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SALARY

Prepared by
Aviram Jena

Copyright © 2008 - 2012
managementstudyguide.com. All rights
reserved.

1
Contents
Gross Salary

Net Salary
Dearness Allowance(DA)
Travelling Allowance(TA)
House Rent Allowance(HRA)
Provident Fund...
Gross Salary

 Gross Salary is the total salary received on
MONTHLY BASIS

Key Definition

Gross salary = Salary before ...
Contents
Gross Salary

Net Salary

Dearness Allowance(DA)
Travelling Allowance(TA)
House Rent Allowance(HRA)
Provident Fun...
Net Salary

Net Salary

Net Salary is gross salary less the deductions which are
made on account of statutory compliances(...
Let me explain with an example Let us say the employee earns the following per month:
• Basic Salary - INR 10000
House Ren...
Contents
Gross Salary
Net Salary

Dearness Allowance(DA)

Travelling Allowance(TA)

House Rent Allowance(HRA)

Provident F...
Dearness Allowance
Employees having fixed income suffer the
most due to rise in prices and to compensate

their loss, they...
Contents
Gross Salary

Net Salary

Dearness Allowance(DA)

Travelling Allowance(TA)

House Rent Allowance(HRA)

Provident ...
Travelling Allowance
Any allowance granted to meet the cost of
travel on tour or on transfer by the employer
to his employ...
Contents
Gross Salary

Net Salary

Dearness Allowance(DA)

Travelling Allowance(TA)

House Rent Allowance(HRA)

Provident ...
House Rent Allowance

Some times the employer does not provide
rent free accommodation but instead makes
a provision to pa...
Contents
Gross Salary
Net Salary

Dearness Allowance(DA)
Travelling Allowance(TA)
House Rent Allowance(HRA)

Provident Fun...
Provident Fund

10
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1

To encourage savings for the social security
of employees , the govt. has set up var...
Contents
Gross Salary

Net Salary

Dearness Allowance(DA)

Travelling Allowance(TA)

House Rent Allowance(HRA)

Provident ...
Gratuity
Gratuity refers to a lump sum
amount payment made by an
employer to his employee at the
time of leaving job in ap...
Contents
Gross Salary

Net Salary

Dearness Allowance(DA)

Travelling Allowance(TA)

House Rent Allowance(HRA)

Provident ...
MediClaim

Mediclaim Policy is an Insurance coverage wherein any of your Health
related hospitalization bills can be claim...
Salary ppt by Aviram Jena
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Salary ppt by Aviram Jena

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Know about gross salary, net salary, DA, TA,HRA, PF and Mediclaim etc

