Hi Seema
The effort that has gone into making this sheet is commendable
A few nips and tucks reqrd here:
1)You have mentioned Basic @ 59.40%of Gross -In group A The gross amount is Rs 8500/- while basic amount is shown as Rs.4950/-.
Please confirm how you have arrived at this figure
Similarly for other groups.
2)What is WF in the liabilities segment
3)Is Dearness allowance considered alongside basic. and also what percentage of basic calculated as dearness allowance?
If so ,how have you incorporated that into the basic amount?
4)PF is 12%of basic alloted to employee- The cap of Rs.6500/- is not mandatory in case of employee and employer.
Please correct me if I am wrong
In event of super annuation and gratuity components being added :
gratuity would be 4.81% of basic
and super annuation would be 15% of basic
Again correct me IF I am wrong
Thanks
Ann
Awaiting your reply
From India
The effort that has gone into making this sheet is commendable
A few nips and tucks reqrd here:
1)You have mentioned Basic @ 59.40%of Gross -In group A The gross amount is Rs 8500/- while basic amount is shown as Rs.4950/-.
Please confirm how you have arrived at this figure
Similarly for other groups.
2)What is WF in the liabilities segment
3)Is Dearness allowance considered alongside basic. and also what percentage of basic calculated as dearness allowance?
If so ,how have you incorporated that into the basic amount?
4)PF is 12%of basic alloted to employee- The cap of Rs.6500/- is not mandatory in case of employee and employer.
Please correct me if I am wrong
In event of super annuation and gratuity components being added :
gratuity would be 4.81% of basic
and super annuation would be 15% of basic
Again correct me IF I am wrong
Thanks
Ann
Awaiting your reply
From India
Dear Seema,
Good Effort.
However, Please clarify on the Basic formula. Formula says 66% of the monthly gross whereas the title says 59.40. If it is 59.40 I think your company is creating a huge liability. What is your company policy on Leave encashments? just calculate the liability with the current structure of basic (@ 60%) it will be huge bill, ideally it should be 31% of the total CTC.
Conveyance incurs an FBT? correct me if I am wrong.
EA ?? what is that?
Bal variable, under what head r u recovering, is it legal? please clarify.
Recovering a salary without the employee's consent is an offence, please check this with you legal consultant.
Changes may be introduced, but it should not be to the dis-advantage of the employee either with regard to reduction in P.F. Contribution or with regard to reduction in their Take Home Pay.
FBT is @ 6.73% for Medical Reimbursements
6.73% for Car Maintenance
No FBT of Food Allowance like Sodex-ho, food coupons.
PT could be shown.
Statutory bonus can be shown as part of the CTC since this a liability which needs to be paid @ 8.33% or 3500.
Regards,
Ravindra
From India, Hyderabad
Good Effort.
However, Please clarify on the Basic formula. Formula says 66% of the monthly gross whereas the title says 59.40. If it is 59.40 I think your company is creating a huge liability. What is your company policy on Leave encashments? just calculate the liability with the current structure of basic (@ 60%) it will be huge bill, ideally it should be 31% of the total CTC.
Conveyance incurs an FBT? correct me if I am wrong.
EA ?? what is that?
Bal variable, under what head r u recovering, is it legal? please clarify.
Recovering a salary without the employee's consent is an offence, please check this with you legal consultant.
Changes may be introduced, but it should not be to the dis-advantage of the employee either with regard to reduction in P.F. Contribution or with regard to reduction in their Take Home Pay.
FBT is @ 6.73% for Medical Reimbursements
6.73% for Car Maintenance
No FBT of Food Allowance like Sodex-ho, food coupons.
PT could be shown.
Statutory bonus can be shown as part of the CTC since this a liability which needs to be paid @ 8.33% or 3500.
Regards,
Ravindra
From India, Hyderabad
Thanks a lot for the break up it has been really helpful...
