can somebody tell me that if my one employee salary is 48000/- then the below breakup is correct or not?
Basic : 30950/-
HRA :15000/-
Transport allowance: 800/-
Medical allowance : 1250/-
Mukesh Gola
24th October 2008 From India , Faridabad

Dear If im not wrong we calculate basic salary 40% of Gross Salary P.M. HRA would be 50 % of Basic Salary P.M.
8th November 2008 From India , Delhi
Dear Mukesh,
Generally oraganizations keep Basic Salary as 40% or 50% of the basic. If you plan to keep the basic as 40%. I would suggest the following break up. However, if you keep the basic as 50%, the break up will be as follows. I would like to inform that extra money beyond basic, HRA, conveyance, medical can be covered in Special or adhoc allowance. In case your organization has an LTA policy then you may give LTA as well (though this has not been included in the brean up offered).
Salary Breakup at (40% of basic)

Basic 192000
HRA 9600
Medical 15000
Conveyance 9600
Special/Adhoc Allowance 17150

Salary Breakup at (50% of basic)

Basic 24000
HRA 12000
Medical 15000
Conveyance 9600
Special/Adhoc Allowance 9950

Please note that stauary benefits from employer (PF & Gratuity ) are over an and above this salary. In case you want to inculude in 48000 then the break will differ.
Hope this helps.
14th May 2009 From Germany , GŁtersloh
thx kiran ji, but in this case how salary part will be on exempted, if the rent paid is Rs.25000/- regards Mukesh Gola
15th May 2009 From India , Faridabad
Dear Sir/ Mam,
I am new member of citeman. I could not understand :wacko:the salary breakup of RS. 48000 given by Ms. Kiran. Please give me the full detail of calculation of the salary breakup of Rs. 48000/-PM.
Salary Breakup at (40% of basic)
Basic 192000 (40% of Rs. 48000/-)
HRA 9600 (?% of ?)
Medical 15000 (?% of ?)
Conveyance 9600 (?% of ?)
Special/Adhoc Allowance 17150 (?% of ?)
Salary Breakup at (50% of basic)
Basic 24000
HRA 12000
Medical 15000
Conveyance 9600
Special/Adhoc Allowance 9950

After that I will give you another breakup :).
15th May 2009 From India , Chandigarh
Dear Sir/Madam
This is Partha Sarathi Mishra have completed my MBA from Bijupattnaik University of Technology using this site since six months. now I am looking for a HR generalist break, There fore I request everybody to help me with several related documents like Salary Structure, PF and ESIC.
2nd January 2011 From India , Bhubaneswar
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27th February 2011 From India , Delhi
Salary Break Up is done based on 3 components.
HRA (House Rent Allowance)
Flat Allowance
HRA for non metro cities is 40% and for metro cities (delhi, mumbai, kolkata and chennai) is 50% of the employees' basic salary,
Maximum conveyance is Rs 800.
Flat Allowance depends how the employee's employer gives him or her the flexible benefit plan or package.
Employee claiming for conveyance cannot claim for fuel and maintenance charges. Either conveyance or fuel and maintenance has to be claimed.
HRA will be considered following three rules of counting HRA.
1. Based on the type of city the employee is residing.
2. Actual HRA received.
3. 10% of excess rent paid over Basic Salary
22nd April 2011 From India , Bangalore
Hi all,
we have 60 manpower in our company so what component will come in salary breakup how can calculate the component and we dont give any PF and ESIC but now we are thinking about PF and ESIC for our employee.can you help me on same
10th December 2014 From India, Mumbai
Hello Mukesh,
For basic salary you just have to comply with Minimum Wages. So 30950 as basic is ok. Only things is basic component is taxable so your employee cannot benefit much in tax saving you instead you can keep it in the range of 35%-40% of your gross pay.
HRA is 40% of basic for non-metro cities and 50% for metro-politan cities. So calculate HRA accordingly.
Transport Allowance maximum you can keep it to 1600 per month(max limit for tax exemtion) so that he can avail maximum tax exemption. Other wise 800 is also ok. Medicle Allowance is fine.
If you decide to re-work on basic, then the adjustment to sum up to a gross figure can be shown as other allowance.
4th January 2016 From India, Mumbai


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