Hi Friends,
I\'m working as a hr for a new company, have to start payroll but we dint have deductions as of now, so please let me know how should i calculate salaries please gimme reply...
With Regards,
Suma patro.
From India, Hyderabad
1I\'m working as a hr for a new company, have to start payroll but we dint have deductions as of now, so please let me know how should i calculate salaries please gimme reply...
With Regards,
Suma patro.
From India, Hyderabad
Dear Suma,
Each company having their own ways to calculate the Salary,there will be some fixed and some variable compnonets
Components of Salary Breakup
--> Basic Salary - The actual pay you receive for rendering services to the company. This is a taxable amount
--> Dearness allowance - A taxable amount, this is paid to compensate for the rising cost of living.
--> House rent allowance - 50% of salary (basic + DA) if residing in a metropolitan city, or else 40%
--> Conveyence allowance - Paid for daily commute expenses. Up to an amount of Rs 800 per month is exempt from tax.
--> Meal coupens
--> Telephone/Mobile bills
--> Medical allowance - Some companies offer medical care through health facilities for employees and their families. The cost of providing this benefit to the employee could also form part of CTC.
--> EPF - Employers contribute an equal 12% to the provident fund account.
--> Gratuity - Companies manage gratuity through a fund maintained by an insurance company.
--> Leave Travel Allowance - It is the cost of travel anywhere in India for employees on leave. Tax exemption if allowed twice in a block of four calendar years.
--> Insurance benefits
--> Fixed bonus - Paid on the basis of employee performance, either monthly or in most cases annually, it is a fully taxable amount.
-->Variable bonus - Complete bonus amount is paid only on 100% achievement of target, nevertheless it still is included as part of your CTC.
Regards,
Narayan
From India, Hyderabad
Each company having their own ways to calculate the Salary,there will be some fixed and some variable compnonets
Components of Salary Breakup
--> Basic Salary - The actual pay you receive for rendering services to the company. This is a taxable amount
--> Dearness allowance - A taxable amount, this is paid to compensate for the rising cost of living.
--> House rent allowance - 50% of salary (basic + DA) if residing in a metropolitan city, or else 40%
--> Conveyence allowance - Paid for daily commute expenses. Up to an amount of Rs 800 per month is exempt from tax.
--> Meal coupens
--> Telephone/Mobile bills
--> Medical allowance - Some companies offer medical care through health facilities for employees and their families. The cost of providing this benefit to the employee could also form part of CTC.
--> EPF - Employers contribute an equal 12% to the provident fund account.
--> Gratuity - Companies manage gratuity through a fund maintained by an insurance company.
--> Leave Travel Allowance - It is the cost of travel anywhere in India for employees on leave. Tax exemption if allowed twice in a block of four calendar years.
--> Insurance benefits
--> Fixed bonus - Paid on the basis of employee performance, either monthly or in most cases annually, it is a fully taxable amount.
-->Variable bonus - Complete bonus amount is paid only on 100% achievement of target, nevertheless it still is included as part of your CTC.
Regards,
Narayan
From India, Hyderabad
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Salary working format.xls