Dear Sir, Our Company is separated from Gross salaryby Basic(60%), HRA(30%), Education (4%), Medical(4%) & Washing (2%). Which act is involved this. Please give clarification & act details.
From India, Mumbai
3From India, Mumbai
Dear Our entire act is silent on breakup of salary so it is depending upon company to company only considering minimum wage. Regards Anurag
From India, Hyderabad
From India, Hyderabad
As Anurag has rightly said, no Act speaks about Salary Breakup, the only criteria is to abide by the Minimum Wages.
From India, Ahmadabad
From India, Ahmadabad
Agreed form anurag & saji comment i also add that basic should not be less than the prescribed minimum wages of the state and as far as conveyyance is concern upto Rs. 800/- is non taxable above than that is taxable and also for medical i.e upto Rs. 1250/- is non taxable above than that is taxable.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Compensation structure for any organisation usually has three components to-the base salary which is fixed and regular for all employees; incentive designed to reward employees for good performance and benefits which usually nonmonetary in nature. A perquisite also known as perks is a special kind of benefit for a limited set of employees.
The conventional notion has been that compensation strategy of an organization is determined by the job/role evaluation, market competitiveness & the budget.Keeping the long term financial impact ( as all long term benefits like gratuity,PF,Pension,leave encashment,etc are linked to basic) in mind the organisations should make an attempt to keep the basic salary hovering around the 30 to 50% of gross .Care needs to be taken that the Basic salary for every employee is higher than the minimum wages applicable to the respective industry( usually minimum wages are revised twice a year,where as annual reward happens on an yearly basis so keeping in mind the historical data of rise in minumum wages the basic salary should be fixed).Regarding other components of the structure one needs to keep in mind the prevalent industry practice & the applicable non taxable limits for certain components like LTA,Medical reimbursement,conveyance,canteen subsidy,food vouchers,HRA( 50% for Metro & 40% for other cities) as set in The Income Tax Act .These non taxable limits are subject to review every year and one needs to be keep on reworking the CTC structure every year keeping in mind giving maximum benefit to employees for a tax efficient salary.thus the compensation structure shoud be dynamic in nature
From India, Mumbai
The conventional notion has been that compensation strategy of an organization is determined by the job/role evaluation, market competitiveness & the budget.Keeping the long term financial impact ( as all long term benefits like gratuity,PF,Pension,leave encashment,etc are linked to basic) in mind the organisations should make an attempt to keep the basic salary hovering around the 30 to 50% of gross .Care needs to be taken that the Basic salary for every employee is higher than the minimum wages applicable to the respective industry( usually minimum wages are revised twice a year,where as annual reward happens on an yearly basis so keeping in mind the historical data of rise in minumum wages the basic salary should be fixed).Regarding other components of the structure one needs to keep in mind the prevalent industry practice & the applicable non taxable limits for certain components like LTA,Medical reimbursement,conveyance,canteen subsidy,food vouchers,HRA( 50% for Metro & 40% for other cities) as set in The Income Tax Act .These non taxable limits are subject to review every year and one needs to be keep on reworking the CTC structure every year keeping in mind giving maximum benefit to employees for a tax efficient salary.thus the compensation structure shoud be dynamic in nature
From India, Mumbai
Dear ROHITINDIA1005,
There is no law in India to split (gross) salary in to various components except in some States there is a law of minimum HRA.
Law only says that you have to pay as per the Minimum Wage Rates as per the schedule industry. In some States, MWR denotes basic and DA / SpAll.
From India, Mumbai
There is no law in India to split (gross) salary in to various components except in some States there is a law of minimum HRA.
Law only says that you have to pay as per the Minimum Wage Rates as per the schedule industry. In some States, MWR denotes basic and DA / SpAll.
From India, Mumbai
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