Salary annexure is also known as salary break up format. Salary annexure is used to know the CTC of the employees. By seeing the annexure we can know how much a company is spending on that particular employee.
Salary annexure format consists of the benefits given to the employee and also the deductions.
It is issued along with the appointment letters, offer letters, and also during salary increments of the employees.
Annexure means an attachment given with the main letter, so you can name it as Annexure “A” or Annexure “1” (or) you can mention it as just “Annexure”.
Salary annexure consists of Four important parts, 1. General Details of the Employee, 2. Benefits Given to Employees, 3. Salary Deductions and 4. Facilities.
This format varies from one company to another company depending on the different benefits and facilities given by them.
- General Details
- Employee name
- Employee ID
- Date of joining
- Designation
- Department
- Grade
- Location (of Work)
- Employee Benefits
- Basic Wage
- House rent allowances
- Conveyance/transport allowances
- Medical Allowances
- Leave Travel Allowances
- Special / Other allowances
- Provident Fund (PF)
- Gratuity
- Annual Bonus
- Employee Deductions
- PF
- ESI/Health Insurance
- Professional Tax
- TDS/Income Tax
- Labour Welfare Fund
- Facilities
- Vehicle
- Laptop
- Mobile
- Meal Coupons
- Petrol/Diesel expenses
Why Salary Annexure is Important?
1. It is important for both employees and employers, based on the salary annexure the employer will prepare the payslip.
2. When it comes to employees it is more important, most employees just focus on the CTC but they don’t concentrate on the net salary they get.
3. If you observe the salary annexure provided along with the offer letter (or) appointment then you will know how much actual net salary are you going to get. Based on that you can make a decision to join that job or not.
4. Similarly during salary increments also companies will provide annexures along with the increment letters or salary revision letters. So as an employee you have to study it.
How to Calculate the CTC Details Before Entering in Annexure
1. First decide how much gross salary you want to pay to the employee, based on the gross salary you can calculate salary breakup.
2. You can use any salary break calculator or prepare your own salary calculator in Excel (or) in any payroll software as per your company needs.
3. Once you calculate the break up of the salary then you enter those details in Annexure K.
FAQs
What is CTC
CTC means the cost to the company i.e the total cost for the company on a particular employee.
Are salary annexure and breakup are same?
Yes, both are the same.
What is the net salary or take-home salary of the employee?
Net salary is the actual amount given to employees after calculating all the deductions from his/her gross wage.
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