Can someone please share a salary structure for an employee who will be receiving INR 18,000?

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Hi great minds,

Can someone please share a salary structure for an employee who will be receiving INR 18,000 - I am not sure as to where shall the ESIC contributions be reflected, and will PF be deducted still?

Appreciate your replies

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Hi-

Breakup as follows of 18000 monthly CTC-
Basic Wage 50%
HRA (50% for metro cities, and 40% for non metro cities)
Conveyance 1600
Medical Allowances 1250

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Dear Visadmin,

Thank you.

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this is our present salary structure, how shall I modify it for this employee who will have a Total Fixed CTC of 18,000?

thank you for your reply.

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Hi

There is no exemption for conveyance and medical allowance since few years. There is no point in showing them in pay structure.

Thanks and Regards

Natarajan S

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Dear Natarajan,

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will this fitment be then fine?
He is not required to contribute to PF right?

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First we have to examine what is the minimum wage applicable.

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Hi mohanjacob,

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I am employing this person as an admin assistant.

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Hi Ludy,

The minimum wage state wise will be applicable irrespective at which post you are hiring.

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Hi

Please check for the minimum wages act for the category the offer given employee falls in. If minimum wages is covered then they will be coming under PF act, as the basic+DA is less than 15000/- and they will be covered under Family pension fund also. If you have employed less than 20 employees and are not covered under PF act then the below offer is fine.

Please check and share the offer.

Thanks and Regards

Natarajan S

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Dear Natarajan,

You lost me there…
Our company is registered with PF and all our employees are registered as well. Just that this is the first employee we will be employing with 18,000 CTC - so ESIC is mandatory (4% employer and 1% employee), that is the basis of the fitment above.
So, should PF also be added aside from ESIC?

Building-and-Other-Construction-Works_Minimum Wages.pdf (1.8 MB)

Appreciate your reply!

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11

18000 is gross salary if you consider then proposed salary will be

image.png

thanks
Ashish B

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Dear Ashish,

I sooo appreciate your reply…
Thank you soooo much!!!

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Please Make Salary Structure for 18000 CTC as follows:
Basic : 8200
HRA: 3280
Child Edu Alw: 200
Child Host Al: 600
Special Alw: 4200
Total : (A) 16480
Empr Other:-
PF@12% of Basic 984
ESI@3.25% of A 536
CTC: (B) 18000
Deductions:
PF: 984
ESI: 124
Total Deductions:(C) 1108
Net Pay (A-C): 15372

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14

Sir. Basic is below Minimum wages.

Regards

Jaisimha

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Dear Jaisimha,

What is the minimum wage?

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Minimum wages means the complete wage. It is not necessary that the basic wage should be higher than minimum wages.

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