It usually covers air and railway fares for travel within India. It covers the employee and his/her family’s travel expenses while on a holiday (leave from work). This allowance covers the employee’s cost of commute to and from the workplace. The share varies based on the location of the employee’s residence (metro or non-metro). This amount is again decided as 40 to 50 percent of the basic. HRA, as the name suggests, is meant as an allowance towards the rent paid by the employee. In case you receive DA, your PF will be calculated as a percentage (that is 12 percent) of the basic pay plus DA. Received mostly by government employees, it is an allowance paid to reduce the impact of inflation on the employee. It usually makes up for 35 to 40 percent of your total pay. This is because it decides most of the other contents of your pay like EPF (Employee Provident Fund) share made towards your retirement fund. This is the most important of all the other details. The main components of a salary slip include earnings and a deductions section. Here are all the terms that you see on your slip and how your salary is often split between various benefits and deductions from your the employer. The terms and headings used in the salary slip are often confusing to many. Along with the receipt of payment, we get a salary slip or payslip from our HR departments explaining the breakup of the what we receive in our bank accounts at the end of the month as “in hand salary.” Salary day is the most awaited day of the month to all of us.
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