How do we calculate BASIC when an organization does not provide the breakdown? The organization only mentions the CTC and nothing else. So, how do I determine the BASIC pay? Are there any fixed percentages?
Thanks
From India, Karimnagar
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Thanks
From India, Karimnagar
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Please review the corrected text below:
Check this salary structure, which we are following:
Salary Head - CTC above 3.5 lakhs - below 3.5 lakhs
Basic: 30% on CTC; 26% on CTC
HRA: 40% on Basic; 40% on Basic
LTA: 5% on CTC; 10% on CTC
Conveyance: Rs. 9600/- per year fixed
Medical Reimbursement: Rs. 15000/- per year fixed
Other Allowances: Remaining in CTC
Regards,
Vijay
From India, Bangalore
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Check this salary structure, which we are following:
Salary Head - CTC above 3.5 lakhs - below 3.5 lakhs
Basic: 30% on CTC; 26% on CTC
HRA: 40% on Basic; 40% on Basic
LTA: 5% on CTC; 10% on CTC
Conveyance: Rs. 9600/- per year fixed
Medical Reimbursement: Rs. 15000/- per year fixed
Other Allowances: Remaining in CTC
Regards,
Vijay
From India, Bangalore
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Hello , Hey vijay you have not mention about the PF and check with your employer they want to include PF amount in ctc or not . from both the side or it is excluded . Thanks, Mehra
From India, Pune
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7From India, Pune
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Hello , Hey vijay you have not mention about the PF and check with your employer they want to include PF amount in ctc or not . from both the side or it is excluded . Thanks, Mehra :)
From India, Pune
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From India, Pune
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Hi Vijay, How did u arrive to a percentage of 30% for BASIC over CTC. I mean on what basis was 30% fixed. Do we have any section defined or is it by place or is it by comp. :-(
From India, Karimnagar
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From India, Karimnagar
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Hi dear, when will you receive your salary with the addition of EPF or ESIC contributions from the employer if deducted? Otherwise, you won't receive it simply. Don't try to calculate because the company can add anything, such as providing meal coupons, fixed telephone bills, or anything else. Therefore, inquire about your gross salary:
- Basic: 4000
- HRA: 1200
- Gross: 5200
- Employer ESIC (4.75%): 247
- Employer EPF (12%): 480
- Meal coupon: 300
- Fixed mobile rent: 299
- Employer contribution of lunch: 250
- Net CTC: 6776
From India, Delhi
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- Basic: 4000
- HRA: 1200
- Gross: 5200
- Employer ESIC (4.75%): 247
- Employer EPF (12%): 480
- Meal coupon: 300
- Fixed mobile rent: 299
- Employer contribution of lunch: 250
- Net CTC: 6776
From India, Delhi
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Dear all Pl. give me salary break up in view of tax planning for gross salary of Rs.5.00 lacs p.a. I am free to manage my salary from employer.
From India, Delhi
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From India, Delhi
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Dear Mehra & Bhuchi,
I have provided a brief description of the major components in CTC. Both employee and employer PF contributions are included in CTC. Additionally, there are other allowances such as petrol, entertainment, telephone, and driver salary allowances that will be reflected on the pay slip (for those with a CTC exceeding 3.5 lakhs).
Please advise me if I have forgotten anything!
Thank you.
From India, Bangalore
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I have provided a brief description of the major components in CTC. Both employee and employer PF contributions are included in CTC. Additionally, there are other allowances such as petrol, entertainment, telephone, and driver salary allowances that will be reflected on the pay slip (for those with a CTC exceeding 3.5 lakhs).
Please advise me if I have forgotten anything!
Thank you.
From India, Bangalore
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Hi,
There are no hard and fast rules when it comes to determining the basic salary. Normally, the basic is determined at 30-40% (there is no law on this). The remaining amount is divided among various perks, as they are often called. I remember in one company about 20 years back, I took the complete salary as basic, which seemed strange at the time.
There are some advantages and some disadvantages to this approach. The advantages include:
- PF is deducted on the entire amount
- Leave salary is encashed on the entire amount
- Bonus is calculated on the entire salary
- LTA will be higher if it's calculated on the basic salary
- Sometimes, HRA, CCA, etc., will be given on a percentage basis of the basic salary
On the other hand, the disadvantages are:
- The entire salary will be considered for income tax purposes
- Your salary will be known to all
However, if you plan your savings and investments well, you may be able to navigate the income tax net. All in all, the normal practice is to keep the basic salary anywhere between 30% to 40%.
I hope this explanation suffices.
Regards,
Nagaraj
From India, Bangalore
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There are no hard and fast rules when it comes to determining the basic salary. Normally, the basic is determined at 30-40% (there is no law on this). The remaining amount is divided among various perks, as they are often called. I remember in one company about 20 years back, I took the complete salary as basic, which seemed strange at the time.
There are some advantages and some disadvantages to this approach. The advantages include:
- PF is deducted on the entire amount
- Leave salary is encashed on the entire amount
- Bonus is calculated on the entire salary
- LTA will be higher if it's calculated on the basic salary
- Sometimes, HRA, CCA, etc., will be given on a percentage basis of the basic salary
On the other hand, the disadvantages are:
- The entire salary will be considered for income tax purposes
- Your salary will be known to all
However, if you plan your savings and investments well, you may be able to navigate the income tax net. All in all, the normal practice is to keep the basic salary anywhere between 30% to 40%.
I hope this explanation suffices.
Regards,
Nagaraj
From India, Bangalore
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Sathish.ctc and income tax planning.xls
SALARY CALCULATOR & INCOME TAX.zip