Dear Sir, Request for clarification with regards to Splitting of Gross Salary
For instance a person earning
1. Rs. 21000/- Per month Gross Salary
2. Rs. 90000/- Per month Gross Salary
while taking EPFO into consideration..
From India, Hyderabad
For instance a person earning
1. Rs. 21000/- Per month Gross Salary
2. Rs. 90000/- Per month Gross Salary
while taking EPFO into consideration..
From India, Hyderabad
Person earning a gross salary of Rs 21,000 per month
Break up
Baisc salary : 10,000
HRA : 5000
conveyance allownace : 1600( maximum permissible limit for IT exemption purpose)
Other allowances 4400
total 21,000
In term of CTC, in addition , you need to contribute 12% of basic salary as employers contribution towards EPF ( to be bifurcated into EFP and EPF at appropriate rates) plus Bonus plus LTA if any . Gratuity in any case is payable once an employee compltes 5 years of service and should be not be shown in CTC to avoid complication
A similar exercised be done for Rs 90,000 gross salaried person
P.Senthilkumar
From India, Chennai
49Break up
Baisc salary : 10,000
HRA : 5000
conveyance allownace : 1600( maximum permissible limit for IT exemption purpose)
Other allowances 4400
total 21,000
In term of CTC, in addition , you need to contribute 12% of basic salary as employers contribution towards EPF ( to be bifurcated into EFP and EPF at appropriate rates) plus Bonus plus LTA if any . Gratuity in any case is payable once an employee compltes 5 years of service and should be not be shown in CTC to avoid complication
A similar exercised be done for Rs 90,000 gross salaried person
P.Senthilkumar
From India, Chennai
Dear P.Senthilkumar,
I would like to draw your attention to:
1. As per Code on Wages, Basic component should not be less than 50% of the gross.
2. The Basic component should not be less than minimum wage rate as applicable.
From India, Mumbai
I would like to draw your attention to:
1. As per Code on Wages, Basic component should not be less than 50% of the gross.
2. The Basic component should not be less than minimum wage rate as applicable.
From India, Mumbai
Dear GSN1969,
You split the salary any way, PF will attract on all the components which are paid UNIVERSALLY, NECESSARILY & ORDINARILY across the board, except HRA, subject to maximum of Rs. 15000/-.
Percentage / quantum of HRA should not create suspicion of being camouflage.
The allowances should not be disproportionately high vis a vis salary.
From India, Mumbai
You split the salary any way, PF will attract on all the components which are paid UNIVERSALLY, NECESSARILY & ORDINARILY across the board, except HRA, subject to maximum of Rs. 15000/-.
Percentage / quantum of HRA should not create suspicion of being camouflage.
The allowances should not be disproportionately high vis a vis salary.
From India, Mumbai
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Gross Salary(1).xls