Salary structure...breakups

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2013 lets suppose Mr A has been hired for 25,00,000 p.a. ctc

can he have following break up of salary.
comprising only of basic salary.

basic salary p.a. 22,32,142

resulting in employeers contribution to PF of Rs 2,67,858 (@12 %) and ee's contribution of 2,67,858.Since Mr A wants to divert his maximum portion of salary into PF.also can he transfer his entire salry of Rs 22,32,142 to PF.

or is it necesaary to split the salary into various heads basic, DA, HRA etc etc.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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19 March 2013 there is no rule for salary breakup
it is matter of employee and employer. if employee want full salary in basic and employer don't have any problem then it is possible
you can pay full salary in basic and PF only

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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20 March 2013 There is no specific rule for salary structure.
but its better to follow the common structure adopted in organisation.
but while forming structure, pls keep in mind all PF act, Employee ESI and Gratuity act, bonus act, income tax act etc.

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