Hi
I need to process payroll
Company provides
Basic
HRA
Conveyance
Medical
Can anyone guide me with how should be the salary structured?
Secondly what % of PF , PT , gratuity should be deducted? If anyone has a sample of the payroll system , it would be great.
Thanks
Aditi
From India, Mumbai
1I need to process payroll
Company provides
Basic
HRA
Conveyance
Medical
Can anyone guide me with how should be the salary structured?
Secondly what % of PF , PT , gratuity should be deducted? If anyone has a sample of the payroll system , it would be great.
Thanks
Aditi
From India, Mumbai
Dear Aditi,
There are few fundamental that you have to keep in mind:-
Basic should not be less than 35%
HRA:- generally half of Baic
Convyeance :- Any amount but upto 800p m is tax free
Medical now is it Allownace or reimbursement?
Allowance is taxable and reimbursement upto 1250pm taxfree
Dedutions:-
PF:- Pf is 12% of Basic .(employee contrution)
there is alos employers contributionof the same amount:-12%.some companys include this in the CTC and some just include employee contribution.So you need to cehck what is the amount offered to the employee at the time of joining.
PF is deducted only if Basic is less than euql to 6500p.m
ESI:-If the total gross salary of an employee is less than and equal to 1000p.m then ESI is deducted @ 1.75@ of gross salary(employee share) and 4.75%(employer share, again you need to check whether it is incldued in the CTC or not)
TAXes :- as per the law
From India, Calcutta
There are few fundamental that you have to keep in mind:-
Basic should not be less than 35%
HRA:- generally half of Baic
Convyeance :- Any amount but upto 800p m is tax free
Medical now is it Allownace or reimbursement?
Allowance is taxable and reimbursement upto 1250pm taxfree
Dedutions:-
PF:- Pf is 12% of Basic .(employee contrution)
there is alos employers contributionof the same amount:-12%.some companys include this in the CTC and some just include employee contribution.So you need to cehck what is the amount offered to the employee at the time of joining.
PF is deducted only if Basic is less than euql to 6500p.m
ESI:-If the total gross salary of an employee is less than and equal to 1000p.m then ESI is deducted @ 1.75@ of gross salary(employee share) and 4.75%(employer share, again you need to check whether it is incldued in the CTC or not)
TAXes :- as per the law
From India, Calcutta
Hi Aditi,
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
TA
Other Allowance
Mobile Reimbursement / Month
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.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
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
TA
Other Allowance
Mobile Reimbursement / Month
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.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
Hi Anupama , Please brief about PF, is it not deducted if basic is more than 6500/m. And if not ,what are the other deductions made. Regards, Pallavi
From India, Pune
From India, Pune
Hi..
PF is been deducted even after the Basic cross the ceiling of rupees 6500/-
But it is been done on the basis of the ceiling amount only.. ANd moreover it depends on the company policy also..
But one can remain a member of PF Fund even after his/her basic salary crosses the ceiling of rs. 6500/- Per month.
Regards,
Amit Seth.
From India, Ahmadabad
PF is been deducted even after the Basic cross the ceiling of rupees 6500/-
But it is been done on the basis of the ceiling amount only.. ANd moreover it depends on the company policy also..
But one can remain a member of PF Fund even after his/her basic salary crosses the ceiling of rs. 6500/- Per month.
Regards,
Amit Seth.
From India, Ahmadabad
Hi, Please let me know why Basic should not be less than 35%.Is there any obligation mentioned anywhere?? Regards, Rachna
From India, Hyderabad
From India, Hyderabad
Hi Madhumita,
Payroll is the salary processing system.
Payroll can be seen from two aspects. One is from HR side and other from commercial people side. The HR persons process the payroll by means of sending attendance details or better say LWP details and other complete details that an employee is going to get in a particular month.
And after receiving those details the commercial people start making entry into payroll software and can be said start salary processing.
Well while processing salary fro a particular month we the HR personals provide complete LWP (Leave without Pay) details to the commercial dept.
While calculating LWP, we prepare the attendance sheet with teh weekly offs. And apart from weekly offs we check how many days an employee is absent, out of which how many days he was on leave that we crosscheck with leave applications. If the particular employee has given the approved leave application form and that leave is been there in his account then we put him on leave.
But If the person has not submitted the leave application form or he doesn't have any leave in his balance then for that particular day that employee will be assumed absent, and we will deduct his salary for that day.
Similarly if there is any provision to provide one days extra salary for an specific day if the employee does come, then we calculate one day extra salary for those employees who were present on that day.
I hope now it will be very much clear to you.
Regards,
Amit Seth.
From India, Ahmadabad
Payroll is the salary processing system.
Payroll can be seen from two aspects. One is from HR side and other from commercial people side. The HR persons process the payroll by means of sending attendance details or better say LWP details and other complete details that an employee is going to get in a particular month.
And after receiving those details the commercial people start making entry into payroll software and can be said start salary processing.
Well while processing salary fro a particular month we the HR personals provide complete LWP (Leave without Pay) details to the commercial dept.
While calculating LWP, we prepare the attendance sheet with teh weekly offs. And apart from weekly offs we check how many days an employee is absent, out of which how many days he was on leave that we crosscheck with leave applications. If the particular employee has given the approved leave application form and that leave is been there in his account then we put him on leave.
But If the person has not submitted the leave application form or he doesn't have any leave in his balance then for that particular day that employee will be assumed absent, and we will deduct his salary for that day.
Similarly if there is any provision to provide one days extra salary for an specific day if the employee does come, then we calculate one day extra salary for those employees who were present on that day.
I hope now it will be very much clear to you.
Regards,
Amit Seth.
From India, Ahmadabad
Hi Aditi,
There are many Companies who does pay roll outsourcing work. So contact them they will do all End to End Pay roll for you.
I have eperienced those services, You can talk to TopSource people for the same, they do UK & Indian Payrolls. Please go through www.topsource.in or 020 30522966 / 30522967.
Regards
Kailash
From United Arab Emirates, Dubai
There are many Companies who does pay roll outsourcing work. So contact them they will do all End to End Pay roll for you.
I have eperienced those services, You can talk to TopSource people for the same, they do UK & Indian Payrolls. Please go through www.topsource.in or 020 30522966 / 30522967.
Regards
Kailash
From United Arab Emirates, Dubai
Dear All, ESIC contribution bucket is 15000/- If any one more than gross salary 15000/- he will out of bucket form ESIC The ESIC period would be change on 2 time in the year 1-Apr and 1-Oct
paytriangle.com and Free Payroll Usage is a site where I observed that they provide free payroll calculations online.
This is free so that small companies and go go ahead smartly and efficiently.
Also I observed that reports are in PDF.
From India, Delhi
This is free so that small companies and go go ahead smartly and efficiently.
Also I observed that reports are in PDF.
From India, Delhi
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Payroll Management System .pdf