Understanding the salary structure components can help any employed individual to take better decisions. Let us start with the basic salary. It is that fixed amount which is given to the employees before making any deduction. The allowances are the amount which is paid to the employees as a part of their regular duties. The gratuity is the amount given as a lump sum for people who are retiring from a company.
The professional tax is referred to as the tax, which is levied on the income of salaried professionals and employees. The EPF is the investment which is done by both the employer and the employee every month. And, finally, the ESIC cannot exceed Rs. 21,000.