Salary break up

This query is : Resolved

ramana (Querist)
Follow

28 December 2012 Dear Experts, First of all thx for ur kindly help

i am accountant in a pvt company, my senior software engineer drawing salary 1002000 pa, plz give me salary break up as per icai standards. plz urgent

@VaibhavJ

@VaibhavJ (Expert)
Follow

28 December 2012 Hi,

I guess ICAI has not set yet any standard for Salary Break up.

But most advisable break up will be:

Monthly::
Basic:35000
HRA: 17500
Conveyance Allowance:800
Child edu allowance: 200
Other Allowance:12000
Monthly Bonus:4500

Reimbursement::
Medical:1250
Fuel Reimbursement:6000

Annual Compensation:
LTA:40000
Performance Incentive:35000

Hope this clears your doubts.

Thanks!!

ramana

ramana (Querist)
Follow

28 December 2012 Thx

on what basis u have to calculate

i know some rules:
basic = 40% or 50%
hra=20%
DA= 10%
CONVEYANCE ALLOWANCE=6%
MEDICAL ALLOWANCE = 10%
EDUCATION ALLOWANCE = 13%
MISCELLANEOUS ALLOWANCE = 1%

THIS IS CORRENT OR NOT.
MONTHLY BONUS , LTA, & PERFORMANCE INCENTIVE IS NOT THERE. PLZ

Upgrade to CAclubindia Pro. Subscribe Now!

@VaibhavJ

@VaibhavJ (Expert)
Follow

28 December 2012 Hi

Maximum amount deductible for Travel Allowance is 800 & Child edu. is 200 p.m.

For Medi. Reimb. Max is Rs. 15000 p.a. & Fuel Reimbursement is as per Industry Standars.

So for higher salaried ppl we can have to fix ceiling.

Basic to be 35 to 40 % of Monthly CTC, HRA to be 40% to 50% basic depending upon Metro and Non Metro location.

LTA is paid twice in four years block so we can offer same to higher salaried ppl for tax savings.

Now Bonus & Incentives are added to improve performance of an employee.

I hope i am bale to clarify your doubts.

Thanks!!

ramana

ramana (Querist)
Follow