What Does Each Component Of Your Salary Slip Mean?
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Salaried individuals receive pay periodically from their employer, mostly on a particular date
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Salary Slip is a document containing elements of your wage such as the basic salary, house rent allowance, performance-based incentives, etc
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Salary's components primarily fall under income or deductions. Here's a look at them
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Basic Pay constitutes 35-50% of the salary and forms the basis of other components. At junior levels, the basic tends to be high
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House Rent Allowance is given to employees living in rented facilities. It is exempted from tax up to a specific limit, provided the employee pays the rent
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Conveyance Allowance is the amount an employer pays an employee to travel to and from the workplace. It is also exempted from tax up to a specific limit
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Leave Travel Allowance is given to an employee to cover the cost while on leave. It also includes the travel expenses of the immediate family members
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Tax Deducted at Source is the amount the employer deducts on behalf of the income tax department. It is based on the gross tax slab of the employee
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Employee Provident Fund is the contribution of the employee to the provident fund for retirement. 12% of the basic salary goes towards it
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Professional Tax is a tax levied by state governments on working professionals. It is payable only in a few states like Karnataka, Gujarat Maharashtra, Tamil Nadu, etc
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