Hi,
What is the salary break-up? How will the salary be divided, and is it mandatory to have a breakup? Also, please mention the percentage and the procedure for handling the entire salary structure.
A few more questions:
a. If a proprietorship consultancy pays cash as salary (not credited to an account), is it correct? Does the proprietor or owner have to pay any tax to the government or someone else? Kindly explain the procedure.
b. What are the different software used by big companies for HR salary and other HR functions?
c. Is it possible to transition from recruitment to a payroll executive role without prior experience?
From India, Mumbai
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What is the salary break-up? How will the salary be divided, and is it mandatory to have a breakup? Also, please mention the percentage and the procedure for handling the entire salary structure.
A few more questions:
a. If a proprietorship consultancy pays cash as salary (not credited to an account), is it correct? Does the proprietor or owner have to pay any tax to the government or someone else? Kindly explain the procedure.
b. What are the different software used by big companies for HR salary and other HR functions?
c. Is it possible to transition from recruitment to a payroll executive role without prior experience?
From India, Mumbai
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Hello, we'll go one by one.
Yes, a salary breakup is mandatory because it gives you a clear idea about your earnings and contributions. The salary structure is nothing but Basic+DA+HRA+Conveyance+other allowances minus your contributions (PF+ESIC+LWF+PT). If a proprietor is paying someone in cash, it means he is not showing your employment legally to the government, so he doesn't need to pay any tax or contribution for that employee.
Each company uses different types of software for their daily activities. It can be PAYROLL or anything else as per its needs. It is possible; you only need to keep on learning new things.
Regards, Rashvi
From India, Sangli
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Yes, a salary breakup is mandatory because it gives you a clear idea about your earnings and contributions. The salary structure is nothing but Basic+DA+HRA+Conveyance+other allowances minus your contributions (PF+ESIC+LWF+PT). If a proprietor is paying someone in cash, it means he is not showing your employment legally to the government, so he doesn't need to pay any tax or contribution for that employee.
Each company uses different types of software for their daily activities. It can be PAYROLL or anything else as per its needs. It is possible; you only need to keep on learning new things.
Regards, Rashvi
From India, Sangli
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Hi Rashvi,
Could you please provide me with a breakdown of a gross monthly income of 12000? I would like to see the percentage breakdown for each of the following components:
- Basic
- Dearness Allowance (DA)
- House Rent Allowance (HRA)
- Conveyance
- Other allowances
Additionally, I would like to know the percentage of my contributions towards Provident Fund (PF), Employee State Insurance Corporation (ESIC), Labour Welfare Fund (LWF), and Professional Tax (PT).
Thank you.
From India, Mumbai
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Could you please provide me with a breakdown of a gross monthly income of 12000? I would like to see the percentage breakdown for each of the following components:
- Basic
- Dearness Allowance (DA)
- House Rent Allowance (HRA)
- Conveyance
- Other allowances
Additionally, I would like to know the percentage of my contributions towards Provident Fund (PF), Employee State Insurance Corporation (ESIC), Labour Welfare Fund (LWF), and Professional Tax (PT).
Thank you.
From India, Mumbai
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Breakup of $12,000.00 monthly salary
Basic - $4,800 (40% of Gross salary)
HRA - $2,400 (50% of basic)
TA - $800
MA - $1,250
SA - $1,500
_____________
Total - $10,750.00 (net salary)
______________
Deductions:
PF - $576 (12% of basic)
ESI - $84 (1.75% of basic)
LWF - $5
PT - Not applicable
Please correct me if I am wrong.
From India, Delhi
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Basic - $4,800 (40% of Gross salary)
HRA - $2,400 (50% of basic)
TA - $800
MA - $1,250
SA - $1,500
_____________
Total - $10,750.00 (net salary)
______________
Deductions:
PF - $576 (12% of basic)
ESI - $84 (1.75% of basic)
LWF - $5
PT - Not applicable
Please correct me if I am wrong.
From India, Delhi
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1
Dear Seniors in HR,
Please clarify the doubts regarding the Minimum Wages Structure. We are running a Catering Service in Coimbatore. I am familiar with the Minimum Wages under the TN Catering Establishment Act-1958-59. However, I am unsure about the washing allowance that should be provided to our employees as Washing Allowance is not covered under The ESI Act-1948. Kindly provide clarification on this matter.
S. Mohan MLM, DLLAL, DCS, MBA (Pursuing) HR Manager Coimbatore-641004 Cell: 94430 42311
From India, Coimbatore
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Please clarify the doubts regarding the Minimum Wages Structure. We are running a Catering Service in Coimbatore. I am familiar with the Minimum Wages under the TN Catering Establishment Act-1958-59. However, I am unsure about the washing allowance that should be provided to our employees as Washing Allowance is not covered under The ESI Act-1948. Kindly provide clarification on this matter.
S. Mohan MLM, DLLAL, DCS, MBA (Pursuing) HR Manager Coimbatore-641004 Cell: 94430 42311
From India, Coimbatore
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Hi, thanks for the salary structure. Is there any percentage taken for all allowances from the basic wage? What is the percentage of contribution to PF you have taken? Please explain. Why should you deduct gratuity in the salary structure?
Regards,
P.Rajaganapathy
From India, Madras
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Regards,
P.Rajaganapathy
From India, Madras
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Dear Vimla,
ESIC:
Employer's contribution: 4.75% of Gross Pay
Employee's deduction: 1.75% of Gross Pay
PF:
Employer's contribution: 12% (10%) of Basic Pay
Employee's deduction: 12% of Basic Pay
Gratuity calculation:
Gratuity = (Monthly Salary x 15 days x No. of yrs. of service) / 26
Regards,
Abhishek
From India, Vadodara
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ESIC:
Employer's contribution: 4.75% of Gross Pay
Employee's deduction: 1.75% of Gross Pay
PF:
Employer's contribution: 12% (10%) of Basic Pay
Employee's deduction: 12% of Basic Pay
Gratuity calculation:
Gratuity = (Monthly Salary x 15 days x No. of yrs. of service) / 26
Regards,
Abhishek
From India, Vadodara
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Just want one clarification...:
Is CTC means that employer's contribution for PF/ESI is also deducted in the said CTC, or should the Employer pay separately from company accounts? Please give some suggestions on the same. Since I have come across one company where PF/ESI contribution of the employer is being deducted from the employee's salary, i.e., from the employee's CTC.
Regards,
Yohan
From India, Mangaluru
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Is CTC means that employer's contribution for PF/ESI is also deducted in the said CTC, or should the Employer pay separately from company accounts? Please give some suggestions on the same. Since I have come across one company where PF/ESI contribution of the employer is being deducted from the employee's salary, i.e., from the employee's CTC.
Regards,
Yohan
From India, Mangaluru
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