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The government has specified minimum wages for specific sectors like agriculture, real estate etc. It is governed by the https://www.indiacode.nic.in.
Employers are required to issue employees a payslip. Salary is to be paid by 5th of the next month.
Salary inflation is common in India, and employees expect a increase of around 10% to 15% each year. Although this is not mandated legally, but to retain employees you need to give this hike.
Salary comprises of basic salary and some other allowances
Typically a salary will be broken up in some components. They are generally as follows.
Suppose your offer is Rs 100000/month it will be broken in the following manner:
Basic Salary | 50% | 50000 |
House Rent allowance | 25% | 25000 |
Special Allowance | 15% | 15000 |
Leave travel allowance | 10% | 10000 |
Total | 100% | 100000 |
Deductions | ||
Tax (estimated) – In India the tax is progressive. That is higher the salary higher the tax rate. | (8330) | |
Professional Tax (fixed) | (200) | |
PF contribution by employer (retirement benefit) – fixed | (1800) | |
PF contribution by employee (retirement benefit) – fixed | (1800) | |
In-hand Salary per month | 87870 | |
About Rohit Lohade
Rohit Lohade is a Chartered Accountant with 15+ years of experience. He has assisted more than 300 Gobal Companies with India Entry Strategy