Hi there! we are currently developing salary structure for our employees. i’m working in a poultry dressing plant. can anybody help us in structuring our salary?
From Philippines, Malilipot
From Philippines, Malilipot
Hi Elgie,
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Hope it must help you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
496The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.
Hope it must help you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
Hi Amit,
Can you explain me about the ESI percentage i.e you have shown 4.75% in the employer part in the CTC details that you have mentioned, and also one part of PF i.e 12% is mentioned. Need clarification on the remaining 1.75% of ESI and 12% of PF that is not mentioned in the CTC details posted by you.................
Regards
Amith R.
From India, Bangalore
Can you explain me about the ESI percentage i.e you have shown 4.75% in the employer part in the CTC details that you have mentioned, and also one part of PF i.e 12% is mentioned. Need clarification on the remaining 1.75% of ESI and 12% of PF that is not mentioned in the CTC details posted by you.................
Regards
Amith R.
From India, Bangalore
Hi Navroz,
Yes very true.. City Conveyance allowance of Rupees 825/- is exempted for Tax..
Dear Amith,
In CTC we include only the employer's part as employees contribution is already been included their gross salary.
Like 1.75% of gross salary is deducted from employees salary and contributed to ESI, moreover 12% of Basic salary of employee is deducted from his salary and deposited to PF...
So we include only employer's contribution to the CTC..
Hope your query regarding tehs ame have must be cleared..
Regards,
Amit Seth.
From India, Ahmadabad
Yes very true.. City Conveyance allowance of Rupees 825/- is exempted for Tax..
Dear Amith,
In CTC we include only the employer's part as employees contribution is already been included their gross salary.
Like 1.75% of gross salary is deducted from employees salary and contributed to ESI, moreover 12% of Basic salary of employee is deducted from his salary and deposited to PF...
So we include only employer's contribution to the CTC..
Hope your query regarding tehs ame have must be cleared..
Regards,
Amit Seth.
From India, Ahmadabad
Dear Amit,
Thanks a lot it is very much clear, but would like to get clarification that this ESI and PF getting deducted from the gross will be the take home i.e the net salary. Correct me if i am wrong..............
Regards
Amith R.
From India, Bangalore
Thanks a lot it is very much clear, but would like to get clarification that this ESI and PF getting deducted from the gross will be the take home i.e the net salary. Correct me if i am wrong..............
Regards
Amith R.
From India, Bangalore
Dear Amith,
See if one's basic is 5000/- rupees.. and his gross salary is 9000/- rupees..
Then his ESI contribution would be 1.75% of 9000 and PF contribution would be 12% of 5000/-
And Net salary would be after deduction of both the contribution amount from his gross that is 9000..
So net salary = Gross salary - (ESI + PF contribution)
Hope now it must been clear with you..
Regards,
Amit Seth.
From India, Ahmadabad
See if one's basic is 5000/- rupees.. and his gross salary is 9000/- rupees..
Then his ESI contribution would be 1.75% of 9000 and PF contribution would be 12% of 5000/-
And Net salary would be after deduction of both the contribution amount from his gross that is 9000..
So net salary = Gross salary - (ESI + PF contribution)
Hope now it must been clear with you..
Regards,
Amit Seth.
From India, Ahmadabad
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