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Everyone works for Money at the end of the day. As employees, you get a fixed salary on a per annum basis in return for your services to a given organization. You can be associated with any company and industry vertical. But your salary is something that keeps you going every single day because it’s hard-earned by you for your daily fixed hours of effort to that company.

Based on your total package you get a monthly salary in your account either at end of every month or at the start of the next month. But there are a lot of components associated with your monthly salary and annual package which everyone must know about.

The trends in employee payroll management have changed significantly and employees’ salary structure today is a bit more complicated and detailed as compared to what it was a couple of decades ago.

In this blog, we are going to help you decode your salary and show its various components that make up for the total amount a company has to pay you for availing of your services.

Decoding the Breakup of Your Annual Salary Structure

Your salary constitutes a large number of components which you must know as a responsible employee of a given company.

When you are hired at a company, the first thing to get to hear is your CTC also known as Cost to Company. This is the total amount of money that an organization has to spend to retain its employee in the company. You will know about this when you first apply for the job or when you get your joining letter which clearly states your CTC for the given job profile.

Now let’s breakup your CTC and look into its various components.

• Basic Salary
• Gross Salary
• Net Salary / Take Home Salary.
• Allowances
• Arrears
• Gratuity
• Reimbursements
• Provident Fund
• Insurance / ESIC
• Loans
• Income Tax
• Professional Tax

Let’s dive into each of these ones and see what each of these stands for.

Basic Salary is the primary component of your CTC which is usually a fixed amount that varies according to your profile and designation, as well as your industry and your experience. In terms of percentage, your basic salary can account for 40-50% of your CTC. It is taxable.

Next comes the Gross Salary which is the total of your basic salary and all other components/allowances combined.

The formula for gross salary = Basic Salary + Allowances.

Then comes the net take-home salary which equals subtracting all the deductions from the gross salary. It’s the amount that an employee receives in his/her bank account (also called as in-hand salary). The formula goes as –

Net Take Home Salary = Gross Salary – All the Deductions and Taxes.

 

Let’s Explore this High-Level Salary breakup in Further detail.

The section of deductions and taxes in the above formula consists of the below aspects as part of the total CTC of an employee.

• Allowances are the extra benefits that an employee receives from a company based on their designation and profile. These include aspects like House rent allowance, conveyance allowance, leave travel allowance, mobile allowance, medical allowance, dearness allowance, etc.
• Then comes Arrears. This is the amount that a company is liable to pay to their employee after rectifying any salary calculation mistakes for the previous cycle.
• Next, we have Gratuity. This is the amount that an organization pays to their employee once they have completed 5 years of continuous service with them. This component denotes a way of saying thanks to an employee from the side of the organization and is often a part of the overall CTC of the employee.
• Reimbursements are the amount that an organization pays to their employee after showing proof of spending. This is the company’s way to compensate the employee for the spending done which can be for a wide range of aspects. The type of areas covered here varies from company to company as they usually try to keep limited
  options available here and only the ones that make the most sense.
• Then we have PF also known as Provident Fund. It’s a fixed amount that the company deducts every month from your monthly Gross Salary based on your CTC and contributes towards your retirement benefit. It constitutes the Employee Share as well as the Employer Share. Applicable to companies that employ more than 20 workers and can be withdrawn only when the employee retires.

Here are some of the Other Deductions Components of Your Yearly CTC.

• Insurance / ESIC refers to the medical insurance that the company provides to the employee with 1-year validity and a maximum amount of 1 Lakh. This component may or may not apply to you based on your monthly gross salary limit.
• Next, we have loans and advances which a company gives to their employees in the form of advance monthly salary. This means if you need a loan for any reason, you can get your next month’s salary in advance after you fulfill a set of conditions defined by the organization.
• Income Tax is another component that you pay to the government and it constitutes a major chunk of your salary. It’s a tax that you have to pay based on your income bracket that goes towards government funding public services.
• Last but not least, we have Professional Tax which state governments levy on the income of salaried personnel. Before a company pays the wages to their employees, they deduct this from their Gross Salary. The final amount also depends on the income slab of the employee.

To Wrap Things Up

Salary is a crucial result of your employment with any company. Everyone must have a fundamental awareness of the various components of their salary structure.

Companies across industry verticals use high-quality cloud-based Payroll Management Software solutions to seamlessly maintain the payroll aspects of their employees. It’s highly important to roll out employee salaries on time and these cloud- based tools help to achieve those goals efficiently.

