Compensation and Reward Management Akshita Sharma E-06 (PRN: 18020441037)

ASSIGNMENT 1

SECTOR : RETAIL
COMPANY NAME: Future Group

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Compensation and Reward Management Akshita Sharma E-06 (PRN: 18020441037)

STANDARD EARNINGS :

BASIC PAY: Rupees 1306, It is used in deciding the house rent allowance, PF amount, accommodation perquisite and
other such perquisites. It is fully taxable. It is generally 35-40% of the CTC which is ideal.

HRA: Rupees 784, House Rent allowance. Location being Vapi, Gujarat, it comes in Cities falling under Z (population of 5
lakh & below) category. For Cities under ‘Z’ - it is 8% of the basic pay

Conveyance Allowance: Rupees 697, it is also called transport allowance offered to the employees of a company to compensate for
their travel from residence to and from respective location. It is fully exempted ( because it is below rupees 1600 p.m.)

Adhoc Allowance: Rupees 2482, This allowance is paid for unexpected expenses.
Cash Risk Allowance: Rupees 346, It is presently given to employees engaged in hazardous duties or whose
work will have deleterious effect on health over a period of time.
Weekly perk incentive: Rupees 1025, given generally to motivate the employees

Per Piece incentive: Rupees 1148, Amount given on the basic of ‘work’ done.

Company’s Contribution to PF: Rupees 48, Contributes 8.33% of the basic salary.

Company’s contribution to EPS: while 8.33% out of the total 12% of the employer's contribution is diverted to the EPS or
pension scheme and the balance 3.67% is invested in EPF.

Company’s contribution to ESI: Employee State Insurance Corporation(ESIC) is deducted on gross salary which is 1.75%
from the employee contribution & 4.75% from the employer contribution.

DEDUCTIONS
PF: rupees 157, It constitutes 12% of basic pay and dearness allowance. The contribution is made both by the employer
and the employee. The contribution made by the employee is only mentioned in the salary slip.

ESI: Employee State Insurance Corporation(ESIC) is deducted on gross salary which is 1.75% from the employee
contribution & 4.75% from the employer contribution.

IncomeTax: Rupees 0, The state government levies tax on salaried individuals. The states which levy the income tax are:
Odisha, Tripura, Madhya Pradesh, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Karnataka, Bihar, West
Bengal, Assam, Chhattisgarh, Kerala, Meghalaya, and Sikkim. It differs from state to state.

Labour Welfare Fund: Rupees 3, is a statutory contribution managed by individual state authorities. It is an aid in the
form of money or necessities for those in need.

Advance given expenses: Rupees 168, or simply an advance, is the part of a contractually due sum that is paid or
received in advance for goods or services, while the balance included in the invoice will only follow the delivery.

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Compensation and Reward Management Akshita Sharma E-06 (PRN: 18020441037)

TOTAL
Total Deduction: Rupees 1072, Adding up all the deductions for the month i.e. ( PF+ESI+ PROVISIONAL/Income TAX) is
gross deductions

Net Salary: Rupees 7243, Gross Pay minus Gross Deductions is Net Pay. Net salary, more commonly known as Take-Home
Salary, is the income that the employee actually takes home once tax and other such deductions are carried over with. It
refers to the in-hand figure that is calculated after deducting Income Tax at source (TDS) and other deductions as per the
relevant company policy.

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