Dear all,
Hi, dear. Where I am working, there has been no salary breakup for the last 2 years. They are calculating the salary based on the basic salary. For example, if the basic salary is 7000/-, then they calculate ESIC and PF based on this basic salary, assuming it as the gross salary. However, starting from the 1st of April 2009, the management has decided that the salary should be bifurcated into Basic, HR, Conveyance, etc. We don't have any policy regarding employee remuneration.
Kindly let me know how to create the salary breakup for employees. What is the percentage of Basic, HR, Conveyance, etc. (all parts of the salary) as per the act? How should we create the salary breakup if we don't have any policy regarding that? Kindly provide detailed information about the salary breakup.
Thanks,
Nirmala
From India, Lucknow
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12Hi, dear. Where I am working, there has been no salary breakup for the last 2 years. They are calculating the salary based on the basic salary. For example, if the basic salary is 7000/-, then they calculate ESIC and PF based on this basic salary, assuming it as the gross salary. However, starting from the 1st of April 2009, the management has decided that the salary should be bifurcated into Basic, HR, Conveyance, etc. We don't have any policy regarding employee remuneration.
Kindly let me know how to create the salary breakup for employees. What is the percentage of Basic, HR, Conveyance, etc. (all parts of the salary) as per the act? How should we create the salary breakup if we don't have any policy regarding that? Kindly provide detailed information about the salary breakup.
Thanks,
Nirmala
From India, Lucknow
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Dear,
Salary is bifurcated on the basis of the employee's gross/CTC salary, and the basic assumption is that no basic salary is reduced.
For more information, you can directly contact me on my mobile.
Regards,
Yogendra Raj Singh
9214000855
From United States, Plymouth
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Salary is bifurcated on the basis of the employee's gross/CTC salary, and the basic assumption is that no basic salary is reduced.
For more information, you can directly contact me on my mobile.
Regards,
Yogendra Raj Singh
9214000855
From United States, Plymouth
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Hi Nirmala, pls find the attachment calculation of salary with esi, hra, conveyance etc fyi Hope this will help you.
From India, Delhi
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From India, Delhi
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Kindly le me know of all percentage of slalary part.means convn,medicla other allowance etc of all part of salary incliding CTC
From India, Lucknow
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From India, Lucknow
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Dear Nirmala,
It varies from organization to organization. Generally, most organizations keep the basic salary at a low rate. For example, if your CTC is 100 Rs., then you can bifurcate it as below:
- Basic+DA: 40 to 50 percent
- HRA: differs based on the grade (you can make it 15 - 20 percent of Basic)
- CCA: It would be better if it does not exceed 1000 Rs.
- PF: 12% of Basic+DA or Rs 6500/-, whichever is less; according to the employer's convenience
- ESI: Should be calculated on Gross Salary (4.75% from Employer & 1.75% from Employee)
You can adjust the remaining amount in terms of conveyance or other allowances. Hope this is clear.
For more doubts, reach me at phaniacp@gmail.com.
Regards,
Phani Medavarapu
From India, Warangal
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It varies from organization to organization. Generally, most organizations keep the basic salary at a low rate. For example, if your CTC is 100 Rs., then you can bifurcate it as below:
- Basic+DA: 40 to 50 percent
- HRA: differs based on the grade (you can make it 15 - 20 percent of Basic)
- CCA: It would be better if it does not exceed 1000 Rs.
- PF: 12% of Basic+DA or Rs 6500/-, whichever is less; according to the employer's convenience
- ESI: Should be calculated on Gross Salary (4.75% from Employer & 1.75% from Employee)
You can adjust the remaining amount in terms of conveyance or other allowances. Hope this is clear.
For more doubts, reach me at phaniacp@gmail.com.
Regards,
Phani Medavarapu
From India, Warangal
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Dear All Cite Friends, Herewith I am attaching HR Manual. Please check and give your feed back. Thanking you Waiting for lot of remarks. Debajit Roy
From India, Mumbai
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From India, Mumbai
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There is no fixed percentage of the Basic component. However, for the purpose of uniformity, you can keep the Basic component as a fixed percentage of the total CTC. For example:
- Basic: 40% of CTC
- HRA: 50% of Basic for metros (40% of Basic for non-metros)
- Transport Allowance: Rs 800 per month (as anything more than this is taxable)
- PF: 12% of Basic component
- Special Allowance: CTC - (Basic + HRA + Transport + PF)
Hope this information helps!
From India, Gurgaon
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- Basic: 40% of CTC
- HRA: 50% of Basic for metros (40% of Basic for non-metros)
- Transport Allowance: Rs 800 per month (as anything more than this is taxable)
- PF: 12% of Basic component
- Special Allowance: CTC - (Basic + HRA + Transport + PF)
Hope this information helps!
From India, Gurgaon
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Dear Nirmala,
You cannot break up salary that is in basic or consolidated form as this will affect the benefits of the employees. Salary should be as per the terms & conditions of appointment. If the employees are covered under the Industrial Disputes Act, 1947, then you have to serve a notice of change under section 9A of this Act, giving a 21-day notice; otherwise, the consent of employees is required. If you make changes at your level, it will constitute a breach of contract.
Opinion submitted as requested.
Regards,
R.N. Khola
Skylark Associates, Gurgaon
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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You cannot break up salary that is in basic or consolidated form as this will affect the benefits of the employees. Salary should be as per the terms & conditions of appointment. If the employees are covered under the Industrial Disputes Act, 1947, then you have to serve a notice of change under section 9A of this Act, giving a 21-day notice; otherwise, the consent of employees is required. If you make changes at your level, it will constitute a breach of contract.
Opinion submitted as requested.
Regards,
R.N. Khola
Skylark Associates, Gurgaon
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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Dear Nirmala,
As per your query, you would like to know the salary break procedure. Please find the same as under:
Basic Salary: 50% of Gross Salary of the month
HR: 50%-60% of Basic salary of the month
Conveyance: Rs. 800 only
The rest is based on the eligibility of the employee mentioned in his/her Appointment letter and Compensation Structure.
I hope it will help you to understand the same.
Regards,
From India, Mumbai
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As per your query, you would like to know the salary break procedure. Please find the same as under:
Basic Salary: 50% of Gross Salary of the month
HR: 50%-60% of Basic salary of the month
Conveyance: Rs. 800 only
The rest is based on the eligibility of the employee mentioned in his/her Appointment letter and Compensation Structure.
I hope it will help you to understand the same.
Regards,
From India, Mumbai
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Dear Nirmala,
The current basic salary cannot be reduced for any employee, as your case is different since you are providing the total salary and calculating other benefits based on the total salary. In that case, if all employees agree, then you can bifurcate.
Jai Bakshi
From India, Delhi
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The current basic salary cannot be reduced for any employee, as your case is different since you are providing the total salary and calculating other benefits based on the total salary. In that case, if all employees agree, then you can bifurcate.
Jai Bakshi
From India, Delhi
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