Dear Friends, Hi, Kindly help me out in desiging the salary breakup so that less tax is deducted. Help me out in selecting the heads for salary breakup. Thanks in advance Ritu
From India, Delhi
1From India, Delhi
Hi Ritu,
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope it must have helped you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope it must have helped you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
Dear Amit What is CCA ? City Compensation Allowance????? If yes then we can even add in another point of Conveyance Allowance which is tax exempt upto 800/- per month right ? Best Regards, Tina
From India, Mumbai
From India, Mumbai
Hi Amit!!! Was going through the breakup given, just need to confirm that ESI contribution from employees salary is 1.75% of basic salary and 4.75% is of employer.. Isn’t it? Thanks, Mansi
Hi Amit!!!
Was going through the salary breakup given, just need to confirm that ESI contribution from employees salary is 1.75% of basic salary and 4.75% is of employer..
Isn't it?
Thanks,
Mansi
Was going through the salary breakup given, just need to confirm that ESI contribution from employees salary is 1.75% of basic salary and 4.75% is of employer..
Isn't it?
Thanks,
Mansi
Hello Amit,
Although I am not concern with HR, but have interest to get updated from such things.
Thanks,
[IMG]http://a2.twimg.com/a/1254358647/images/frontpage-bird.png[/IMG]
From India, Chandigarh
Although I am not concern with HR, but have interest to get updated from such things.
Thanks,
[IMG]http://a2.twimg.com/a/1254358647/images/frontpage-bird.png[/IMG]
From India, Chandigarh
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Typical salary breakup.jpg
Salary breakup.xls
Salary Breakup Annexure.doc