📝 Final Notes Before Salary Breakup Assignment
✅ You’ve now understood the components of the Indian salary breakup and how they are calculated. While formats may differ across companies, the logic stays the same.
🔍 Before creating a salary breakup, always keep these in mind:
- For low-budget salaries, ensure compliance with the minimum wages applicable in the respective state.
- Check the applicable Professional Tax rate for the employee’s location.
- Special Allowance is compulsory only in Maharashtra and is PF applicable.
- Service Weightage (only in Karnataka) applies after 1 year and adds 2% of Basic Salary to PF.
- Income Tax is excluded from offer letters and depends on employee’s investments. It’s shown only in the payslip.
- Labour Welfare Fund (LWF) is a yearly joint contribution, not mentioned in offers/revisions.
- Voluntary Provident Fund (VPF) is a tax-saving option opted only by employees and not shown in offer letters.
🚀 Now that everything is clear, let’s move on to the practical assignment!
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