Hi all,
I'm working as an HR professional at an IT company. I've been tasked with reworking the salary structure so that we can follow a standard pattern for all employees.
I would like to know the following:
1. Different salary components.
2. If the basic salary is fixed at 30% of the total salary, how will it affect gratuity calculations?
3. Should bonuses be considered part of the salary?
Please provide your suggestions as I would like to complete this task at the earliest.
Thanks in advance.
Hrim
From India, Bangalore
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I'm working as an HR professional at an IT company. I've been tasked with reworking the salary structure so that we can follow a standard pattern for all employees.
I would like to know the following:
1. Different salary components.
2. If the basic salary is fixed at 30% of the total salary, how will it affect gratuity calculations?
3. Should bonuses be considered part of the salary?
Please provide your suggestions as I would like to complete this task at the earliest.
Thanks in advance.
Hrim
From India, Bangalore
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Hi,
The salary structure varies from company to company based on their Compensation & Benefits policy. Some of the basic pay heads used in the salary structure are:
1) Basic - 35% - 50% of Gross
2) HRA - 40% of Basic for Non-metro & 50% of Basic for Metro
3) Con - Max Rs. 800 per month, which is a maximum of Rs. 9600 per year
4) Medical Reim - Max Rs. 1250 per month, which can be a maximum of Rs. 15000 per year
5) Spl Allow - The balance of Gross will be provided as Special Allowance
Statutory:
1) PF
Employee Contribution - 12% on Basic
Employer Contribution - 13.61% on Basic
2) ESI - Applicable to employees whose Gross Salary is less than or equal to Rs. 15000
Employee Contribution - 1.75% on Gross
Employer Contribution - 4.75% on Gross
PT - It varies from state to state and is calculated based on the Gross salary of the employee
Net Salary = Gross - PF (Employee Cont) - ESI (Employee Cont) - PT
CTC = Gross + PF (Employer Cont) - ESI (Employer Cont)
Apart from this, Gratuity, Statutory Bonus, LTA, performance bonus, etc., are also used as part of the salary structure.
I hope this helps. Let me know if you need further clarification or assistance.
From India, Madras
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8The salary structure varies from company to company based on their Compensation & Benefits policy. Some of the basic pay heads used in the salary structure are:
1) Basic - 35% - 50% of Gross
2) HRA - 40% of Basic for Non-metro & 50% of Basic for Metro
3) Con - Max Rs. 800 per month, which is a maximum of Rs. 9600 per year
4) Medical Reim - Max Rs. 1250 per month, which can be a maximum of Rs. 15000 per year
5) Spl Allow - The balance of Gross will be provided as Special Allowance
Statutory:
1) PF
Employee Contribution - 12% on Basic
Employer Contribution - 13.61% on Basic
2) ESI - Applicable to employees whose Gross Salary is less than or equal to Rs. 15000
Employee Contribution - 1.75% on Gross
Employer Contribution - 4.75% on Gross
PT - It varies from state to state and is calculated based on the Gross salary of the employee
Net Salary = Gross - PF (Employee Cont) - ESI (Employee Cont) - PT
CTC = Gross + PF (Employer Cont) - ESI (Employer Cont)
Apart from this, Gratuity, Statutory Bonus, LTA, performance bonus, etc., are also used as part of the salary structure.
I hope this helps. Let me know if you need further clarification or assistance.
From India, Madras
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Keeping in mind the order of the Provident Fund Appellate Authority 2001, the suggested structure is as follows:
For example, anyone whose gross salary is ₹10,000 per month. The minimum wages in Delhi for this category are ₹7,020. The suggested salary structure is as follows:
- 80% of ₹7,020 as basic salary
- 25% of the basic salary as House Rent Allowance (HRA)
- The remaining amount can be allocated for Conveyance and Professional Allowance.
This proposed structure aims to provide a balanced approach.
Regards,
Sushil Kumar
From India, Bangalore
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For example, anyone whose gross salary is ₹10,000 per month. The minimum wages in Delhi for this category are ₹7,020. The suggested salary structure is as follows:
- 80% of ₹7,020 as basic salary
- 25% of the basic salary as House Rent Allowance (HRA)
- The remaining amount can be allocated for Conveyance and Professional Allowance.
This proposed structure aims to provide a balanced approach.
