Dear Seniors,
Can anyone tell me the standard procedure for calculating the salary from the gross salary? Will the basic salary be 40% or 50%? One of our employees' gross salary is 10000. Are they eligible for the ESI Act?
Gross: 10000
Basic 60%: 6000
HRA 24%: 2400
Conveyance: 800
Other allowance: 800
ESI: 175
PF: 720
Take Home: 9105
Is this calculation correct?
Thank you.
From India, Chennai
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9Can anyone tell me the standard procedure for calculating the salary from the gross salary? Will the basic salary be 40% or 50%? One of our employees' gross salary is 10000. Are they eligible for the ESI Act?
Gross: 10000
Basic 60%: 6000
HRA 24%: 2400
Conveyance: 800
Other allowance: 800
ESI: 175
PF: 720
Take Home: 9105
Is this calculation correct?
Thank you.
From India, Chennai
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Hi,
There is no standard procedure for salary break-ups. All we have to keep in mind while preparing breakups is to reduce tax on employees. For a gross pay of Rs. 10,000, you should design the format in any way you see fit. Even what you have prepared is good enough. Make sure that basic pay and dearness allowance (DA) are not less than the minimum wages as per the act.
From India, Bangalore
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There is no standard procedure for salary break-ups. All we have to keep in mind while preparing breakups is to reduce tax on employees. For a gross pay of Rs. 10,000, you should design the format in any way you see fit. Even what you have prepared is good enough. Make sure that basic pay and dearness allowance (DA) are not less than the minimum wages as per the act.
From India, Bangalore
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Hi,
I have attached here the format which we are using to calculate salary. There is no standard procedure for calculating the salary. Basic percentage is different from company to company.
As per the ESIC act, employees who are earning more than 15000/- as gross salary are not entitled to ESI. If the gross salary is below 15000/-, they are eligible to receive ESI.
Regards,
Valan
From India, Madras
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I have attached here the format which we are using to calculate salary. There is no standard procedure for calculating the salary. Basic percentage is different from company to company.
As per the ESIC act, employees who are earning more than 15000/- as gross salary are not entitled to ESI. If the gross salary is below 15000/-, they are eligible to receive ESI.
Regards,
Valan
From India, Madras
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SALARY SHEET CALCULATION.xls
Typical salary breakup.jpg