The breakdown of separate sections of an individual’s net pay is referred to as salary structure. Inside the Indian payroll system, certain factors are used in order to determine a salary structure.
Basic salary: the employee’s basic compensation, which accounts for 35 percent to 50 percent of their net income.
Gratuity: A one-time payment made to retiring staff. It is determined by the number of years of employment for workers who have worked for at least five years. The act applies to most businesses with ten or more workers.
Employee Provident Fund: A monthly contribution is made by both the employer and the employee. It’s a form of employee savings plan, with withdrawals possible a month following retirement or end of work.
Prerequisites: Non-cash benefits offered to the workers, and this depends on their stated position, are known as fringe benefits. It could include a personal vehicle, rent-free housing, payment for an accident insurance policy, and other benefits as specified in the work agreement.
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