salary slip format in word salary slip format in word

It is given in addition to the basic salary and is paid to motivate the employees under the Payment of Bonus Act, 1965. The company provides a statutory bonus as a reward for an employee’s excellent performance. Given below are the most common forms of allowances. The amount of allowance depends on the individual policies of the company. These allowances depend on the location, designation and your job role and are provided over and above the basic salary. AllowancesĪllowances refer to the expenditure incurred by the employer to enable you to render the services required.

Therefore, if the basic salary is too high, it will result in increased tax and PF liabilities, and if it is kept too low, it could violate the minimum wage norms. It accounts for around 40-60% of the CTC and is fully taxable. It can vary depending on the job location, industry and designation. The basic salary is the fixed component of the salary, excluding any benefits and privileges. The demand and supply of the talent in the given areaĬomponents of Salary Breakup Structure 1.The skill sets that the employee possesses and the demand for those skills.Location of the job and the cost of living in the city.The industry they belong to and the significance of the work being done.The level of education and the years of experience.The salary structure of every employee is distinct and is decided based on several factors, such as: This salary structure is pre-defined by the employer, and the gross and in-hand salary is calculated in accordance with the salary breakup structure. What is Salary Breakup?Ī salary breakup structure consists of various components like basic salary, house rent allowance, special allowance, LTA, car allowance, Provident Fund etc. Some companies calculate it by adding the employer’s contribution towards PF (Provident Fund) and Gratuity to the gross salary.įun Fact: RazorpayX Payroll platform provides this as a configuration option to users, so you can choose how to define the CTC structure for your employees. It includes various components like basic pay, provident fund, allowances, etc. Having said that, it is essential to note that CTC is never equal to the take-home pay received at the end of the month.ĬTC is the total amount spent by the company on an employee, whether directly or indirectly. The CTC, or cost-to-company, is the total salary package that the company offers an employee during recruitment. This article explains all you need to know about the CTC, salary breakup, and its components. But it can be a bit confusing since many components are included in the calculation of salary.

Understanding the salary breakup structure is equally important for employees & employers.

Salary slip format in word salary slip format in word