Hi Friends,
After the budget 2006, how can we divide salary componets while considering both FBT liabilites on employer & IT on employee. Can
anybody help me the % of componets to be divded from gross salary.
BP, DA, HRA, Conveyence, EA, TA...etc.
Best Regards,
Ramesh kannan G
From India, Coimbatore
After the budget 2006, how can we divide salary componets while considering both FBT liabilites on employer & IT on employee. Can
anybody help me the % of componets to be divded from gross salary.
BP, DA, HRA, Conveyence, EA, TA...etc.
Best Regards,
Ramesh kannan G
From India, Coimbatore
dear friend,
there is no great impact from the budget 2006 point of view.
generally speaking the compensation structure can be modelled as follows:
assuming that the CTC = 1000, the following break-up may be considered
* Basic can be between 33% to 40% of the CTC.
* consequent effect on retrials.
* the rest can be part of a cafeteria/flexible benefit, where in you may
have the following components:
- HRA upto 100% of basic salary
- Medical Reimbursement @ Rs. 15,000/- p.a. - please note this will
have FBT implication
- LTA limited of 5-10% of CTC - you can avoid this also as it has FBT
implication
* variable should be within the CTC @ 11-15% of the annual cost.
hope this is of some use.
regards,
mxsingh
there is no great impact from the budget 2006 point of view.
generally speaking the compensation structure can be modelled as follows:
assuming that the CTC = 1000, the following break-up may be considered
* Basic can be between 33% to 40% of the CTC.
* consequent effect on retrials.
* the rest can be part of a cafeteria/flexible benefit, where in you may
have the following components:
- HRA upto 100% of basic salary
- Medical Reimbursement @ Rs. 15,000/- p.a. - please note this will
have FBT implication
- LTA limited of 5-10% of CTC - you can avoid this also as it has FBT
implication
* variable should be within the CTC @ 11-15% of the annual cost.
hope this is of some use.
regards,
mxsingh
Please it will be helpful if you can give the full words for these acronyms:FBT, CTC, HRA, LTA, BP, DA, EA, TA...etc
From United Kingdom
From United Kingdom
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx