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Salary Structure In India

Six Elements of Salary framework

Basic Salary – The base income that an employee receives which usually is 25-30% of the total is considered one’s Basic Salary. The amount is usually fixed based on the designation that the employee holds with the company. It’s a taxable amount.

Allowances – This is wage paid to the employee during the course of their regular work. Depending on the type of Allowance it is either taxable or non-taxable.

Gratuity -. It is usually calculated a 4.8% of the basic pay .

Employee Provident Fund – It is an investment, which is remitted by both employee and employer during the course of employment on a month basis. 12% of the basic salary gets deducted for this purpose.

Professional Tax – Members from all profession pay professional tax.The maximum amount that is generally paid is not more than INR 2500.

ESIC – For all companies where the number of employees are 10 or more and every person’s pay is below INR 21000, then it is a must for companies to avail.

via vakilsearch.com

Salary Structure In India

 

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