Hi to all
i m going to join a new company in next week, in job offer letter they told me to set pay structure.so can any one help me to find the best structure. my ctc is 18333 p m
i will be very thankfull to U
thanx
with regards
ram
From India, Ahmadabad
1i m going to join a new company in next week, in job offer letter they told me to set pay structure.so can any one help me to find the best structure. my ctc is 18333 p m
i will be very thankfull to U
thanx
with regards
ram
From India, Ahmadabad
hi,
can anyone guide me on how to create a pay struture for the employees of my company?and an eg of a pay structure.pls its urgent as im assigned to do this work at the earliest.hope some one will help me.
rgds,
rekha
From India, Mumbai
can anyone guide me on how to create a pay struture for the employees of my company?and an eg of a pay structure.pls its urgent as im assigned to do this work at the earliest.hope some one will help me.
rgds,
rekha
From India, Mumbai
Hi Rekha
You can Design the salary structure as here under :
PART 1 (Salary Sheet) per month
1. Basic 40% (of gross sal.)
2. HRA 40% or 50% of basic salary
3. Conv. All 800(minimum) as it is tax free
4. Education All. 200
5. Washing All. 300
6. Special All. variable as per salary
There are other allowances like Heat and Dust Allowance, Attendance Allowance, Night Shift Allowance,City Compensatory Allowance etc.
PART II (Reimbursement)
1. Medical Reimbursement Rs. 1250/- p.m.
2. Office Wear Reimbursement Rs. 2500/- p.m.
3. LTA as per block years i.e. 4 Two months Basic Salary
4. Food Coupons 15600 + service tax Per annum
5. Gift Coupons 5000 + service tax Per annum
6. Entertainment Reimb. for Sr. Mgt.
PART III (Employer Share) part of ctc
1. P.F. 13.61%
2. ESI 4.75% (for esi covered employees)
3. Bonus as per rules
You should consult with the accounts department before finalise the reimburesement structure for necessary arrangements and for more tax benefits by reimbursement.
Best Regards,
Rajesh Sharma
From India
You can Design the salary structure as here under :
PART 1 (Salary Sheet) per month
1. Basic 40% (of gross sal.)
2. HRA 40% or 50% of basic salary
3. Conv. All 800(minimum) as it is tax free
4. Education All. 200
5. Washing All. 300
6. Special All. variable as per salary
There are other allowances like Heat and Dust Allowance, Attendance Allowance, Night Shift Allowance,City Compensatory Allowance etc.
PART II (Reimbursement)
1. Medical Reimbursement Rs. 1250/- p.m.
2. Office Wear Reimbursement Rs. 2500/- p.m.
3. LTA as per block years i.e. 4 Two months Basic Salary
4. Food Coupons 15600 + service tax Per annum
5. Gift Coupons 5000 + service tax Per annum
6. Entertainment Reimb. for Sr. Mgt.
PART III (Employer Share) part of ctc
1. P.F. 13.61%
2. ESI 4.75% (for esi covered employees)
3. Bonus as per rules
You should consult with the accounts department before finalise the reimburesement structure for necessary arrangements and for more tax benefits by reimbursement.
Best Regards,
Rajesh Sharma
From India
Hi Rekha,
Would like to thank Rajesh for his inputs..
Just would recommend few changes incase you haven't discussed with accounts deptt to finalise the structure yet..
1 to 4 is perfectly fine..avoid 5 & 6 as it would be taxable..
Point 2 would be taxable..
Point 6 would attract Fringe Benefit Tax on the part of the company and therefore just check the comfort level on their part..
Rajesh..hope you are in consonant with the above points..please share your inputs..
Thanks & best Wishes,
Rajat
Rest is all fine..
From India, Pune
Would like to thank Rajesh for his inputs..
Just would recommend few changes incase you haven't discussed with accounts deptt to finalise the structure yet..
1 to 4 is perfectly fine..avoid 5 & 6 as it would be taxable..
Point 2 would be taxable..
