Hello, I need help with the salary structure in India. I mean basic tax deductions like professional tax, PF, etc. Please provide me with a clear structure. Let's say an employee gets ₹20,000/- as salary, what will be his in-hand salary after all deductions? Please help me out.
From India, Indore
Acknowledge(1)
Amend(0)
3From India, Indore
Acknowledge(1)Amend(0)
You should follow some standards followed by the industry. It is not clear which industry you are looking for. Normally, the basics would be 40% of the annual salary, and HRA would be 40% of the Basic. It may differ between metro and non-metro areas. The rest you may create like conveyance and special allowance. Your structure should be simple and convenient. Deductions like PF, which is 12% of the basic, and Professional Tax will apply for this salary of ₹20,000 per month. If you mention the monthly salary, your company may have a commitment towards the employer's share of PF, Bonus, Gratuity, and any insurance covers should also be taken into consideration for arriving at the Cost to Company. This helps in building a salary structure.
From India, Hyderabad
Acknowledge(2)
Amend(0)
From India, Hyderabad
Acknowledge(2)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PROFESSIONAL TAX SLABS - INDIA.xls
Professional tax hyderabad.doc