I still have a query for which i the file does not provide me with an answer which would be as follows
Basic @ 59.40 of Gross : Rs.1,848.00
HRA @ 50% of basic : Rs.924.00
Conveyance : Rs.800.00
E.A : Rs.200.00
Others : Rs.28.00
Gross : Rs.3,800.00
Medical : Rs.-
Fuel Expenses : Rs.-
Entertainment : Rs.-
Reimbursements : Rs.-
Monthly Gross : Rs.3,800.00
P.F. : Rs.252.00
E.S.I. : Rs.180.50
WF : Rs.-
Ex-Gratia : Rs.-
Liabilities : Rs.432.50
CTC : Rs.4,232.50
P.F. : Rs.221.76
E.S.I. : Rs.66.50
bal. variable : Rs.184.80
Income Tax : Rs.-
Deductions : Rs.473.06
NET TAKE : Rs.3,326.94
is this break up as per the laws defined by the Minimum wage act
1I still have a query for which i the file does not provide me with an answer which would be as follows
Basic @ 59.40 of Gross : Rs.1,848.00
HRA @ 50% of basic : Rs.924.00
Conveyance : Rs.800.00
E.A : Rs.200.00
Others : Rs.28.00
Gross : Rs.3,800.00
Medical : Rs.-
Fuel Expenses : Rs.-
Entertainment : Rs.-
Reimbursements : Rs.-
Monthly Gross : Rs.3,800.00
P.F. : Rs.252.00
E.S.I. : Rs.180.50
WF : Rs.-
Ex-Gratia : Rs.-
Liabilities : Rs.432.50
CTC : Rs.4,232.50
P.F. : Rs.221.76
E.S.I. : Rs.66.50
bal. variable : Rs.184.80
Income Tax : Rs.-
Deductions : Rs.473.06
NET TAKE : Rs.3,326.94
is this break up as per the laws defined by the Minimum wage act
Dear The following aspects are missig. Re-design the file then it will be very useful. 1) Gratuty 2) Professional Tax 3) PF maximum limit Regards, Murali
Hi seema,
thanks a lot. And let me know the HR activities generally in a concern. I am a fresher working in private concern in chennai as HR. No any senior persons in my concern. Kindly send me the details.
thanks in advance
Regards,
santhoshini
thanks a lot. And let me know the HR activities generally in a concern. I am a fresher working in private concern in chennai as HR. No any senior persons in my concern. Kindly send me the details.
thanks in advance
Regards,
santhoshini
Dear Murali, Can you please assist me in Gratuity and Profession Tax. I am not having info. about that. Regards, Seema
From India, Delhi
From India, Delhi
Hi,
The salary structure differs from organisation to organisation, however certain components may be fixed depending upon various taxation, PF and other laws. We need to keep ourself updated and prepare a tailor made structure.
Also the structure may be modified as and when required to ensure that employees and employer get maximum benefits keeping the statutory compliances in mind.
Anyhow the present structure gives some basic idea, Thanks for sharing.
From India, Mumbai
The salary structure differs from organisation to organisation, however certain components may be fixed depending upon various taxation, PF and other laws. We need to keep ourself updated and prepare a tailor made structure.
Also the structure may be modified as and when required to ensure that employees and employer get maximum benefits keeping the statutory compliances in mind.
Anyhow the present structure gives some basic idea, Thanks for sharing.
From India, Mumbai
Dear HR Friends
This Salary break up in different slabs is very informative and useful.
I am facing one problem. Previously we have recovered PF contribution
for 60% of basic pay in the gross salary. But the PF authorities inspected
our organisation and instructed us to recover PF contribution for 85% of
basic pay in the gross salary. By this the management is contributing
more to the corporation.
I want to know, is there any law stating to take 85% for PF in the
gross salary. Moreover we have not made any pay structure sofar no
settlement arrived till now.
I request the seniors to clarify my doubt
alphonse:lol: :lol: :lol:
GTE
5th year of completion of manufacturing.
From India, Madras
This Salary break up in different slabs is very informative and useful.
I am facing one problem. Previously we have recovered PF contribution
for 60% of basic pay in the gross salary. But the PF authorities inspected
our organisation and instructed us to recover PF contribution for 85% of
basic pay in the gross salary. By this the management is contributing
more to the corporation.
I want to know, is there any law stating to take 85% for PF in the
gross salary. Moreover we have not made any pay structure sofar no
settlement arrived till now.
I request the seniors to clarify my doubt
alphonse:lol: :lol: :lol:
GTE
5th year of completion of manufacturing.
From India, Madras
hi seema,
it's magical . wonderful creation.
but could u plz. clarify me why P.F and ESI in case of employer (Liability) and employee (deduction) differs.
if would be of immensely useful to me.
good day and god bless
JayPee
From India, Delhi
it's magical . wonderful creation.
but could u plz. clarify me why P.F and ESI in case of employer (Liability) and employee (deduction) differs.
if would be of immensely useful to me.
good day and god bless
JayPee
From India, Delhi
Seema
Good Job
Basic can be at a percentage decided by the management, for e.g it could be at 50% or 60% too. Hence we can change the formula in the cell.
Also please add Tax deductions column while recruitment itself so that towards the end of the financial year, employee and employer work without tension.
Regards
Merlyne
Good Job
Basic can be at a percentage decided by the management, for e.g it could be at 50% or 60% too. Hence we can change the formula in the cell.
Also please add Tax deductions column while recruitment itself so that towards the end of the financial year, employee and employer work without tension.
Regards
Merlyne
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