Point 6 would attract Fringe Benefit Tax on the part of the company and therefore just check the comfort level on their part..
Rajesh..hope you are in consonant with the above points..please share your inputs..
Thanks & best Wishes,
Rajat
Rest is all fine..
From India, Pune
Hi Rajat
Thank You for comments
Although Washing Allowance is taxable but the ESI is not applicable on the Washing Allowance.
In case of Special Allowance, it can be variable to adjust the salary.
Most of the companies put their basic between 40% to 50% becuase the higher basic increase the liabilities on the part of Employer, so it is advisable to put the Basic Salary between 40% to 50% and other in allowances.
In case of Office Wear Reimburesement is exempted from Tax and the items under this head are as follows i) Attire ii) Ties iii) Shoes iv)Socks v) Tailoring Charges.
For more clarity pl. go through above :
Section 10(14)(i) of the Act allows an exemption in respect of any special benefits or allowances granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit as may be prescribed to the extent to which such expenses are actually incurred for that purpose. Rule 2BB(1) prescribes the following allowances:
(a) any allowance granted to meet the cost of travel on tour or on transfer;
(b) any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty;
(c) any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit: Provided that free conveyance is not provided by the employer;
(d) any allowance granted to meet the expenditure incurred on a helper where such helper is engaged for the performance of the duties of an office or employment of profit;
(e) any allowance granted for encouraging the academic, research and training pursuits in educational and research institutions;
(f) any allowance granted to meet the expenditure incurred on the purchase or maintenance of uniform for wear during the performance of the duties of an office or employment of profit.
It can, therefore, be seen that under clause (c) allowance given for conveyance will be exempt provided free conveyance is not provided to the employee, under clause (f) uniform allowance would be exempt while the allowance for professional development will not be eligible for any exemption. In any case it must be noted that even the conveyance and uniform allowance will be exempt only to the extent to what is actually spent.
Regards
Rajesh Sharma
From India
Thank You for comments
Although Washing Allowance is taxable but the ESI is not applicable on the Washing Allowance.
In case of Special Allowance, it can be variable to adjust the salary.
Most of the companies put their basic between 40% to 50% becuase the higher basic increase the liabilities on the part of Employer, so it is advisable to put the Basic Salary between 40% to 50% and other in allowances.
In case of Office Wear Reimburesement is exempted from Tax and the items under this head are as follows i) Attire ii) Ties iii) Shoes iv)Socks v) Tailoring Charges.
For more clarity pl. go through above :
Section 10(14)(i) of the Act allows an exemption in respect of any special benefits or allowances granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit as may be prescribed to the extent to which such expenses are actually incurred for that purpose. Rule 2BB(1) prescribes the following allowances:
(a) any allowance granted to meet the cost of travel on tour or on transfer;
(b) any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty;
(c) any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit: Provided that free conveyance is not provided by the employer;
(d) any allowance granted to meet the expenditure incurred on a helper where such helper is engaged for the performance of the duties of an office or employment of profit;
(e) any allowance granted for encouraging the academic, research and training pursuits in educational and research institutions;
(f) any allowance granted to meet the expenditure incurred on the purchase or maintenance of uniform for wear during the performance of the duties of an office or employment of profit.
It can, therefore, be seen that under clause (c) allowance given for conveyance will be exempt provided free conveyance is not provided to the employee, under clause (f) uniform allowance would be exempt while the allowance for professional development will not be eligible for any exemption. In any case it must be noted that even the conveyance and uniform allowance will be exempt only to the extent to what is actually spent.
Regards
Rajesh Sharma
From India
Iam working in a private concern in Chennai and Iam the HR executive here. I want to know the Pay structure which would payable in Tamilnadu. What would be the percentage of basic in gross & HRA in gross & Conveyance allowance in gross?
What is the necessary allowances in the paystructure?
And also whether the special allowance covered under PF Rules?
From India, Madras
What is the necessary allowances in the paystructure?
And also whether the special allowance covered under PF Rules?
From India, Madras
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