Would anyone help me explain the Salary Breakups of an employee along with its abbreviations and descriptions of each subheadings???
From India, Madras
1From India, Madras
Hello,
Major component of the salary are as
1. Basic
2. HRA (House Rent Allowances)
3. DA (Dearness Allowances)
4. Medical
5. Transport
6. Supplementary allowances
7. Merit Pay
Optional components
1. Children Allowances
2. Hostel Allowances
3. Education Allowances
4. Car running allowances
5. Telephone allowances
From India, Delhi
Major component of the salary are as
1. Basic
2. HRA (House Rent Allowances)
3. DA (Dearness Allowances)
4. Medical
5. Transport
6. Supplementary allowances
7. Merit Pay
Optional components
1. Children Allowances
2. Hostel Allowances
3. Education Allowances
4. Car running allowances
5. Telephone allowances
From India, Delhi
HI,
Supplementary Allowances - Its dends on the salary. you should first covreagre the major component, then if any balance amount is due then it can be put as supplementary allowance.
Merit pay - Its a back up amount, which will be deducted from employee's salary & can be paid quarterly, halhyearly, yearly or monthly. It is deducted for purpose the, employee can not leave the job soon.
From India, Delhi
Supplementary Allowances - Its dends on the salary. you should first covreagre the major component, then if any balance amount is due then it can be put as supplementary allowance.
Merit pay - Its a back up amount, which will be deducted from employee's salary & can be paid quarterly, halhyearly, yearly or monthly. It is deducted for purpose the, employee can not leave the job soon.
From India, Delhi
Hi,
Use this method it may helps you.
Consider 45% as basic on CTC
Consider 40% (Non Metro) or 50% (metro) on Basic as HRA
Consider Rs.800/- p/month as Conveyance Allowance (Tax benefit)
Consider Rs.1250/- p/Month as medical Allowance (Tax benefit)
The balance you can consider as special Allowance or Other Allowances..
Shashikanth.
From India, Bangalore
Use this method it may helps you.
Consider 45% as basic on CTC
Consider 40% (Non Metro) or 50% (metro) on Basic as HRA
Consider Rs.800/- p/month as Conveyance Allowance (Tax benefit)
Consider Rs.1250/- p/Month as medical Allowance (Tax benefit)
The balance you can consider as special Allowance or Other Allowances..
Shashikanth.
From India, Bangalore
Hi, The gratuity is calculated on basic amount and D.A.. So increase in % will attract contingent liability. G.Krishna Kumar
From India, Bangalore
From India, Bangalore
Hi,
When it comes to salary structure, Minimum Wages are also to be discussed and understood. Because non compliance or payment of salary below Minimum Wages is unlawful and can attract penalty to the employer.
Every state has different Minimum Wages and are revised after very six months which needs to be checked regularly.
So wehenver you design CTC structure of new joinees or on increment, promotion, transfer, one needs to first check whether it is as per Minimum Wages.
Regards,
Sumeet
From India, Mumbai
When it comes to salary structure, Minimum Wages are also to be discussed and understood. Because non compliance or payment of salary below Minimum Wages is unlawful and can attract penalty to the employer.
Every state has different Minimum Wages and are revised after very six months which needs to be checked regularly.
So wehenver you design CTC structure of new joinees or on increment, promotion, transfer, one needs to first check whether it is as per Minimum Wages.
Regards,
Sumeet
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary Break Up.xlsx
New Comart Salary Break up-Calculator.z ip