solutionlop.blogg.se - Excel salary slip format

This comes to you as a lump sum at a certain time of the year. Performance Bonus: Many companies give a performance bonuses to employees who are performing exceptionally well.

The amount that comes under LTA is completely tax-free. Leave Travel Allowance (LTA): This is the amount that your employer pay for your domestic travelling.

Travel Allowance: If the job of an employee is about traveling for work then companies pay travel allowances.

It is partially or completely exempted from taxes.

House Rent Allowance (HRA): HRA is provided to all employees to meet their accommodation expenses.

Overtime Allowance: As the name suggests, this is the amount which is provided if an employee has worked overtime maybe after regular working hours or during holidays, etc.

The amount of this allowance varies from company to company and also depends on the job position of an employee. In order to receive this allowance, an employee has to give sufficient proof of expenses such as medical bills and doctors’ prescriptions.

Medical Allowance: An employee receives a medical allowance for medical expenses during the period of employment.

This amount is calculated as a percentage of basic salary to mitigate the effect of inflation.

Dearness Allowance: This is the separate allowance paid to employees’.

There are many types of allowances, below we have discussed some common type of allowance that you should be aware of. It is the amount received by an individual paid by his/ her employer in addition to the salary to meet some service requirements. All other calculations are made on the basis of the basic salary.Īllowances: An allowance is an additional amount that an employee receives from an employee in addition to the salary. Ideally, it should be around 40-50% of your CTC (the cost to the company) but it can differ from organization to organization. Basic Salary: A basic salary is the core of the salary, this is the fixed amount.