Hi everyone, I am Sujan. I am working in an MNC. Can anyone please help me out in preparing payroll for ten employees? Till now, there were no payslips given to employees. I would like to know what are the main components to be kept in mind while designing payroll.
From India, Vijayawada
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From India, Vijayawada
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Dear Sujan,
While designing payroll, you should keep these components in mind:
1- Basic (40% to 60% of gross)
2- HRA (40% to 60% of Basic)
3- Conveyance allowance (up to 800 is tax exempted)
4- Medical reimbursement (up to 1250 is tax exempted)
5- Education allowance
6- Special allowance {Gross - (1 + 2 + 3 + 4 + 5)}
7- Gross (1 + 2 + 3 + 4 + 5 + 6)
8- PF (if applicable)
9- ESI (if applicable)
10- PT (if applicable)
11- Other deductions
12- Net take-home {Gross - (8 + 9 + 10 + 11)}
13- Bonus/Ex gratia
14- LTA
15- CTC [Gross + (PF + ESI + Bonus + LTA)]
You can also have other components in gross like petrol reimbursement, meal coupon, etc.
Regards,
Bandini.
From India, Delhi
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1While designing payroll, you should keep these components in mind:
1- Basic (40% to 60% of gross)
2- HRA (40% to 60% of Basic)
3- Conveyance allowance (up to 800 is tax exempted)
4- Medical reimbursement (up to 1250 is tax exempted)
5- Education allowance
6- Special allowance {Gross - (1 + 2 + 3 + 4 + 5)}
7- Gross (1 + 2 + 3 + 4 + 5 + 6)
8- PF (if applicable)
9- ESI (if applicable)
10- PT (if applicable)
11- Other deductions
12- Net take-home {Gross - (8 + 9 + 10 + 11)}
13- Bonus/Ex gratia
14- LTA
15- CTC [Gross + (PF + ESI + Bonus + LTA)]
You can also have other components in gross like petrol reimbursement, meal coupon, etc.
Regards,
Bandini.
From India, Delhi
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Dear Bandini,
This is Malini. I am here having a doubt on what basis 800 tax is exempted (like at what % under which section con.allow & more over for Med allow 1667/-(20000*8.33%) (limit is 20000), but I am not clear on both of these. Please give me on what basis you have exempted.
Malini.
From India, Hyderabad
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This is Malini. I am here having a doubt on what basis 800 tax is exempted (like at what % under which section con.allow & more over for Med allow 1667/-(20000*8.33%) (limit is 20000), but I am not clear on both of these. Please give me on what basis you have exempted.
Malini.
From India, Hyderabad
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Rules for Statutory Deductions Exemptions Perquisites-Pay roll.doc
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Employee's Compensation Act-2009.pdf