HI TO ALL OF YOU,
Wishing you Happy Diwali
Hi am Payal,working as an HR person, am bit confused that whether can we consider LTA, House Allowance, Entertainment Allow. mobile reimbursement , petrol reim. etc as an Inhand amount/ salary. Because as per my knowledge it is a part of your CTC, but still i want your help.
Thanks
From India, Calcutta
15Wishing you Happy Diwali
Hi am Payal,working as an HR person, am bit confused that whether can we consider LTA, House Allowance, Entertainment Allow. mobile reimbursement , petrol reim. etc as an Inhand amount/ salary. Because as per my knowledge it is a part of your CTC, but still i want your help.
Thanks
From India, Calcutta
hi,
According to my knowledge Entertainment Allow. mobile reimbursement , petrol reim. etc can't be considered as salary. They are a part of the CTC. they are considered as incentives because they vary from month to month.
If I am wrong please correct me.
Wish you happy DIWALI.
regards,
santhosh.p
From India, Hyderabad
According to my knowledge Entertainment Allow. mobile reimbursement , petrol reim. etc can't be considered as salary. They are a part of the CTC. they are considered as incentives because they vary from month to month.
If I am wrong please correct me.
Wish you happy DIWALI.
regards,
santhosh.p
From India, Hyderabad
Yes Payal.. These all are part of CTC... because CTC includes all those hidden cost also which are going to be spend over an employee in a year.. Regards, Amit Seth.
From India, Ahmadabad
From India, Ahmadabad
Thanks Amit,
But my company is asking me to negoiate with the new joinees taking all these allowance as an in hand and its really very difficult as am not only agreeing at this point so pls guide wat to do further
Regards,
Payal
From India, Calcutta
But my company is asking me to negoiate with the new joinees taking all these allowance as an in hand and its really very difficult as am not only agreeing at this point so pls guide wat to do further
Regards,
Payal
From India, Calcutta
Hi Payal,
LTA can't be paid in cash.. as it is paid only at the end of the year..
Moreover HRA you may add in CTC and it can be paid every month,
Entertainment allowance that you may fix and paid but only after getting the bills of the same..
Petrol reimbursement also can't be paid in advance.. but you may fix a structure that it will be paid but only after presenting bills of the same..
Moreover regarding mobile reimbursement also you may fix a ceiling amount that upto this much amount company will bear the charges.. beyond that will be deducted from the salary..
Hope it help you to frame the same..
Regards,
Amit Seth.
From India, Ahmadabad
LTA can't be paid in cash.. as it is paid only at the end of the year..
Moreover HRA you may add in CTC and it can be paid every month,
Entertainment allowance that you may fix and paid but only after getting the bills of the same..
Petrol reimbursement also can't be paid in advance.. but you may fix a structure that it will be paid but only after presenting bills of the same..
Moreover regarding mobile reimbursement also you may fix a ceiling amount that upto this much amount company will bear the charges.. beyond that will be deducted from the salary..
Hope it help you to frame the same..
Regards,
Amit Seth.
From India, Ahmadabad
I am of the opinion that all except employer's contribition of the PF is carry home, since we actually carry it home, even if periodically.
Of course reimbursement of Mobile/ Telephone expenses and Conveyance are reimbursed being the amount reimbursed after the same is utilised for the Company work. As such these should not form part of the CTC, unless are given without actually expending and are part of the salary bifurcation for saving on the taxes.
Please correct me with logic and rationale.
Regards,
Pradeep Bajaj
From India, Delhi
Of course reimbursement of Mobile/ Telephone expenses and Conveyance are reimbursed being the amount reimbursed after the same is utilised for the Company work. As such these should not form part of the CTC, unless are given without actually expending and are part of the salary bifurcation for saving on the taxes.
Please correct me with logic and rationale.
Regards,
Pradeep Bajaj
From India, Delhi
Dear All, Can any one help me that whether these LTA, Household Allow, Entertainment allow, Petrol , Vehicle maintenace are calculated on some specific % or it totally depends on Company policy.
From India, Calcutta
From India, Calcutta
It all is as per the Company policies, nevertheless there is a need for rationale, and all should look a bit proporational.
Generally ranges between a month's salary in a year and 15%.
Various factors to be considered are: -
Total of the allowances and Basic could be a ration of 60-40, at the minimum, 50:50,
The No of allowances the Company wants to give, on this factor depends the %age of the Basic, these allowances could be.
With all the alloowances already coming under the provisions of the IT and introduction of FBT, you need to coordianate with your Finance personnel to come to a viable break up of the salaries.
Nevertheless, should you follow the above guidelines, you are likely to get many a workable solutions.
Regards,
Pradeep Bajaj
From India, Delhi
Generally ranges between a month's salary in a year and 15%.
Various factors to be considered are: -
Total of the allowances and Basic could be a ration of 60-40, at the minimum, 50:50,
The No of allowances the Company wants to give, on this factor depends the %age of the Basic, these allowances could be.
With all the alloowances already coming under the provisions of the IT and introduction of FBT, you need to coordianate with your Finance personnel to come to a viable break up of the salaries.
Nevertheless, should you follow the above guidelines, you are likely to get many a workable solutions.
Regards,
Pradeep Bajaj
From India, Delhi
Dear Payal,
I do agree with Mr.Santu,
They are the part in CTC but not in Salary. We can even call them as Fringe Benefits given to an employee. Few Ex. of Fringe Benefits are as below:
(a) entertainment;
(b) festival celebrations;
(c) gifts;
(d) use of club facilities
(e) maintenance of guest house;
(f) conference;
(g) employee welfare;
(h) use of health club, sports and similar facilities;
(i) sales promotion, including publicity;
(j) conveyance, tour and travel, including foreign travel expenses
Truly Yours,
Kumar.H.P
From Hong Kong
I do agree with Mr.Santu,
They are the part in CTC but not in Salary. We can even call them as Fringe Benefits given to an employee. Few Ex. of Fringe Benefits are as below:
(a) entertainment;
(b) festival celebrations;
(c) gifts;
(d) use of club facilities
(e) maintenance of guest house;
(f) conference;
(g) employee welfare;
(h) use of health club, sports and similar facilities;
(i) sales promotion, including publicity;
(j) conveyance, tour and travel, including foreign travel expenses
Truly Yours,
Kumar.H.P
From Hong Kong
Hi Payal,
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 may give some input in your bench marking.. to some extent.
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
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 may give some input in your bench marking.. to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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HRA – House Rent Allowance.pdf