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Please explain me this term

DHIRAJ ARORA (Student CA Final ) (32 Points)

28 November 2012

Hello everyone.., i always had this doubt.., so asking here today...

In every advertisement for job,., they mention about the salary terms in some typical way.., i dont understant that., what it means?

Let say, for example, if its mentioned as in

MMG Scale –II - Rs.19400 -700/1 -20100 -800/10 -28100

What does above para means?
Whats the basic salary and what is this 700/1 and all.., didnt get it at all...

thanx to everyone...

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4 Replies

CA Ruben Balooni (Professionalism ™) (1324 Points)
Replied 28 November 2012

19400 - 700/1 - 20100 - 800/10 - 28100

19400 is the initial basic salary

700/1 means your initial basic salary will increase by 700 in the next 1 year. So Basic Salary at the end of 2nd year would be 19400+700 = 20100

800/10 means ur basic salary at the end of 2nd year will increase by 800 in each 10 succeeding year from the end of 2nd year. So your final basic salary at the end of 12th year would be - 20100 +800*10 = 28100

- Ruben Balooni

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Satish Makam (Asst. Manager - Accounts) (294 Points)
Replied 28 November 2012

700/1 means your initial basic salary will increase by 700 in the next 1 year. So Basic Salary at the end of 2nd year would be 19400+700 = 20100

ruben, is the bolded word should be 1st or 2nd.

please clarify me.

Sanjeev Parasrampuria (B.Com CA Final CS Final) (273 Points)
Replied 28 November 2012

Originally posted by : Ruben Balooni
	19400 - 700/1 - 20100 - 800/10 - 28100 19400 is the initial basic salary 700/1 means your initial basic salary will increase by 700 in the next 1 year. So Basic Salary at the end of 2nd year would be 19400+700 = 20100 800/10 means ur basic salary at the end of 2nd year will increase by 800 in each 10 succeeding year from the end of 2nd year. So your final basic salary at the end of 12th year would be - 20100 +800*10 = 28100 - Ruben Balooni

I agree with Ruben Balooni. He explain in simple way & clearily.

CA Ruben Balooni (Professionalism ™) (1324 Points)
Replied 28 November 2012

Originally posted by : Satish Makam
	700/1 means your initial basic salary will increase by 700 in the next 1 year. So Basic Salary at the end of 2nd year would be 19400+700 = 20100 ruben, is the bolded word should be 1st or 2nd. please clarify me.