I will be designing salary structures for the first time for a startup organization. I have just 2 days to finalise the same. Can you help me on how to design a salary structure. How do you decide on the CTC amount. In case the CTC amount is 4.25 lacs, then how do you calculate the Basic. Once you know the basic you can calculate the remaining amounts.
From India, Mumbai
2From India, Mumbai
Usually once the CTC amount is finalised, need to frame the salary particulars, which encompasses of ...
1. Basic 35% of CTC Taxable 12400
2. DA 05% of CTC Taxable 1770
3. HRA 40% of Basic +DA Non Taxable (NT) 5670
4. Conveyance Fixed NT 800
5. Medical allowance Fixed NT 1250
6. Lunch Allowance Fixed NT 1350
7. Special Pay Balance Taxable 8920
GROSS FIXED............................................. ...........................32110
PF 12% of BASIC + DA 1700
Gratuity 05% of BASIC + DA 710
Lunch Fixed (Compy contribution) 700
Insurance Fixed (Compy contribution) 200
GROSS BENEFITS .................................................. ...................3310
CTC .................................................. ....................................35417
The other factors will also come in to place like LTA, Site Alloances, Variable pay etc depending on the nature of the company and the work involved.
the amount for insurance varies from company to company.
I have divided your above mentioned CTC of Rs. 425000 by 12 months, it comes to around 35416.66, so lets round up to Rs. 35417.
Special allowances is an taxable amount and is mainly used to balance the CTC.
I hope this will help you to understand the basic concepts of salary structure.
From India, Bangalore
1. Basic 35% of CTC Taxable 12400
2. DA 05% of CTC Taxable 1770
3. HRA 40% of Basic +DA Non Taxable (NT) 5670
4. Conveyance Fixed NT 800
5. Medical allowance Fixed NT 1250
6. Lunch Allowance Fixed NT 1350
7. Special Pay Balance Taxable 8920
GROSS FIXED............................................. ...........................32110
PF 12% of BASIC + DA 1700
Gratuity 05% of BASIC + DA 710
Lunch Fixed (Compy contribution) 700
Insurance Fixed (Compy contribution) 200
GROSS BENEFITS .................................................. ...................3310
CTC .................................................. ....................................35417
The other factors will also come in to place like LTA, Site Alloances, Variable pay etc depending on the nature of the company and the work involved.
the amount for insurance varies from company to company.
I have divided your above mentioned CTC of Rs. 425000 by 12 months, it comes to around 35416.66, so lets round up to Rs. 35417.
Special allowances is an taxable amount and is mainly used to balance the CTC.
I hope this will help you to understand the basic concepts of salary structure.
From India, Bangalore
Dear Namrata, I 've attached an excel sheet on CTC calculation for your reference. This file I downloaded it from CiteHR, hope it helps you. Regards, Jessie J
From United Arab Emirates, Dubai
From United Arab Emirates, Dubai
Basic 30% -> HRA 50% of Basic
Personal Allowance/Special Allowance/City Compensatory allowance : difference of all
Food Coupons : 1300/2600
Business Reimbursement : as per designation
PLI: the % fixed as per designation
PF : Mandatory 12% of basic or 6500
LTA : As per level
Any thing more do let me know thanks
From India, Mumbai
Personal Allowance/Special Allowance/City Compensatory allowance : difference of all
Food Coupons : 1300/2600
Business Reimbursement : as per designation
PLI: the % fixed as per designation
PF : Mandatory 12% of basic or 6500
LTA : As per level
Any thing more do let me know thanks
From India, Mumbai
Hi Guys, As requested I am attaching 2 files, check whether it clarifies your queries or else specify exactly what you are looking for, as it will be easier for all of us. Regards, Jessie J
From United Arab Emirates, Dubai
From United Arab Emirates, Dubai
Hi. i have one doubt if the CTC/Month is 12800 then what is the breakup of salary.
From India, Bangalore
From India, Bangalore
In revised pay scale formation whether higher grade officer can get same salary as compare to lower grade officer.
From India, Kolkata
From India, Kolkata
Hi , i have one question if salary amount is 60k monthly and there is no any cutting and pf facility in startup company then what is the breakup of salary.
From India, Pune
From India, Pune
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Salary-Note.doc
SALARY SHEET CALCULATION.xls