Hi Seniors,
Thanks for your valuable suggestions which you all gave me before.
I want to know about the salary calculation, in my company Basic pay is different from salary to salary and i am not getting how much percentage they are calculating.
I was searched in many site it is also different from one to another.
How i have to calculate the basic pay,HRA,Conveyance,special allowances.Is it really differs from company to company and salary to salary.
Please suggest me in this.
Thanks & Regards,
Swathi
(swathi.vennala3@gmail.com)
From India, Visakhapatnam
6Thanks for your valuable suggestions which you all gave me before.
I want to know about the salary calculation, in my company Basic pay is different from salary to salary and i am not getting how much percentage they are calculating.
I was searched in many site it is also different from one to another.
How i have to calculate the basic pay,HRA,Conveyance,special allowances.Is it really differs from company to company and salary to salary.
Please suggest me in this.
Thanks & Regards,
Swathi
(swathi.vennala3@gmail.com)
From India, Visakhapatnam
Hi,
Yes, its different from company to company and salary to salary.
1.As you know basic is fully taxable and there is no rules and regulations of considering Basic.
see simple thing always on gross take basic-below 40%(because its fully taxable component so try to give lesser amount)
2.HRA is 40% or 50% it depends on metro nad non-metro cities.
always HRA will be calculate on Basic
3.Conveyance tax exemption is-800, if you will give more than exempted amount then employee will be taxable above 800/-Rs
4.Spl.allowance=gross-all Components(Basic,HRA,Conveyance)
May this will help you
From India, Mumbai
Yes, its different from company to company and salary to salary.
1.As you know basic is fully taxable and there is no rules and regulations of considering Basic.
see simple thing always on gross take basic-below 40%(because its fully taxable component so try to give lesser amount)
2.HRA is 40% or 50% it depends on metro nad non-metro cities.
always HRA will be calculate on Basic
3.Conveyance tax exemption is-800, if you will give more than exempted amount then employee will be taxable above 800/-Rs
4.Spl.allowance=gross-all Components(Basic,HRA,Conveyance)
May this will help you
From India, Mumbai
Hi,
Generally basic should be 50% of the gross salary and HRA should be 40%(Non-Metro) or 50%(Metro) of basic salary. As said by Mr. Ravi Conveyance upto 800 is tax exempted.
For instance Gross=30,000
Basic should be 15000
HRA should be 7500
Conveyance 800
So the total is 23300.
If there is no other allowances as per company policy so Special Allowance would be (30000-23300)= 6700
So the annexure would be
Basic should be 15000
HRA should be 7500
Conveyance 800
Special Allowance 6700
Gross Salary= 30000.
Hope it will clear your doubts.
Pijush Chunari
From India, Bagnan
Generally basic should be 50% of the gross salary and HRA should be 40%(Non-Metro) or 50%(Metro) of basic salary. As said by Mr. Ravi Conveyance upto 800 is tax exempted.
For instance Gross=30,000
Basic should be 15000
HRA should be 7500
Conveyance 800
So the total is 23300.
If there is no other allowances as per company policy so Special Allowance would be (30000-23300)= 6700
So the annexure would be
Basic should be 15000
HRA should be 7500
Conveyance 800
Special Allowance 6700
Gross Salary= 30000.
Hope it will clear your doubts.
Pijush Chunari
From India, Bagnan
Hi,
Pijush don't say that it should be 50%, i wont agree with that, because most of the companies basic is below 40% else up to 40%.
as you know pijush Basic is fully taxable then what is the use of giving 50%.
From India, Mumbai
Pijush don't say that it should be 50%, i wont agree with that, because most of the companies basic is below 40% else up to 40%.
as you know pijush Basic is fully taxable then what is the use of giving 50%.
From India, Mumbai
Hello,
I know but most of the companies gives 50% basic. It varies company to company. Its the general and simple structure that i am talking about. It totally depends upon the company's salary structures.
From India, Bagnan
I know but most of the companies gives 50% basic. It varies company to company. Its the general and simple structure that i am talking about. It totally depends upon the company's salary structures.
From India, Bagnan
There is no hard and fast rule that the Basic Salary should be 40% or 50% of the Gross Salary, As per MWA the Basic Pay should not be less than MW. We can work backwards after covering all the exempted Tax structures and derive at Basic by reverse Calculation too, so no need to fix the Basic as 40 or 50%
From India, Ahmadabad
From India, Ahmadabad
Thanks for quick and valuable answers. In my company basic pay is differ from one salary to another how they will calculate it.why it is not equal to every one. Here basic pay is 65%
From India, Visakhapatnam
From India, Visakhapatnam
As I said earlier there is no hard and fast rule it can be any, in some companies Basic is kept more so that for all Statute are calculated on Basic + DA, so the employees are benefitted more, that is the logic behind for higher Basic.
From India, Ahmadabad
From India, Ahmadabad
Hi,
I think in your company manpower is more so they may be done some groups like....
if some employee salary is 10000 to 20000 then its Band-1
if some employee salary is 20000 to 40000 then its band -2
for that reason may be they had prepared different CTC's for different Bands.
May be these are the possibilities...is it
From India, Mumbai
I think in your company manpower is more so they may be done some groups like....
if some employee salary is 10000 to 20000 then its Band-1
if some employee salary is 20000 to 40000 then its band -2
for that reason may be they had prepared different CTC's for different Bands.
May be these are the possibilities...is it
From India, Mumbai
Hi Ms Swathi.
As our colleagues suggested there is no any hard & fast rules in the salary components even I do agree the same. The only thing should be followed is the salaries are divided to save the employees TDS. But we should ensure that Basic wages should not be lesser than minimum wages act. At the same time most of the companies follows basic as 50% on gross
From India, Bangalore
As our colleagues suggested there is no any hard & fast rules in the salary components even I do agree the same. The only thing should be followed is the salaries are divided to save the employees TDS. But we should ensure that Basic wages should not be lesser than minimum wages act. At the same time most of the companies follows basic as 50% on gross
From India, Bangalore
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Creating a Competitive Salary Structure.doc
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