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The automobile industry was one of the fastest growing business segments that witnessed exponential growth before the pandemic began. Two Years after the pandemic has stabilized a bit, economies have started to recover and people are actively showing interest in buying their preferred automobiles.

Modern Auto dealerships have evolved a lot and the way they function have changed fundamentally. Today you will find modern software solutions integrated into their business operations that facilitate daily operations with ease and allow seamless execution of complex business-related tasks. One such tool is a Cloud-based Payroll Software Solution for Automobile Industry and Dealerships.

Top 3 Reasons Why Your Auto Dealership Needs Cloud Payroll Software

Let’s explore the use case of a cloud-based payroll software solution for the automobile industry vertical and how it can help you achieve growth and successful business operations faster for your automobile dealership.

Faster Payroll Processing with Accounting Software for Automobile Dealers

Operating an auto dealership is a capital-intensive and high-ticket business. There are a lot of taxation aspects involved as not only do the employees earn a fixed salary at an auto dealership, but they also earn a lot of commissions based on their performance for their sales target.

Having cutting-edge cloud-based Payroll Processing software for your Auto dealership business can help you manage the salary and taxation aspects of all your full-time and part-time employees. Right from TDS deductions to their income tax return forms, keep an accurate record of all the aspects so that it can be referred to easily later with payroll processing software.

Simplify the extensive and detail-oriented process of managing your team, their information, and payroll aspects to  maintain the profitability of your auto dealership business. Having an all-in-one cloud-based solution takes care of employee hiring, recruiting, managing their payroll, and post-hiring aspects too.

It not only helps you save time but also lets you make critical business decisions to steering your auto dealership towards consistent growth.

Payroll Software Solution for Automobile Industry Simplify Admin Aspects

Effectively managing the admin aspects of your auto dealership business is a time-consuming and tedious process if done manually.

Having an automation-driven payroll software set up in place for your dealership that takes care of tracking the admin areas such as goals accomplished by your employees, progress made by new hires, how better are they providing customer service, maintaining paperless documentation of every employee, etc.

This in return helps to rate every candidate based on their performance and accordingly curate their payroll (Salary + incentives) that gets synced with their trail of confidential documents.

A good quality payroll processing system can help you organize all details of auto-dealership employees in a centralized place.

Accurate Insights for Your Auto Dealership via HR Payroll Accounting Software

As an owner of an auto dealership business, you need to be on top of each employee and how they are performing according to their set KPIs so that you can maintain maximum profitability.

A cloud-based payroll software solution for your automobile industry business ensures that you get accurate and error-free insights into your employee performance and how they are performing with detailed feedback.

This can help you to figure out the level of effort given by each individual and how you can retain the best talent in your organization.

Get the Best Auto-Dealership Payroll Software from Savvy HRMS

Savvy HRMS has one of the best payroll processing software solutions for your auto dealership business.

Loaded with features, backed by automation, and created to fully revolutionize the way you do payroll processing for your auto-dealership business.

Designed with end profitability in mind, get the best technology tool for your auto dealership and see your automotive industry-based business skyrocket on the trajectory of exponential growth.

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New-Age Cloud-Based Custom Payroll Software for Manufacturing Industry

The manufacturing sector is one of the core sectors that contributes a major chunk of any country’s GDP. Be it any kind of manufacturing for physical goods, using a payroll management system for manufacturing industry businesses is not just a modern-day gimmick, but a necessary step to ramp up the growth and profitability of the business.

More revenue leads to more profits and eventually, you can be a major contributor to the country’s GDP growth if you operate a manufacturing business.

Top 6 reasons to Get Payroll Software for Your Manufacturing Business

In this Blog let’s deep dive into why using cloud-based Payroll Software for Manufacturing Industry businesses can skyrocket company growth and help achieve scalability faster.

Simplification of Complex HR Payroll Processes

Introducing modern and automation-driven cloud-based payroll management software into the ecosystem of your Manufacturing business can help you reduce dependency on spreadsheets, set up workflows that will enable the execution of complex and tedious tasks with ease, and make processing payroll aspects much easier and simplified.

When it comes to Tracking and Managing Employee Tasks in a manufacturing business and getting their payroll processed efficiently without any errors, it is often considered to be a cumbersome and stressful task.

