Hi, I have to design and develop a salary structure for 5 to 6 positions for my project. It should contain the basic components of a salary structure based on the Equitable Compensation Theory model. Can somebody help me?
Regards,
Leela
From India, Bangalore
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Regards,
Leela
From India, Bangalore
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Hi B Neelavathi,
The salary structure varies from company to company based on their C&B policies. Some of the common pay heads used are:
1) Basic - 35% - 50% of Gross
2) HRA - 40% of Basic for Non-metro & 50% of Basic for Metro
3) Con - Max Rs. 800/PM, which is a maximum of Rs. 9600 PA
4) Medical Reim - Max Rs. 1250/PM, which can be a maximum of Rs. 15000 PA
5) Spl Allow - The balance of Gross will be provided as Special Allowance
Statutory:
1) PF
Employee Contribution - 12% of Basic
Employer Contribution - 13.61% of Basic
2) ESI - Applicable to employees whose Gross Salary is less than or equal to Rs. 10000
Employee Contribution - 1.75% of Gross
Employer Contribution - 4.75% of Gross
PT - It varies from state to state
Net Salary = Gross - PF (Employee Cont) - ESI (Employee Cont) - PT
CTC = Gross + PF (Employer Cont) - ESI (Employer Cont)
Gratuity = Basic * 15/26 - It is payable to the employee who completes 5 years of service in the organization. It can be shown as a part of CTC.
If employees come under a high salary, then you can further split up the amount in Special Allowance for:
1) Food coupons
2) Car Hire
3) Petrol and Maintenance for Car
4) LTA
FBT is applicable apart from LTA.
The Variable Pay % also differs from company to company based on the C&B Policy. In my previous organization, it is 12.5% of the CTC for all departments except Sales. For sales, it will be 15%.
Regards,
M V Muthu Krishnan
99622 98084
From India, Bangalore
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4The salary structure varies from company to company based on their C&B policies. Some of the common pay heads used are:
1) Basic - 35% - 50% of Gross
2) HRA - 40% of Basic for Non-metro & 50% of Basic for Metro
3) Con - Max Rs. 800/PM, which is a maximum of Rs. 9600 PA
4) Medical Reim - Max Rs. 1250/PM, which can be a maximum of Rs. 15000 PA
5) Spl Allow - The balance of Gross will be provided as Special Allowance
Statutory:
1) PF
Employee Contribution - 12% of Basic
Employer Contribution - 13.61% of Basic
2) ESI - Applicable to employees whose Gross Salary is less than or equal to Rs. 10000
Employee Contribution - 1.75% of Gross
Employer Contribution - 4.75% of Gross
PT - It varies from state to state
Net Salary = Gross - PF (Employee Cont) - ESI (Employee Cont) - PT
CTC = Gross + PF (Employer Cont) - ESI (Employer Cont)
Gratuity = Basic * 15/26 - It is payable to the employee who completes 5 years of service in the organization. It can be shown as a part of CTC.
If employees come under a high salary, then you can further split up the amount in Special Allowance for:
1) Food coupons
2) Car Hire
3) Petrol and Maintenance for Car
4) LTA
FBT is applicable apart from LTA.
The Variable Pay % also differs from company to company based on the C&B Policy. In my previous organization, it is 12.5% of the CTC for all departments except Sales. For sales, it will be 15%.
Regards,
M V Muthu Krishnan
99622 98084
From India, Bangalore
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Hi Muthu,
This is Lakshmi, and I am joining an IT firm that is opening its branch in Bangalore. In the US, it's already established. I have to go ahead and design the salary structure for the employees in such a way that tax deductions are minimal. I am new to the Compensation & Benefits (C&B) topic. Can you help me with the components to focus on? Also, is there a standard Excel salary breakup sheet available? I would be really thankful if you could assist me in designing the structure.
Regards,
Lakshmi
lakshmibright@gmail.com
From India, Mumbai
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This is Lakshmi, and I am joining an IT firm that is opening its branch in Bangalore. In the US, it's already established. I have to go ahead and design the salary structure for the employees in such a way that tax deductions are minimal. I am new to the Compensation & Benefits (C&B) topic. Can you help me with the components to focus on? Also, is there a standard Excel salary breakup sheet available? I would be really thankful if you could assist me in designing the structure.
Regards,
Lakshmi
lakshmibright@gmail.com
From India, Mumbai
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I hope my previous post did not satisfy your question. Which is your current industry? Have you already done the grading of employees? Are you ready with all department organization charts? These are the basic elements in C&B.
From India, Bangalore
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From India, Bangalore
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Hi Lakshmi,
Sorry for the delay in replying. Have you received the answer you were looking for, or do you still need some assistance? If you could provide me with details on the components you are utilizing in your pay structure, I can offer guidance on tax deductions.
Regards,
M V Muthu Krishnan
99622 98084
From India, Bangalore
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Sorry for the delay in replying. Have you received the answer you were looking for, or do you still need some assistance? If you could provide me with details on the components you are utilizing in your pay structure, I can offer guidance on tax deductions.
Regards,
M V Muthu Krishnan
99622 98084
From India, Bangalore
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Hi Muthu,
Not a problem. Our company is taking the help of VnV Associates for designing the CTC break-up structure. We have the following slabs: 0-5 lacs; 5-10 lacs; 10-15 lacs; and 15+ lacs.
As we started the operations only in the month of February, we have considered them as consultants and from April 1st, shall consider them as permanent employees. Kindly give me an idea of what different perquisites can be provided to the employees.
Thanks,
Lakshmi
lakshmibright@gmail.com
From India, Mumbai
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Not a problem. Our company is taking the help of VnV Associates for designing the CTC break-up structure. We have the following slabs: 0-5 lacs; 5-10 lacs; 10-15 lacs; and 15+ lacs.
As we started the operations only in the month of February, we have considered them as consultants and from April 1st, shall consider them as permanent employees. Kindly give me an idea of what different perquisites can be provided to the employees.
Thanks,
Lakshmi
lakshmibright@gmail.com
From India, Mumbai
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In addition to Muthu's breakup of salary for the highly salaried individuals, the following components can be considered:
1. Children's Education Allowance - Rs. 200/- per month (Rs. 100 per child)
2. Children's Hostel Allowance - Rs. 300/- per month per child
3. Club Allowance
4. Superannuation - 15% of basic salary
The above components are tax-exempted.
From India, Lucknow
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1. Children's Education Allowance - Rs. 200/- per month (Rs. 100 per child)
2. Children's Hostel Allowance - Rs. 300/- per month per child
3. Club Allowance
4. Superannuation - 15% of basic salary
The above components are tax-exempted.
From India, Lucknow
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Dear All, Please note that the ceiling for deducting ESI is raised to 15,000/- by governement of india with effect from July 2010. Kindly deduct accordingly and update the systems.
From India, Bangalore
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From India, Bangalore
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Hi Muthkrish Sir,
I was confused about whether PF is equal for employers and employees, i.e., 12%. However, while calculating the salary structure, you mentioned:
Statutory
1) PF
Employee Contribution - 12% on Basic
Employer Contribution - 13.61% on basic
How is this 13.61%? 12% is understandable, but what about the extra 1.61%?
Thank you.
From India, Delhi
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I was confused about whether PF is equal for employers and employees, i.e., 12%. However, while calculating the salary structure, you mentioned:
Statutory
1) PF
Employee Contribution - 12% on Basic
Employer Contribution - 13.61% on basic
How is this 13.61%? 12% is understandable, but what about the extra 1.61%?
Thank you.
From India, Delhi
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