Here is sample salary structure in Excel format which will help you in calculating net salary of employee and CTC of the employer. The below salary breakup format in excel consists salary breakup structure, salary breakup percentage and CTC calculator.
The salary structure of every employee consists of some basic salary components like basic salary, dearness allowances (DA), house rent allowances (HRA), conveyance allowances, special allowances, EPF, ESI, 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 least 5% of the basic wage of the employee. Employers can fix their own HRA percentages based on the cost of living in their location.
Conveyance allowances: These are fixed allowances. 1600 Rs in urban areas and 800 Rs in rural areas.
Special allowances: The difference between basic wage and the total of all the allowances are considered special allowances. Simple basic wage – total allowance excluding special allowances.
The salary of every employee will consist of some deductions like EPF, ESI and professional tax. 12% of employee basic wage will be deducted as PF contribution of employee and 1.75% of employee gross salary will be considered as employee ESIC contribution.
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 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 13.35% of employee basic salary towards EPF account of employee and 4.75% of employee gross salary as ESIC contribution.