So, customized HR payroll software based on the cloud is a master weapon you can use to fundamentally change the way you carry out operations in your manufacturing company and manage the payroll-related aspects of your employees.

 Easy Attendance Management and Payroll Calculation

Integrating a Payroll Software solution into your Manufacturing business can help you precisely track the attendance of your workers and calculate their payroll accordingly. It eliminates the chances of any errors and helps to easily calculate hours worked and overtime. This can then be used to accurately calculate their pay and manage payment complexities easily along with many other payroll-related aspects.

Moreover, the multi-shift management feature helps in easy tracking of the employee roster for your manufacturing operations. With seamless biometric integrations, you can easily calculate the total working hours of your employees in a given day, week, or month, and process their payroll accordingly.

Simplify Employee Record Management with Manufacturing Payroll Software

Payroll processing for manufacturing businesses not only includes processing the payroll every single month, but a big chunk of the use case of this type of software is to efficiently maintain employee records and information in a centralized and secure place on the cloud.

With a cloud-based Payroll software integrated into the ecosystem of your manufacturing business, you can easily do bulk uploading of employee data quickly, create and manage a master salary details dashboard that can easily store all the employee salaries in one centralized place, generate an individualized view of each of your employee profiles for regular reference, and automate employee record management tasks to eliminate manual inputs and efforts.

Streamline Managing Employee Leaves& Other Special Permissions

Having Payroll processing based HR solutions in manufacturing companies is essential for many other business-critical activities. Manufacturing businesses are not similar to service-based businesses. Daily success in business operation depends upon factors like organizing the permissions to workers for taking leaves from the company, defining the approval process for per day or half day leave, calculating their salary for the specific days when they have taken leaves, as well as calculating the incentives based on precise attendance and their performance data.

Having functionality-driven Payroll software in place ensures that these permissions are managed and approved systematically across the company hierarchy.

Any lag in a manufacturing business’s daily operations can affect revenue generation significantly. Therefore, integrating it into your company’s workflow will ensure that company finances are not affected by irregular employee leaves and absences from work due to whatsoever reason.

HR Payroll Services for Manufacturing Businesses Includes Managing Compliance

Managing various manufacturing industry-related compliance is a big part of the entire Payroll Management Process for any manufacturing company. Manually verifying the compliance can take up a lot of your time and therefore you should prefer to avoid this at any cost.

Enter Cloud-based Payroll processing Software into the picture which allows you to automate the process of verifying the statutory compliance according to the manufacturing industry guidelines. It ensures that every employee’s data and allotted processes are compliant with industry regulations.

Another role of Payroll software in the manufacturing industry is to stay on top of any changes made in the industry guidelines and compliance. Complete automation and reducing manual efforts will ultimately make it up for better payroll management.

Detailed Reporting of Your Manufacturing Business’s Payroll Aspects

Last but not least, another great benefit of having a payroll processing software system integrated into your manufacturing Business’s HR department is that it helps you to prepare detailed and comprehensive custom reports to track multiple aspects of your business’s payroll.

Get more actionable insights from your data to better manage the payroll aspects of your manufacturing company and track the finances. Prepare custom reports using parameters of your choice through pre-defined templates. One of the strongest reasons to get Payroll Processing Software for your manufacturing business.

Get the Best & Most Trusted Manufacturing Payroll Software in India

Payroll Processing Software from SAVVY HRMS is one of the best cloud-based tools that you can get for your manufacturing business. Trusted by clients across India and Abroad, manage the payroll of your manufacturing business efficiently to streamline business operations for scalable growth.

Times are changing. It’s not only just the Service Based Businesses that are leveraging the benefits of cloud-based Payroll Software Solutions. The Manufacturing Industry is also observing a paradigm shift where having a Payroll Software is considered essential to facilitate rapid growth and exponential business success.

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Empowering Hospital Staff with Payroll Software for Healthcare Industry

Streamlining Payroll Management Activities and bringing order into the operations of the HR department is essential and crucial for any industry. That includes the Healthcare vertical which covers hospitals and multiple types of healthcare institutions. The necessity of Payroll Software for Healthcare Industry including small,medium, and large hospitals and health centers is more now than it was ever before.

 What Is Payroll in Hospital? Why is it Necessary?

Every person who operates a hospital or a healthcare institution wants to bring the best productivity out of the system and integrating Payroll software made for hospitals and healthcare businesses brings them closer to seamless business operations and managing all complex payroll and related activities. It’s a sure-shot way to maximize revenue, profits, productivity, efficiency, better employee finance management, and better manage taxation aspects too.

