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SKAG and Associates
Chartered Accountants

Salary Structure Builder

Compliant salary structure with 3 strategies — low, medium, high future liability.

Build a fully compliant salary structure for any CTC under the Code on Wages 2019, EPF Act 1952, ESI Act 1948, Payment of Gratuity Act 1972 and Payment of Bonus Act 1965. Compare three strategies side-by-side with full tax-friendly component breakdown, Old vs New Regime tax computation, and download a ready-to-use appointment letter.

Code on Wages 2019 effective: “Wages” = Basic + DA + Retaining Allowance, with a binding floor of 50% of total remuneration. If excluded components (HRA, allowances, bonus) exceed 50% of total remuneration, the excess is added back to wages for PF, gratuity and bonus calculations. All three strategies in this tool enforce this floor.
Total Cost to Company per year
50% HRA in Metro, 40% in Non-Metro under Section 10(13A)
Top-slab annual PT shown; Delhi, UP, Haryana have no PT
Determines statutory applicability of PF and ESI
Both employer and employee shares apply on actual Basic+DA if Yes

Three compliant strategies — side by side

All three satisfy the 50% wage-floor rule under Code on Wages 2019. Pick the one matching your cash-flow vs. retention philosophy.

Strategy comparison — pros, cons and downloads

Detailed advantages, trade-offs and one-click appointment letter for each structure.

Statutory references built into this tool

Code on Wages 2019

Binding wage floor: Basic + DA + Retaining Allowance ≥ 50% of total remuneration. Excluded allowances above 50% are added back to wages.

EPF Act 1952

12% employee + 12% employer on Basic+DA. Wage ceiling ₹15,000/month. EPS 8.33% of employer share. EDLI 0.50%. Admin 0.50%.

ESI Act 1948

0.75% employee + 3.25% employer on gross. Applicable only if monthly gross ≤ ₹21,000 and headcount ≥ 10.

Gratuity Act 1972

15 days’ wages per completed year of service. Vests at 5 years. Accrual: 4.81% of Basic+DA monthly. Cap ₹20 lakh.

Bonus Act 1965

Min 8.33% — max 20% of Basic+DA. Applicable if Basic+DA ≤ ₹21,000/month. Notional wage floor ₹7,000.

Income Tax Act 1961 (FY 2025-26)

HRA exemption u/s 10(13A). LTA u/s 10(5). Books, internet, meal u/s 10(14) / 17(2). New Regime default; Old Regime selectable in Form 12BB.

Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.

Other Labour Law Tools

Minimum Wages Calculator

State-wise minimum wages by skill category and industry.

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Gratuity Calculator

Payable gratuity under the Payment of Gratuity Act, 1972.

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Bonus Eligibility & Calc

Bonus payable under the Payment of Bonus Act, 1965.

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