Here is a sample salary structure in Excel format which will help you in calculating the net salary of employees and the CTC of the employer. The below salary breakup format in excel consists salary breakup structure, salary breakup percentage, and a CTC calculator.
The salary structure of every employee consists of some basic salary components like basic salary, house rent allowances (HRA), conveyance allowances, special allowances, EPF, ESI, and professional tax.
Components of salary
Basic Salary: Basic salary should be 40% – 60% of gross salary, which will vary from one employer to another employer. In general basic salary should be equal to or more than the minimum wages fixed by the state government of the employer.
HRA allowances: House rent allowances should be at 40% of the basic wage in nonmetro cities, and in metro cities, it should be 50%.
Conveyance allowances: These are fixed allowances. 1600 Rs in urban areas and 800 Rs in rural areas.
Medial allowances: These allowances are fixed to 1250 Rs.
Special allowances: The difference between basic wage and the total of all the allowances is considered special allowances. Simple basic wage – total allowance excluding special allowances.
Deductions
EPF: 12% Provident fund will be deducted if the basic salary of the employee is less than or equal to 15000 Rs. PF is always calculated on basic wage + DA (Dearness Allowances). But in private companies we don’t see dearness allowances, then PF will be calculated on the only basic wage.
Employers will also contribute to PF, they contribute a total of 13%, including PF admin charges.
ESI: It will be calculated on gross wage at a rate of 0.75% for employe and 3.25% for employers. ESI is applicable if the gross salary of the employee is less than or equal to 21000 Rs, otherwise, there is no need to calculate ESI for that employee.
Professional Tax: Professional tax varies from one state to another state. Here are the State-wise professional tax rates in India
What is CTC
CTC means the cost to the company i.e the total expenses of an employer for a particular employee which includes gross salary and employer PF and ESIC contributions.
Every employer needs to pay 13% of the employee’s basic salary towards the EPF account of the employee and 3.25% of the employee’s gross salary as ESIC contribution if applicable.
Also Read:
Hlo sir I want 13700 salary break up
Please provide salary structure along with DA as we are using DA constantly like Rs.4700/- now
Dear Sir,
Please provide as per the new codes implemented in salary structure from 1 April 2022 .then how we will calculate salary ctc & compliance
Hello sir,
This is really neat and clear salary structure, I cleared my doubt by seeing this structure.
Thank you,
Arun
Why is the employer PF contribution 13.35% ?
Esi calculation towards employers contribution should be 20000*4.75% so the amount should be 950 but here in the working it is 427.5. How plz explain.
Now the employer contribution is reduced to 3.25% and the employee contribution is 0.75%.
The salary calculation and structure has being explained in a very simple format, which is easy to understand and calculate. Thanks for sharing this format with us. I would appreciate if you can share the calculation whose ctc is 5 lakhs, 8 lakhs and more as well.
Nice n Simple