The Healthcare sector is growing rapidly and having faced so many healthcare challenges in the past couple of years due to COVID, hospitals and healthcare institutions have geared up to not only improve their quality of service but also make changes to the way they operate their business so that everything happens on time and with complete efficiency. For this, it’s highly necessary to get quick and accurate access to employee data such as payroll, attendance and leave Management metrics and insights, their expertise, etc. Medical Payroll Software helps in achieving these goals.

The need and Importance for Payroll Software in Healthcare Industry have grown so much in recent times. Every hospital and healthcare institution calls for the need of having a highly efficient, experienced as well as empowered workforce. That’s the secret ingredient that ensures on-time best quality healthcare assistance and services. So, to manage Human Capital in the Healthcare industry which is a complex yet essential process, payroll software is the need of the hour.

Ensuring that a highly feature-rich and functionality-driven cloud-based Payroll and HR software for healthcare aspects is integrated into the ecosystem makes it easy for the hospital management to pull out critical employee data at any given time and get them access to multiple aspects and judge the employee competence.

It also helps the higher management of the healthcare institution in making and implementing crucial decisions without any hiccups.

Maintaining Human Resource Information System in Hospital is No Joke!

Manual methods of maintaining employee payroll records of your healthcare workers/employees and related aspects are extremely time-consuming and inefficient. That’s where cloud-based payroll software comes in handy.

A well-set-up human resource information system in hospitals and health centers that gives the higher management and administration quick access to employee payroll records and related aspects is a great tool to have. It not only helps to quickly roll out healthcare schemes and plans on the ground effectively but also ensures a greater success rate.

Here are some of the major challenges that Payroll Management Software can solve for a healthcare business –

 

• Since the healthcare industry is highly regulated, having an HR payroll system in place helps to maintain statutory compliance perfectly and with ease.
• Employee Engagement Software for Healthcare Industry helps to effectively manage the payroll of both in-house employees as well as remote healthcare workers.
• The tedious process of managing employee attendance, leaves, salary components, overtime calculation, tax liabilities, bonuses, incentives, etc., becomes a piece of cake.
• It acts as a single and reliable point of contact to get access to employee information for any relevant purpose.
• Helps to maintain compliance for healthcare workers as you can define certain rules in line with their payroll.
• Payroll Management Software is essential in hospitals and health centers because it acts as a centralized database for the HR department to maintain all information in one single secure place on the cloud server.
• Payroll software for healthcare industry workers enables them to claim their benefits and perks with one single portal. Each employee gets access to the cloud-based software and that helps them interact with HR seamlessly for a better experience.
• Payroll Management Software made especially for healthcare businesses helps them manage employee insurance without hassle.
• Accurately track employee working hours and Shift Tracking.

Detailed Reporting Feature Gets You into Some Interesting Insights.

Automation-driven Medical Scheduling Software with Payroll Management functionalities is truly one of the best technology tools any healthcare business can have.

One of the greatest features of having Payroll Management Software is that you get access to detailed and comprehensive reporting functionalities. You can use these features to create custom reports for your healthcare business.

Speaking precisely, get access to real-time data analytics via multiple custom dashboards into the finances and payroll aspects of your healthcare business. A payroll management system for your healthcare business helps your track key metrics and ensures you are on the same page when it comes to turnover, profits, revenue, and all sorts of financial expenditures and earnings.

Another great aspect of the reporting feature of healthcare payroll management software is that they also track all the critical forms of taxation and other business expenses. Managing business taxes as well as employee deductions for yearly taxes is cumbersome. But with automation-driven payroll software that has comprehensive reporting in-built, tracking and managing employee and business taxes becomes a piece of cake.

Last but not the least, with the reporting feature say goodbye to paper reports and. Use the flexible and cloud-based technology to get access to payroll-related data insights on a digital screen that is fetched from an online server.

 

How to Get the Best HR Software for Healthcare Payroll Processing?

A good payroll processing software for any healthcare business has all the above-listed features without any doubt.

The Cloud-Based Healthcare Payroll Processing Software from SAVVY HRMS is one of the top products that is used by hundreds of healthcare businesses across India and abroad.

Boost the efficiency and growth of your healthcare business with the best payroll software from SAVVY HRMS and take your business to new heights.