Consolidated Pay Meaning in Salary

Consolidated pay means a total salary without any breakup, which means consolidated salary is not divided into salary components like basic wage, HRA, transport & medical allowances, etc. It can be paid on a weekly or monthly basis to the employees. 

For example, if an employee’s consolidated pay/salary is 50,000 Rs per month then he/she will get that amount without any salary breakup. (But remember consolidated salary will have deductions like PF, TDS and professional tax, etc).

Consolidated salary is similar to gross wage and CTC, but the major difference is consolidated pay doesn’t have any breakup structure.

Example:

Normal Gross Salary 50,000 RsConsolidated Salary 50,000 Rs
EarningsEarnings : 50,000 Rs
Basic Wage (45%): 22,500 Rs
HRA:  9000 Rs
Transport  Allowances:  1600 Rs
Medical Allowances: 1250 Rs
Other Allowances: 15,650 Rs
DeductionsDeductions
PF (Upto 15,000 Rs): 1800 RsPF (Upto 15,000 Rs): 1800 Rs
TDS: 650 Rs (Approximate)TDS: 650 Rs (Approximate)
Professional Tax: 200 Rs (Varies in each state)Professional tax: 200 Rs
Inhand Salary : 47,550 RsInhand Salary: 47,550 Rs

FAQs

What is the difference between consolidated salary and basic wage?

Basic wage is a part of gross salary, whereas consolidated salary is the total salary.

Is it mandatory to deduct PF on consolidated salary?

If your consolidated salary is less than or equal to 15000 then PF is mandatory otherwise not. 

Is ESI deduction mandatory on consolidated salary?

If your consolidated salary is less than or equal to 21,000 Rs then ESIC is mandatory. If it is above 21,000 Rs, then you are not eligible for the ESIC scheme.

Is consolidated salary taxable?

Yes, it is taxable. You need to pay income tax as per the latest income tax slab limit like normal salaried employees.

Is standard deduction applies to consolidate salary?

Yes, the 50,000 Rs standard deduction applies to consolidated salary as well.

Is consolidated pay and consolidated salary are same?

Yes, both are the same.

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