance, and Medical according to statutory laws?
2. If an employee owns a house and is paying the loan for it, will they be provided with HRA and will this affect their salary breakup?
Waiting for your reply.
From India, Hyderabad
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1I want to know:
1. When creating a salary breakup, what is the percentage allocated to Basic, HRA, conveyance, and Medical according to statutory laws?
2. If an employee owns a house and is paying the loan for it, will they be provided with HRA and will this affect their salary breakup?
Waiting for your reply.
From India, Hyderabad
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Dear Sri,
When it comes to the Minimum Wages Act, it contains three slabs in which employees are categorized as:
1) Skilled
2) Semi-Skilled
3) Unskilled
The Minimum Wages Act varies from state to state and also depends on the type of industry or company registered under Shops & Establishments. You can directly obtain these details online.
When discussing the basic pay, the ultimate decision is made by the company without violating the Minimum Wages Act.
The salary structure could be as follows (example):
Basic Salary: Rs X/- (please consider every Rs X/- as basic salary)
HRA: Rs X/- * 40% (based on the company's discretion)
Professional Development Allowance: Rs X/- * 20%
Local Conveyance Allowance: Rs X/- * 10%
Medical Allowance: Rs X/- * 10%
Leave Travel Allowance: Rs X/- * 10%
Employee PF Contribution: Rs X/- * 12%
Company CTC: Rs X/- * 202% { Performance pay or bonus or variable pay: Rs X/- 100% (this is optional depending on the industry) }
Deductions:
Employee PF Contribution: Rs X/- * 12%
Employer PF Contribution: Rs X/- * 12%
ESI (optional based on manpower or availability of ESI dispensary): Rs X/- * 4.75%
Gratuity (optional): Rs. X/- * 5%
From India, Hyderabad
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When it comes to the Minimum Wages Act, it contains three slabs in which employees are categorized as:
1) Skilled
2) Semi-Skilled
3) Unskilled
The Minimum Wages Act varies from state to state and also depends on the type of industry or company registered under Shops & Establishments. You can directly obtain these details online.
When discussing the basic pay, the ultimate decision is made by the company without violating the Minimum Wages Act.
The salary structure could be as follows (example):
Basic Salary: Rs X/- (please consider every Rs X/- as basic salary)
HRA: Rs X/- * 40% (based on the company's discretion)
Professional Development Allowance: Rs X/- * 20%
Local Conveyance Allowance: Rs X/- * 10%
Medical Allowance: Rs X/- * 10%
Leave Travel Allowance: Rs X/- * 10%
Employee PF Contribution: Rs X/- * 12%
Company CTC: Rs X/- * 202% { Performance pay or bonus or variable pay: Rs X/- 100% (this is optional depending on the industry) }
Deductions:
Employee PF Contribution: Rs X/- * 12%
Employer PF Contribution: Rs X/- * 12%
ESI (optional based on manpower or availability of ESI dispensary): Rs X/- * 4.75%
Gratuity (optional): Rs. X/- * 5%
From India, Hyderabad
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What is the provision in the Act. for breakeup of Salary. In the Government, How they give the breakup to the worker breakup of the salary. Sudhir Patil
From India, Sholapur
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From India, Sholapur
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Hi Sri,
Just joined a few minutes ago. But reading through your request, it sounds like you need to have the law provisions and acts of employment in your business to know what capacity these employees are entitled to. Calculations are set within country laws themselves as laws vary depending on what the constitution deems suitable within the environment of each country and business. Therefore, if you have a corporate services department, the HR management should have knowledge of this, and the financial executive manager should be the key person to consult for calculations. It's one of the qualifications that are important skills for your organization.
Cheers,
Telesia
From Samoa, Apia
Acknowledge(1)Amend(0)
Just joined a few minutes ago. But reading through your request, it sounds like you need to have the law provisions and acts of employment in your business to know what capacity these employees are entitled to. Calculations are set within country laws themselves as laws vary depending on what the constitution deems suitable within the environment of each country and business. Therefore, if you have a corporate services department, the HR management should have knowledge of this, and the financial executive manager should be the key person to consult for calculations. It's one of the qualifications that are important skills for your organization.
Cheers,
Telesia
From Samoa, Apia
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