Hi
In my previous company at Bangalore, they had a salary structure as below
Base Salary x Basic Salary y=35% of x Flexible Compensation 65% of x Benefits Allowance 3% of x + Rs.10000 Retirement Benefits
Super Annuation 15% of y PF 12% of y
Flexible Compensation consists of
Medical Allowance 15000 as per law Annually Telephone Reimbursement As per company policy Annually Internet (Broadband) reimbursement As per company policy Annually HRA 40% of basic or actuals whichever is lesser
LTA 60000 Annually Conveyance Rs.800 without bills $Monthly
I didnt quite understand why did they have the Benefits allowance seperately as it is anyway fully taxed. Why it is not a part of Base salary.
Is Base salary any % of CTC? What I understood is you first fix the base salary and then with % calculate all the other components as I had mentioned above. Is my understanding of everything correct?
From India, Bhubaneswar
In my previous company at Bangalore, they had a salary structure as below
Base Salary x Basic Salary y=35% of x Flexible Compensation 65% of x Benefits Allowance 3% of x + Rs.10000 Retirement Benefits
Super Annuation 15% of y PF 12% of y
Flexible Compensation consists of
Medical Allowance 15000 as per law Annually Telephone Reimbursement As per company policy Annually Internet (Broadband) reimbursement As per company policy Annually HRA 40% of basic or actuals whichever is lesser
LTA 60000 Annually Conveyance Rs.800 without bills $Monthly
I didnt quite understand why did they have the Benefits allowance seperately as it is anyway fully taxed. Why it is not a part of Base salary.
Is Base salary any % of CTC? What I understood is you first fix the base salary and then with % calculate all the other components as I had mentioned above. Is my understanding of everything correct?
From India, Bhubaneswar
Dear Shaleo,
As per my Knowledge as you yourself wrote that your
Basic Salary(y) was 35% of gross or base salary & Super Annuation 15% of y PF 12% of y.
As the companies had to contribute for employee PF and also give benefits and incentives i.e Super Annuation to employees.
Just think if the organization has to give PF & SA on Base salary will it be cost effective for the companies.
To make it cost effective all this calculation or bifurcations are done on basic salary and not on base salary.
Regards,
Ritika Chaurasia.
From India, Pune
3As per my Knowledge as you yourself wrote that your
Basic Salary(y) was 35% of gross or base salary & Super Annuation 15% of y PF 12% of y.
As the companies had to contribute for employee PF and also give benefits and incentives i.e Super Annuation to employees.
Just think if the organization has to give PF & SA on Base salary will it be cost effective for the companies.
To make it cost effective all this calculation or bifurcations are done on basic salary and not on base salary.
Regards,
Ritika Chaurasia.
From India, Pune
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SALARY SHEET CALCULATION.xls
Salary calculation.doc