Regards,
Sushil Kumar
From India, Bangalore
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Hi all,
My name is Roshan Lal, an H.R. Executive from Bangalore. I am looking to change my job in Bangalore only. I have good knowledge in payroll with more than 4 years of experience. If there are any openings, please let me know.
Dear all, please help me. My email id is roshanjeet@rediffmail.com.
Thank you.
From India, Bangalore
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My name is Roshan Lal, an H.R. Executive from Bangalore. I am looking to change my job in Bangalore only. I have good knowledge in payroll with more than 4 years of experience. If there are any openings, please let me know.
Dear all, please help me. My email id is roshanjeet@rediffmail.com.
Thank you.
From India, Bangalore
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Earnings
Basic Salary: 50% of the gross
HRA: 40% of the Basic
Conv. Allowance: Rs. 800/- P.M.
Medical Allowance: Rs. 1250/- P.M.
Balance you can allocate to Special Allowance
Deductions
P.F. Employees' contribution at 12% on basic
E.S.I. Employees' Contribution at 1.75% on Gross
P.T. depends on slab and varies from state to state.
TDS on Salary
Net Salary Payable
Net Salary = Earnings (-) Deductions.
From India, Bangalore
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Basic Salary: 50% of the gross
HRA: 40% of the Basic
Conv. Allowance: Rs. 800/- P.M.
Medical Allowance: Rs. 1250/- P.M.
Balance you can allocate to Special Allowance
Deductions
P.F. Employees' contribution at 12% on basic
E.S.I. Employees' Contribution at 1.75% on Gross
P.T. depends on slab and varies from state to state.
TDS on Salary
Net Salary Payable
Net Salary = Earnings (-) Deductions.
From India, Bangalore
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Hi,
Recently, I have joined as the management trainee for an IT company handling general HR activities. I am a fresher and completely new to this field. The information provided regarding the salary break-up was very useful. Thank you very much.
From India, Madras
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Recently, I have joined as the management trainee for an IT company handling general HR activities. I am a fresher and completely new to this field. The information provided regarding the salary break-up was very useful. Thank you very much.
From India, Madras
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Hello all,
I am looking for a change. Kindly let me know if there is any vacancy for HR. Presently, I am working with the Management college as an HR cum Admin Head and I would like to transition into core HR.
Regards
From India, Delhi
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I am looking for a change. Kindly let me know if there is any vacancy for HR. Presently, I am working with the Management college as an HR cum Admin Head and I would like to transition into core HR.
Regards
From India, Delhi
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Hi Ayesha,
Gross = Basic + DA + HRA + Conveyance + Others. Net Salary = Gross - PF (Emp Cont) - ESI (Emp Cont) - PT. CTC = Gross + PF (Employer Cont) - ESI (Employer Cont). Apart from this, Medical Allowance, Gratuity, Statutory Bonus, LTA, performance bonus, etc., are also used as part of the salary structure (CTC).
Best Regards, Vishnu V Reddy Sr. Executive - HR
From India, Hyderabad
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Gross = Basic + DA + HRA + Conveyance + Others. Net Salary = Gross - PF (Emp Cont) - ESI (Emp Cont) - PT. CTC = Gross + PF (Employer Cont) - ESI (Employer Cont). Apart from this, Medical Allowance, Gratuity, Statutory Bonus, LTA, performance bonus, etc., are also used as part of the salary structure (CTC).
Best Regards, Vishnu V Reddy Sr. Executive - HR
From India, Hyderabad
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Hi,
Gross = Basic + DA + HRA + Conveyance + Others.
Net Salary = Gross - PF (Emp Cont) - ESI (Emp Cont) - PT
CTC = Gross + PF (Employer Cont) - ESI (Employer Cont)
In addition to this, Medical Allowance, Gratuity, Statutory Bonus, LTA, performance bonus, etc., are also considered part of the salary structure (CTC).
Best Regards,
Vishnu V Reddy Sr. Executive-HR
From India, Hyderabad
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Gross = Basic + DA + HRA + Conveyance + Others.
Net Salary = Gross - PF (Emp Cont) - ESI (Emp Cont) - PT
CTC = Gross + PF (Employer Cont) - ESI (Employer Cont)
In addition to this, Medical Allowance, Gratuity, Statutory Bonus, LTA, performance bonus, etc., are also considered part of the salary structure (CTC).
Best Regards,
Vishnu V Reddy Sr. Executive-HR
From India, Hyderabad
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HR Manual (Employee Hand Book).doc