Salary structure

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2012 Hi,
I am working as an Accounts officer at a sole proprietorship firm providing software development services. Our employee strength is 60 now. I joined the company recently and i want to implement a proper salary structure. Right now only Prof. tax is deducted from salary.

How can i implement Esi, PF, and other allowances in the salary structure please advice. What are the critieria for registering for PF and Esi. And how can i show other allowances like, medical allowances, children education allowance etc from salary.

Ki$hor B

Ki$hor B (Expert)
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01 May 2012 Register under PF & ESIC.
Deduct the payroll taxes at appropriate rates.
Break up the annual CTC into different components such as Basic + Allowances that you want to consider as salary components.
Further, deduct TDS as per the slabs.

hope this helps! let me know.

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2012 Thanks for your reply. But for PF registration is required when the basic salary of employee id less than 3500 pm , here we have only 8 to 9 employees with less than 3500 pm rest all are above 10,000. What can be the ideal CTC structure as the employees are demanding for allowances that can save their tax .

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Ki$hor B

Ki$hor B (Expert)
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03 May 2012 For PF registration the minimum no. of employees need to be atleast 20.
Further, Salary (as per PF act) has to be 6500 & above for deducting PF.

Ki$hor B

Ki$hor B (Expert)
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03 May 2012 There are no ideals for CTC break up.
However, you can include its components as:

Basic
HRA
Education allowance
Travelling allowance
Others

Let me know should you need further details.

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2013 Hello Sir,

Have this query regarding allowances. Do i require to collect proofs from employees for considering allowances like education allowance, hostel allowance, professional attire allowance, books and magazine allowance for calculating TDS dedcution.