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Salary breakup for employee

Dipesh Dedhia (Owner) (56 Points)

12 October 2013

Hi,

I want salary breakup of Rs. 8000 / per month

Kindly suggest a components to add into it for partnership firm.

Regards

Dipesh Dedhia

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15 Replies

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 12 October 2013

Dipesh Bhai,

Is Rs. 8000 net salary or Gross Salary?

Which state you belong to?

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Dipesh Dedhia (Owner) (56 Points)
Replied 12 October 2013

Vaibhav bhai, Maharashtra, Mumbai

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 12 October 2013

Basic	Rs. 6,000
Special Allowance	Rs. 2,046
HRA	Rs. 300

Gross Salary	Rs. 8,345

ESIC	Rs. 146
PT	Rs. 200

Net	Rs. 8,000

PF is not applicable since Basic + SA is greater than Rs. 6500/-

ESIC is calculated since Gross is less than Rs. 15000/-

IF ESIC is not applicable break up will change.

Basic & Sp. Allow as per Minimum wage applicable.

Thanks//VaibhavJ

Dipesh Dedhia (Owner) (56 Points)
Replied 12 October 2013

Component	Per Annum	Per Month
Basic	52,800.00	4,400.00
H.R.A.	26,400.00	2,200.00
Medical Allowance	7,200.00	600.00
Conveyance Allowance	9,600.00	800.00
Monthly / Yearly Gross	96,000.00	8,000.00
Deductions :-	-	-
Professional Tax	1,800.00	150.00
Net In-Hand Salary		7,850.00

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 12 October 2013

Baisc + HRA should be more than Minimum Wages i.e. Rs. 7226

Thanks

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Dipesh Dedhia (Owner) (56 Points)
Replied 12 October 2013

Vaibhav,

My company is partnership firm.

We are going to appoint executive - software developer

ESIC & PF will not be applicable.

What would be the exact working, if salary per month is Rs. 8000/-

As per accounting standards, seeing employee and employer benefit.

Regards

Dipesh

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 12 October 2013

Ok,

First of all since Salary is at present out of tax bracket no need to give Conveyance Allowance.

For MH min HRA contribution is 5%, thus breakup is;

Basic + SA (as required by Min Wage Act)=7626

HRA = 381

Gross = 8007

Less PT = 125

Net Rs. 7882

Thanks

Dipesh Dedhia (Owner) (56 Points)
Replied 12 October 2013

Vaibhav,

Thanks a lot

Please say what would be basic amount and Special allowance amount

Regards

Dipesh

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 12 October 2013

Basic Rs. 5800, SA Rs.1826.

This is applicable till Dec2013.

Thanks//VaibahvJ

Dipesh Dedhia (Owner) (56 Points)
Replied 12 October 2013

Vaibhav,

Thanks a lot.

Regards

Dipesh

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SUMIT KUMAR JHA (MANAGER ACCOUNTS) (32 Points)
Replied 16 October 2017

Have two queries:

1)Is there is any specific rule for salary breakup as per PF Act.

Considering the PF Act, is there any issue in keeping all the salary amount as basic salary only ?

For example : Offered Gross salary is Rs.15500/- per month and want to keep Rs.15500/- as basic salary only. No HRA, No conveyance , No special allowance etc....

2)Can i keep two salary structure in the same organisation? One salary structure for lower salary group employees and another salary structure for higher salary group emplyees ?

Earliest response shall be highly appeciated !!