Published in: Economy & Finance

Salary ppt by Aviram Jena

  1. 1. SALARY Prepared by Aviram Jena Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 1
  2. 2. Contents Gross Salary Net Salary Dearness Allowance(DA) Travelling Allowance(TA) House Rent Allowance(HRA) Provident Fund(PF) Gratuity Insurance Mediclaim 2
  3. 3. Gross Salary  Gross Salary is the total salary received on MONTHLY BASIS  Key Definition Gross salary = Salary before deductions 3
  4. 4. Contents Gross Salary Net Salary Dearness Allowance(DA) Travelling Allowance(TA) House Rent Allowance(HRA) Provident Fund(PF) Gratuity Insurance Mediclaim 4
  5. 5. Net Salary Net Salary Net Salary is gross salary less the deductions which are made on account of statutory compliances(like PF, Income Tax, Professional Tax) and other dues (Like Loans and Advances taken) which you owe to the Company and Legal dues if any. It is something you get in hand and commonly refer to as Take Home Pay. Key Definition Net Salary = Salary after deductions 5
  6. 6. Let me explain with an example Let us say the employee earns the following per month: • Basic Salary - INR 10000 House Rent Allowance - INR 5000 Convyeance Allowance - INR 1000 Magazine Allowance - INR 500 Education Allowance - INR 250 Then, GROSS SALARY - INR 16750 Deductions: • Provident Fund - INR 1200 Income Tax - INR 750 Profession Tax - INR 130 Loan Deduction - INR 750 Total Deductions - INR 2830 • His Leave Travel Allowance - INR 10000 per annum Medical Reimbursement - INR 10000 per annum Premium for mediclaim - INR 1500 per annum PF- Management Contrib.-INR 16332 per annum Then, CTC (Cost to Co.) - INR 2,38,832 per annum. Then, NETT SALARY - INR 13920 CTC = Monthly Gross Salary X 12 + Annual benefits (INR 37832) 6
  7. 7. Contents Gross Salary Net Salary Dearness Allowance(DA) Travelling Allowance(TA) House Rent Allowance(HRA) Provident Fund(PF) Gratuity Insurance Mediclaim 7
  8. 8. Dearness Allowance Employees having fixed income suffer the most due to rise in prices and to compensate their loss, they are paid D.A. So D.A is nothing but an addition salary and it is fully taxable. Sometimes it is mentioned that : 1. D.A enters into pay for service benefits. 2. D.A enters into pay for retirement benefits. 3. D.A is given under the terms of employment. 4. Dearness pay. Thus, it is treated as part of salary for certain purposes such as provident fund, value of rent free house, HRA, bonus, gratuity, leave encashment 8
  9. 9. Contents Gross Salary Net Salary Dearness Allowance(DA) Travelling Allowance(TA) House Rent Allowance(HRA) Provident Fund(PF) Gratuity Mediclaim 9
  10. 10. Travelling Allowance Any allowance granted to meet the cost of travel on tour or on transfer by the employer to his employee. It is exempted upto actual expenditure incurred for the purpose of employment. Excess , if any, will be taxable. 10
  11. 11. Contents Gross Salary Net Salary Dearness Allowance(DA) Travelling Allowance(TA) House Rent Allowance(HRA) Provident Fund(PF) Gratuity Mediclaim 11
  12. 12. House Rent Allowance Some times the employer does not provide rent free accommodation but instead makes a provision to pay some amount in cash, so that the employee may be compensated to some extent as far as rent is concerned. The amount of cash paid is known as house rent allowance. 12
  13. 13. Contents Gross Salary Net Salary Dearness Allowance(DA) Travelling Allowance(TA) House Rent Allowance(HRA) Provident Fund(PF) Gratuity Mediclaim 13
  14. 14. Provident Fund 10 9 8 7 6 5 4 3 2 1 To encourage savings for the social security of employees , the govt. has set up various kinds of provident fund. The employee contributes a fixed percentage of his salary towards these funds and in many cases employer also contributes. The whole contribution along with interest is credited to employee’s account. He will get payment out of this fund at the time of retirement and at some other important occasions. If the employee dies , his heirs will get the full payment. Provident funds are of four types: 1. Statutory provident fund 2. Recognized provident fund 3. Unrecognized provident fund 4. Public provident fund
  15. 15. Contents Gross Salary Net Salary Dearness Allowance(DA) Travelling Allowance(TA) House Rent Allowance(HRA) Provident Fund(PF) Gratuity Mediclaim
  16. 16. Gratuity Gratuity refers to a lump sum amount payment made by an employer to his employee at the time of leaving job in appreciation of his long and loyal services. Earlier it was a voluntary payment but now it has become a sort of compulsory payment for govt. employees, semi govt. employee and all other employees working in banks, colleges, factories etc. 16 16
  17. 17. Contents Gross Salary Net Salary Dearness Allowance(DA) Travelling Allowance(TA) House Rent Allowance(HRA) Provident Fund(PF) Gratuity Mediclaim 17
  18. 18. MediClaim Mediclaim Policy is an Insurance coverage wherein any of your Health related hospitalization bills can be claimed from the insurance company. There are two different ways to get your bills claimed either by cashless facility i.e your bills are directly paid to the hospital or you can pay your bills in the hospital and get an reimbursement after submission of the same to the insurance company. Mediclaim policy helps employee for take the benefit of medical treatment. Employee’s come under it who pays amount to insurance company 18

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