M/s SKS Ltd pays to its employees the salary on the basis of Basic pay. The Gross salary of an employee consists of Dearness Allowance (D.A) and House Rent Allowance (H.R.A). The components of salary are computed according to the following terms of contract of service: • Dearness Allowance is paid @ 10% of basic pay subject to a maximum of R 5400. • HRA is computed as per the following scale: You are given Employee Identification (EmpId), Name of Employees and their Basic Pay for the month of January 2013 Payroll for the Month of January 2013 Required: Prepare payroll of M/s SKS Ltd for the month of January 2013 according to above terms of contract and layout. M/s Alpha Ltd pays to its employees the salary on the basis of Category. The Gross salary of an employee consists of Basic Salary + Dearness Pay + DA +HRA + TA+CCA. The GPF and IT are the two Deductions. The components of salary are computed according to the following terms of contract of service: Rules for payment of Basic Salary, TA, and CCA are as under: Rules for payment of DP, DA, and HRA are as under Rules for Deduction of GPF, and IT are as under: You are required to prepare a payroll statement in the given format making maximum use of cell referencing facility From the following particulars compute the salary of Mr. X for the Financial Year 2011-12 (March 2011 to Feb. 2012) 1. Basic salary (Allow any Basic salary in the pay scale of R 10000-R 325-R 15200) 2. DP is 50% of Basic Salary 3. DA (as a Percentage of Basic + DP) is declared after every six month in the month of April and October to be effective from January and July respectively. The Arrears of DA for the months of Jan to March and July to September is paid along with the Salary for the month of April and October respectively. The DA Rates w.e.f. Jan. 2010 are given in DA Rates Table below. 4. Month of Increment (from Jan. to Dec.) is dependent on Joining or Promotion Date 5. HRA is to be paid @ 30% of (Basic plus DP) to those whom HRA payable is “Yes”. 6. TA is to be paid @ R 800 PM if Basic Salary is Less than R 12000, otherwise the TA is R 1000 PM.) 7. CCA is to be paid @ R 300 PM if Basic Salary is less than R 12000/- otherwise the CCA is R 500 PM.) 8. Gross salary is the sum of Salary and all other allowances 9. Deduction: a) GPF 10% of (Basic +DP) ) subject to a minimum of R 2000/- b) IT 10% of Gross Salary 10. Net salary is Gross salary minus total deductions. The above worksheet should be generalized to the extent possible. Also compute totals for all the components of salary 4. Month of Increment July Each Year, amount of increment is 3% of (Basic Plus Grade Pay) rounded off to the next multiple of ten R provided the increment amount less previous multiple of ten R is not less than R 1/- 5. HRA is to be paid @ 30% of (Basic plus Grade Pay) to those whom HRA payable is “Yes”. 6. TA is to be paid @ R 3200 PM plus DA on TA as given in the Point Number 3 above. 7. Gross salary is the sum of Salary and all other allowances 8. Deduction: a) GPF 10% of (Basic +GP) ) b) IT 10% of Gross Salary 9. Net salary is Gross salary minus total deductions. The above worksheet should be generalized to the extent possible. Also compute totals for all the components of salary. From the following particulars compute the salary of Mr. X for the Financial Year 2011-12 (March 2011 to Feb. 2012) 1. Basic salary (Allow any Basic salary in the pay band of R 37400-67000) 2. Grade pay R 9,000/- per Month 3. DA (as a Percentage of Basic + Grade Pay) is declared after every six month in the month of April and October to be effective from January and July respectively. The Arrears of DA for the months of Jan to March and July to September is paid along with the Salary for the month of April and October respectively. The DA Rates w.e.f. Jan. 2010 are given below :