Salary Structure Design
Components of Salary#
Fixed Pay#
- Basic salary
- DA
- HRA
- Conveyance allowance
- Special allowance
Variable Pay#
- Performance bonus
- Commission
- Leave encashment
Benefits#
- Medical
- Transport
- Food coupons
Tax-Efficient Structure#
- Maximize HRA
- Include conveyance
- House loan interest
- NPS contribution
Conclusion#
Well-designed salary structure reduces tax burden.