What are the Salary Components Available in a CTC?

What are the Salary Components Available in a CTC?

SalaryBox helps you make employee management easy with its multifunctional solutions like staff management, selfie attendance with GPS, live tracking, attendance kiosk, and salary slips with CTC breakdown (Basic, HRA, Special Allowance, etc.).


The available salary components are as follows:

 

Basic Salary

It is the base income of an employee and consists of 35-50% of the total salary.

 

Basic Salary = CTC - (Deductions + Bonus + Allowances)

 

In addition, the basic salary also depends upon the employee designation and the industry.


House Rent Allowances (HRA)

It is an accommodation allowance provided by the employer to the employee. It is provided only if the employee is living in a rented house.


To add HRA to your Salarybox app, click here.


Special Allowance

Allowances paid to the employee for their duty performance are called special allowances. Children’s education/hostel allowance falls in this category.


To add special allowances in the Salarybox app, check here.


Travel Allowance

It is the costs incurred in travelling while on tour or on duty transfer. 

 

Here, you can learn the steps to add travel allowance in the Salarybox app.


Employees’ Provident Fund (EPF)

If any Indian employer has a minimum of 20 employees, they must get PF registration. Once the employer registers all their employees on the EPFO portal, every employee will be assigned a 12-digit Universal Account Number (UAN).


Alike Permanent Account Number (PAN), UAN remains the same throughout the employee’s life. 


Refer to the given instructions here to add EPF in the Salarybox app.


Employees’ State Insurance Scheme (ESI)

ESI is a self-funding social and healthcare insurance scheme for Indian workers. Under the scheme, the employers and workers contribute to a social insurance fund that can be utilized for granting benefits.


Here are the instructions to add it to the Salarybox app.


Labour Welfare Fund (LWF)

LWF is an aid to improve labourers’ working conditions, offer social security, and raise their standard of living. It is provided as money or other necessities for the needy.


The employee is provided various services, benefits and facilities by the employer under Labour Welfare Fund Act. Such facilities require contributions from the employer and the employee. But the contribution differs from state to state.


Professional Tax (PT)

It is a direct tax applied to individuals (deducted from gross salary) earning through employment, practising their profession, or trading. The professionals who must pay professional taxes are teachers, doctors, chartered accountants, etc.

 

Check the instructions on how to add professional tax in the Salarybox app.


For any assistance regarding the SalaryBox application, you can contact our support team at support@salarybox.in

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