Hello everyone, I am a student at university. Currently, we are working on a project where we are simulating a company. I am responsible for the HR department, and my task is to establish a salary structure.
I am uncertain about how to begin. What are the key points I should consider first? Could you provide me with some ideas or examples?
Thank you.
From Netherlands, Rotterdam
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I am uncertain about how to begin. What are the key points I should consider first? Could you provide me with some ideas or examples?
Thank you.
From Netherlands, Rotterdam
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key points in making salary structure:- 1. Basic Salary 2. HRA 3. DA 4. LTA 5 PF 6 Medical
From India, Bhubaneswar
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1From India, Bhubaneswar
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First, to create a salary, you have to know about salary. Salary is the amount paid to an employee for his service. The government has established a few rules on salary, such as the Minimum Wages Act, etc. There are several components in a salary:
Earnings:
- Basic: Minimum amount paid to an employee.
- DA (Dearness Allowance): Allowance paid to the employee along with the basic salary.
- HRA (House Rent Allowance): Given as an allowance.
- Medical Allowance
- LTA (Leave Travel Allowance)
- Conveyance
- Employer PF: An indirect monthly payment credited to the employee's PF account for future benefits (not considered part of the salary as per the PF Act).
- CEA (Children Educational Allowance)
These are a few components present in salary earnings.
In Deductions:
- PF (Provident Fund): 12% on basic salary
- PT (Professional Tax as per state)
- ESI (Employee State Insurance)
I hope this information helps you.
Regards
From India, Nizamabad
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Earnings:
- Basic: Minimum amount paid to an employee.
- DA (Dearness Allowance): Allowance paid to the employee along with the basic salary.
- HRA (House Rent Allowance): Given as an allowance.
- Medical Allowance
- LTA (Leave Travel Allowance)
- Conveyance
- Employer PF: An indirect monthly payment credited to the employee's PF account for future benefits (not considered part of the salary as per the PF Act).
- CEA (Children Educational Allowance)
These are a few components present in salary earnings.
In Deductions:
- PF (Provident Fund): 12% on basic salary
- PT (Professional Tax as per state)
- ESI (Employee State Insurance)
I hope this information helps you.
Regards
From India, Nizamabad
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Thanks for your answers. I am study in Holland,i don’t know the salary rang in Europe. how many elements should calculate in it? and how to reduce the tax?
From Netherlands, Rotterdam
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From Netherlands, Rotterdam
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Dear,
To reduce taxes, you need to refer to your country's labor law or any other regulations implemented in Europe. I think that for the size and sector of the business, salary ranges are defined. On average, for London, the salary ranges from $9,000 to $70,000 for SMEs. When designing your structure, take into consideration the number of grades and the potential overlaps.
For further information, kindly contact me via email at mtabuissa@hotmail.com.
Eng. Muhammad Abuissa
From Saudi Arabia, Khobar
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To reduce taxes, you need to refer to your country's labor law or any other regulations implemented in Europe. I think that for the size and sector of the business, salary ranges are defined. On average, for London, the salary ranges from $9,000 to $70,000 for SMEs. When designing your structure, take into consideration the number of grades and the potential overlaps.
For further information, kindly contact me via email at mtabuissa@hotmail.com.
Eng. Muhammad Abuissa
From Saudi Arabia, Khobar
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To create a salary structure, you need to first define salary grades and then distribute basic salary to those grades. Let's say your grades are (1, 2, 3,...10). The basic salary should overlap, which is the best practice in a grading system. For example:
- Grade 1 = Basic $1000 to $2500
- Grade 2 = Basic $2300 to $3500
- Grade 3 = Basic $3200 to $5000
- And so on...
The "from-to" range will establish three points of the salary: Minimum, Mid, and Maximum. Thanks...
From Saudi Arabia, Riyadh
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- Grade 1 = Basic $1000 to $2500
- Grade 2 = Basic $2300 to $3500
- Grade 3 = Basic $3200 to $5000
- And so on...
The "from-to" range will establish three points of the salary: Minimum, Mid, and Maximum. Thanks...
From Saudi Arabia, Riyadh
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Dear All, Plz. find attached Salary Structure format. This structure verys Grade to Grade (from G1, G2, ...........G10)
From India, Pune
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From India, Pune
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I have attached a Wage Breakdown Structure (WBS) I created. After the different wage classifications have been created, one only needs to match a wage classification to each position on the organizational chart.
The next step after that is to calculate the total wage and benefit package for each employee using the wage classification from the WBS. Bhagwat Kadam attached a spreadsheet that shows the wages and benefits for many employees.
Because you are in Holland, you will have to research to find the typical benefit packages being offered in your country.
From United States
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The next step after that is to calculate the total wage and benefit package for each employee using the wage classification from the WBS. Bhagwat Kadam attached a spreadsheet that shows the wages and benefits for many employees.
Because you are in Holland, you will have to research to find the typical benefit packages being offered in your country.
From United States
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Hi All,
I need to devise a compensation package where the CTC is ₹10,00,000 to optimize tax savings. Kindly help me with showing a detailed breakup and the reasons how it helps in tax savings.
Thanks,
Atul Saboo
From India, Calcutta
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I need to devise a compensation package where the CTC is ₹10,00,000 to optimize tax savings. Kindly help me with showing a detailed breakup and the reasons how it helps in tax savings.
Thanks,
Atul Saboo
From India, Calcutta
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At first, you need to set up and define the salary grade, then set up the minimum basic salary for each grade. Of course, you must refer to the labor law and labor market.
Attached file for your reference definition of position and grade2007 a.xls.
Hope this will help you.
TTLUONG:-D
From Vietnam, Hanoi
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Attached file for your reference definition of position and grade2007 a.xls.
Hope this will help you.
TTLUONG:-D
From Vietnam, Hanoi
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