Hi can any boday update me regarding, Special allowance. I mean to say what are the criteria for counting Special allowances. and how one can prepare salary splip for employee .. Regards, Vijay
From India, Mumbai
From India, Mumbai
Dear Vinay,
Special Allowance is any Allowance which is given under the following circumstances:
1) To Regularise Salary Structure:
For example: Suppose while recruiting a person for a particular position (say Dy. Manager) the annual CTC agreed upon is 12.00 lacs. Now, giving all allowances, perquisites along with the Salary for Dy. Managers in you Company comes to 11.00 lacs. Now this extra 1.00 lac can be given by way of Special Allowance.
2) To save post retiral benefits:
For example : If the Basic Pay of Employees are increased it has cumulative effect on PF, Gratuity and Leave Pay, so most companies when giving high rise in Salary usually give the rise in Special Allowance to save themselve from paying high retiral benefits and higher contribution to PF, Gratuity and Leave Pay.
Always remember it is easier to change Special Allowance as it can be treated and adjusted on case to case basis, while the same cannot be done for other allowances and perquisities like HRA, Conveyance which are general set on grade/designation wise. So, Special Alllowance is an allowance where if you cannot put a payment under any other hrasd you put it under Special Pay.
3) Others:Special Allowance relating to any court order, legislature or nature of Duty.
Revert back for further queries,
Regards,
SC
From India, Thane
45Special Allowance is any Allowance which is given under the following circumstances:
1) To Regularise Salary Structure:
For example: Suppose while recruiting a person for a particular position (say Dy. Manager) the annual CTC agreed upon is 12.00 lacs. Now, giving all allowances, perquisites along with the Salary for Dy. Managers in you Company comes to 11.00 lacs. Now this extra 1.00 lac can be given by way of Special Allowance.
2) To save post retiral benefits:
For example : If the Basic Pay of Employees are increased it has cumulative effect on PF, Gratuity and Leave Pay, so most companies when giving high rise in Salary usually give the rise in Special Allowance to save themselve from paying high retiral benefits and higher contribution to PF, Gratuity and Leave Pay.
Always remember it is easier to change Special Allowance as it can be treated and adjusted on case to case basis, while the same cannot be done for other allowances and perquisities like HRA, Conveyance which are general set on grade/designation wise. So, Special Alllowance is an allowance where if you cannot put a payment under any other hrasd you put it under Special Pay.
3) Others:Special Allowance relating to any court order, legislature or nature of Duty.
Revert back for further queries,
Regards,
SC
From India, Thane
Hi SC,
Thanks for your valuable comments.
secondly I wants to know what are the criteria to decide HRA,
According to my knowledge it will be 5% of Total basic or Rs.40 whichever his higher but still I have some doubt.
Please send you comments on this above topic.
Regard,
Vijay
From India, Mumbai
Thanks for your valuable comments.
secondly I wants to know what are the criteria to decide HRA,
According to my knowledge it will be 5% of Total basic or Rs.40 whichever his higher but still I have some doubt.
Please send you comments on this above topic.
Regard,
Vijay
From India, Mumbai
Dear Vijay,
Sorry for the delay..
You have said:
This percentage and amount is given in state House Rent Allowance Acts, like the 5% of Basic Salary is mentioned in West Bengal House Rent Allowance Act, so for employees covered under this Act, in States where there is such a statute; you must give the stated minimum amount as per the same.
For HRA since there is a Income Tax Benefit by way of rent paid, it is always better to give a substaintial amount under HRA to avail the Tax Benefits.
Regards,
SC
From India, Thane
Sorry for the delay..
You have said:
This percentage and amount is given in state House Rent Allowance Acts, like the 5% of Basic Salary is mentioned in West Bengal House Rent Allowance Act, so for employees covered under this Act, in States where there is such a statute; you must give the stated minimum amount as per the same.
For HRA since there is a Income Tax Benefit by way of rent paid, it is always better to give a substaintial amount under HRA to avail the Tax Benefits.
Regards,
SC
From India, Thane
Hi,
Following is the salary sheet format you just put up salary in the salary sheet then automatically it will give the break ups.I have also attached salary slip format for your reference.
<link outdated-removed>
sal slip Format .doc
From India, Mumbai
Following is the salary sheet format you just put up salary in the salary sheet then automatically it will give the break ups.I have also attached salary slip format for your reference.
<link outdated-removed>
sal slip Format .doc
From India, Mumbai
Hi, SC,I am Rajan here,as you said Spl.Allowance we can change as per requirement,aslo you said to avoid high portion of contribution to pf,and bonus ,gratuity we can keep spl.allowance as per our requirement,but cannot its attract contr.towards pf,and with basic cannot we consider spl.allw.for bonus grat.calculation.perhaps in so many company spl.allowance fixed with govt.notification,for half yearly or monthly in that case we cannot change it.and i am not agree with point no.1 that 1 lakh we can put in spl.allowance.please advise.Rajan
From India, Pune
From India, Pune
Hi Swastik... thanx so much for sharing the information... that was really helpful.... :)
From India, New Delhi
From India, New Delhi
Dear all, Can anybody help me to caluclate Special Allowance, and Conveyance Allowance. Please let me know the percentage (%) to caluclate these allowance. With Love Ashok
From India, Bangalore
From India, Bangalore
Can any you please tell me in detail about the Special allowance( on minimum wages declared by govt) , which is also called goverment special allowance or govt. VDA. The reason for this question is , our management want to abolish the practice of giving VDA based on CPI index, and to start the Govt. special allowance declared from time to time in place of VDA. Please tell in detail.
Regards,
KKRameshan.
From India, New Delhi
Regards,
KKRameshan.
From India, New Delhi
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Maharashtra Special allowance Notification July 14 to Dec 14.pdf