1. Rs. 96000/- pa comes to Rs. 8000/- pm.

2. If you want his PF to be deducted than you can keep his salary to minimum of 60% of gross salary, else you should keep his salary more than Rs. 6500/- as above Rs. 6500/- basic you need not to pay PF provided you fill in the form no 11.

3. Rest of the amount you can divide in the other heads of salary but keeping in mind the taxable impact of such allowances.

4. You can not add amount for Leave Encashment in his total package as it is not certain how much leaves would be balance at that time. However you can make a provision for that.

5. on Rs. 96000/- there would not be any tax implication.

I think that your doubts would be cleared to some extent.

Thanks
Anjali