Dear All,
We are a small firms having 35 - 50 employees. Here till date we were following the salary structure like this.
Basic - Random more of the employees are getting 6500 as basic
HRA - NIL
Conv - 800 pm
Allow - Balance Amt.(Gross - Basic-HRA-Conveyance-Allowance)
Gross - XYZ amt.
PF - 12%
PT - As per law
TDS - TDS as per law on Gross Salary
Net - ABC AMT.
I recently joined and after going throgh I made some points which I would like to share with you.
1. Basic is Random and close to ceiling limit of PF. I chaned it to 30% to 40%
2. HRA should be 30 - 40 % fo Basic
3. Allownace shouyld not be a balance amt.
4 TDS should not be charged on Gross PF and PT should be deducted and then TDS should be calculated.
As I know that the none of the amt should be more than Basic in the salary sturcture.
I want to reframe this salary format I need your help in that. I had never done the payroll function before. As this is one of the new challenges of my job. seeking help from your side.
From India, Mumbai
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7We are a small firms having 35 - 50 employees. Here till date we were following the salary structure like this.
Basic - Random more of the employees are getting 6500 as basic
HRA - NIL
Conv - 800 pm
Allow - Balance Amt.(Gross - Basic-HRA-Conveyance-Allowance)
Gross - XYZ amt.
PF - 12%
PT - As per law
TDS - TDS as per law on Gross Salary
Net - ABC AMT.
I recently joined and after going throgh I made some points which I would like to share with you.
1. Basic is Random and close to ceiling limit of PF. I chaned it to 30% to 40%
2. HRA should be 30 - 40 % fo Basic
3. Allownace shouyld not be a balance amt.
4 TDS should not be charged on Gross PF and PT should be deducted and then TDS should be calculated.
As I know that the none of the amt should be more than Basic in the salary sturcture.
I want to reframe this salary format I need your help in that. I had never done the payroll function before. As this is one of the new challenges of my job. seeking help from your side.
From India, Mumbai
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Hi, Herewith posting the CTC breakup excel. Hope it will help to you. The percentage of each and every component will be the company dependent one. Regards, Ashok.
From India, Madras
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From India, Madras
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I will like to know how arrive the CTC for 6.5 lacs for an employee
From India, Madras
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From India, Madras
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(Fact Checked)-The method to arrive at CTC (Cost to Company) for an employee is by considering the total of all direct and indirect expenses incurred by the company for that employee. It includes salary components like Basic, HRA, Conveyance, Special Allowance, PF contributions, Gratuity, Bonus, Medical Insurance, etc. Additionally, employer's contributions to PF, ESI, and any other benefits provided should be included in the CTC calculation. Ensure compliance with all legal requirements and maintain transparency in communicating the CTC to employees. (1 Acknowledge point)
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Excel Payroll Administration. Xls
CiteHR.AI
(Fact Check Failed/Partial)-The user's reply does not address the specific amendments needed in the CTC breakup based on the original post. The salary components and percentages require adjustment according to labor laws.