Dear Sir/Madam, I would like to know how to calculate the salary of an employee by using all aspects of the allowance & deductions. I have the xls sheet with formulas to calculate the salary but I need to know how & why these rules are used to calculate.
Please guide me for the same.
From India, Mumbai
Please guide me for the same.
From India, Mumbai
Hi Shalini,
Kindly go through the below link
Major Salary Components « hrmexpress
Thanks,
Bhakti
From India, Mumbai
148Kindly go through the below link
Major Salary Components « hrmexpress
Thanks,
Bhakti
From India, Mumbai
Hi Shalini,
Kindly go through the below link
Major Salary Components « hrmexpress
Thanks, Bhakti
From India, Mumbai
Kindly go through the below link
Major Salary Components « hrmexpress
Thanks, Bhakti
From India, Mumbai
please help me how to pay pf to the govt and esi also what is the procedure please guide me with further details of loan cuttings in payroll how will it be done
From India, Hyderabad
From India, Hyderabad
Dear Salini ji,
To answer to your query, I am trying it in simple way as under:
In salary sheet, there are main four components. They are:
i. Basic inputs such as rate p.d.or p.m., days payable etc.
ii. Earnings
iii. Deductions &
iv. Net payable.
Earnings means various components of salary worked out on the basis of basic inputs. Components of salary may be Basic, DA / Sp. Allw, HRA and other allowances you give as per the terms of employment. The allowances may be Conveyance, Education, Medical, Washing, shift, Attendance, Leave Travel etc. You can give any kind of allowance. You can nomenclate it by any name depending upon your policy or depending upon your decision. There is no law which compel you to give any allowances other than HRA in some states. In Maharashtra you are liable to pay min. 5 % if you have more than 50 employees.
I repeat, by any law you are not liable to pay any allowance other than HRA in some states. You are liable to pay by law only Basic and DA or consolated salary which should not be less than minimum rate as declared by the local authority. This Basic & DA or consolated salary attract HRA payment and PF deduction. To my view, it is wrong to split the minimum rate as declared by the local authority in to Basic, DA and various allowances or components and deduct PF on lesser amount thus arrived on such split up.
Total of all earning components i.e. Basic, DA, HRA and other allowances is a Gross.
ESI, local Tax on Employment, Labour Welfare Fund, Income Tax all those things attract on Gross. All those things are deductions from Gross which are statutory in nature and depends upon applicability. There may be other kind of deductions which are non statutory in nature.
From India, Mumbai
To answer to your query, I am trying it in simple way as under:
In salary sheet, there are main four components. They are:
i. Basic inputs such as rate p.d.or p.m., days payable etc.
ii. Earnings
iii. Deductions &
iv. Net payable.
Earnings means various components of salary worked out on the basis of basic inputs. Components of salary may be Basic, DA / Sp. Allw, HRA and other allowances you give as per the terms of employment. The allowances may be Conveyance, Education, Medical, Washing, shift, Attendance, Leave Travel etc. You can give any kind of allowance. You can nomenclate it by any name depending upon your policy or depending upon your decision. There is no law which compel you to give any allowances other than HRA in some states. In Maharashtra you are liable to pay min. 5 % if you have more than 50 employees.
I repeat, by any law you are not liable to pay any allowance other than HRA in some states. You are liable to pay by law only Basic and DA or consolated salary which should not be less than minimum rate as declared by the local authority. This Basic & DA or consolated salary attract HRA payment and PF deduction. To my view, it is wrong to split the minimum rate as declared by the local authority in to Basic, DA and various allowances or components and deduct PF on lesser amount thus arrived on such split up.
Total of all earning components i.e. Basic, DA, HRA and other allowances is a Gross.
ESI, local Tax on Employment, Labour Welfare Fund, Income Tax all those things attract on Gross. All those things are deductions from Gross which are statutory in nature and depends upon applicability. There may be other kind of deductions which are non statutory in nature.
From India, Mumbai
Dear Mrunal90,
With due respect to you Madam, I totally disagree with your reply to querist. I request you to kindly read my posting as above, in reply to querist which may be helpful in correcting yourself.
There is no compulsion to pay HRA at 50%, Education at 20% and conveyance at 20% as you said. There is no law which says that you have to pay Basic at 50% of the Gross.
However, you can pay such kind of allowances as mentioned by you but the Basic plus DA component should not be less than minimum rate as declared by local authority from time to time. On certain allowances, employee gets income tax benefit.
I do not mean to discourage you. On the contrary, I appreciate your response.
From India, Mumbai
With due respect to you Madam, I totally disagree with your reply to querist. I request you to kindly read my posting as above, in reply to querist which may be helpful in correcting yourself.
There is no compulsion to pay HRA at 50%, Education at 20% and conveyance at 20% as you said. There is no law which says that you have to pay Basic at 50% of the Gross.
However, you can pay such kind of allowances as mentioned by you but the Basic plus DA component should not be less than minimum rate as declared by local authority from time to time. On certain allowances, employee gets income tax benefit.
I do not mean to discourage you. On the contrary, I appreciate your response.
From India, Mumbai
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