For those who do not stay in a rented home, the HRA will be fully taxed. As per Section 10(13A) of the Income Tax Act, the HRA is partially or fully tax-exempt. For employees residing in non-metro cities, the amount is estimated as 40% of basic salary. It is generally estimated as 50% of the basic salary for those living in metro cities. This is paid to employees who live in a rented home. This is a fixed component paid on top of the basic salary and varies across companies.īonus forms part of an employee’s gross salary and is offered as a reward for employee performance. It is usually around 40% to 50% of the employee’s total salaryĭepending on the industry standards, employee designation, etc. It forms part of the Cost to Company (CTC) paid by the employers to the employees towards services rendered by employees. Here are some of the common components of salary that an employee should know about: What are the What are the components of the salary structure? It takes into account all the salary components and tax deductions applicable. Therefore, to save an employee’s time and efforts, Fisdom has designed an online take-home salary calculator.įisdom’s take-home salary calculator is an automated online tool that helps an employee estimate his/her net salary post-tax. What is a salary calculatorĬalculation of salary can be trickier since it involves several aspects. Here, we will discuss take-home salary and how Fisdom’s Take-home salary can help employees in easily determining the salary that they can expect in hand. Therefore, the amount that an employer pays to the employee is different from what the employee actually receives in hand or takes home. Salary forms part of an employee’s annual income and therefore he/she must pay taxes towards it. The salary has several components and each of these can vary across employers. Generally stated in the contract and payslip of the employee. This payment is commonly known as salary. In any professional set-up, at the end of the month, an employer pays employees a pre-determined amount towards their services.

Cognizant salary slip format