Hi Guys, I'm designing a salary breakup for a startup. Inputs are welcome, as are components that can be included.

Basic, HRA, Specific allowance are minimal components, apart from this, you can include food coupon(like Sodexo), parental insurance, PF, NPS to make it tax friendly payroll

Can even include LTA and books & Periodicals

Thank you sudhir

Slabs will vary as per the salary bracket

My suggestions: • Basic, HRA, LTA, Books & Periodicals, Child Education Allowance, Entertainment Allowance, Meal Allowance (food coupons). • PF would depend on the number of employees. • NPS may be considered based on the company budget, growth plan, financial planning. • It is good to keep the break-up %age same for all, to maintain the morale of the employees and ease of the finance team.

1. https://docs.google.com/spreadsheets/d/18hKw6dPhOJ28ILqkY0l2nwT61RuoHh6ozZfA7fRLwVE/edit#gid=0 2. https://quikchex.in/salary-structures-india-need-know-2/ incentives, variable pay, performance pay, gifts, esops, stock options

Only as a point of reference, any type of reimbursement made by the employer as part of salary is being closely scrutinized by auditors and PF officials. As an effect of this, some of my prior and present clients have received audit gap reports/compliance inquiries. As a result, it has been transformed to an allowance or eliminated from the salary breakdown.

@Wristy based on your experience, once we make a base salary component with basic, LTA, HRA, acceptable allowances, and mandatory fields, comprising gross salary component with employee pf and employer pf contributions. At the bottom of the base salary, we can include reimbursement options, bonuses, incentives, and insurance employee contributions available for the employees as a monthly component and yearly component, right?

Bonus and Incentives can be included. Reimbursement are not a salary component. Insurance is an employee benefit, so it can be included as part of overall employee CTC.

Brilliant, Thank you everyone for the inputs. It actually helped.

I have another question on these lines- is there a set %age of LTA to be included in the structure? Are their any legal mandates? And LTA inclusion is purely for taxation purpose, right? @Wristy

It is for tax saving purpose only. Usually it is upto one month basic.