Hello Everyone,
I will be designing salary structures for the first time for a startup organization. I have just 5 days to finalize the same. Can you help me on how to design a salary structure. How do you decide on the CTC amount. In case the CTC amount is 7.25 lacs, then how do you calculate the Basic. Once you know the basic you can calculate the remaining amounts.
Please help. Urgent.Sal
From India, Mumbai
I will be designing salary structures for the first time for a startup organization. I have just 5 days to finalize the same. Can you help me on how to design a salary structure. How do you decide on the CTC amount. In case the CTC amount is 7.25 lacs, then how do you calculate the Basic. Once you know the basic you can calculate the remaining amounts.
Please help. Urgent.Sal
From India, Mumbai
What components (allowances & other reimbursements) you want to extend to employees besides basic salary? Think of the same & them reshare your query.
From India, Mumbai
264From India, Mumbai
Hi R. ChandraKant The basic salary is calculated in a range of 30%-50% of CTC depending on the compensation philosophy of the company. Thanks
From India, Shillong
From India, Shillong
Dear Member,
As suggested by learned members before implementing/preparing any salary structure first of all you should what components you want to include (applicable) in your establishment (State). Whether PT is applicable or not in your state. Some establishment shows PF contribution as 12% (Being employer contribution in member’s PF), while some include the admin and EDLI ext. as well (Being 13.15%, as per today rate).
Moreover, first of all you should search for the options available in the Forum. You can find No. of CTC Structures with different patterns.
However, you have raised the query for an urgent solution and the forum is always ready to help / advise to its new members. Pls find attached the salary structure as reqd. by you. It can be modified as per your requirement/s.
From India, Delhi
As suggested by learned members before implementing/preparing any salary structure first of all you should what components you want to include (applicable) in your establishment (State). Whether PT is applicable or not in your state. Some establishment shows PF contribution as 12% (Being employer contribution in member’s PF), while some include the admin and EDLI ext. as well (Being 13.15%, as per today rate).
Moreover, first of all you should search for the options available in the Forum. You can find No. of CTC Structures with different patterns.
However, you have raised the query for an urgent solution and the forum is always ready to help / advise to its new members. Pls find attached the salary structure as reqd. by you. It can be modified as per your requirement/s.
From India, Delhi
Dear Pan Singh Dangwal Sir, Please guide me what is the gratuity? and what is process of gratuity deduction, and which employee is eligible for gratuity in a company forum.
From India, New Delhi
From India, New Delhi
Hello Mr Gaurav Tomar,
Sorry for the delay to answer your querry, actually today only I have gone through your post. However, pls note my points in various aspects of Gratuity:-
DEFINITION: An act to provide for a scheme for the payment of gratuity to employees engaged in “Factories, Mines, Oilfields, Plantations, Ports, Railway Companies, Shops or Other Establishments” and for matters connected therewith or incidental thereto. This Act Extends to the whole of India except State of J&K.
Concept of Gratuity:-This is a Social Security enactment. Gratuity is derived from the word “Gratuitous” which means ‘Gift’ or ‘Present’. This is a retirement benefit being paid when the employee retires or leaves the service, so that the employee can live comfortably after retirement.
Applicability: Every factory, mine, oilfield, plantation, port and railway, every shop or establishment within the meaning of any law in which ten or more persons are employed, or were employed, on any day of the preceding twelve months, or to such other establishments as the Central Govt. may, by notification, specify. If once this Act has become applicable to any establishment, it shall continue to be governed by this Act even if the number of persons employed become falls below ten.
Wages: “Wages” shall consist of Basic pay plus D.A. However, allowances like Bonus, Commission, HRA, Overtime etc. are not to be considered for calculations of gratuity.
Eligibility:- Gratuity is payable to an employee who resigns after completing at least “5 years” of service. For Gratuity payment every employee is eligible irrespective of the salary.
Formula for calculating Gratuity: Gratuity is payable @ 15 days wages for every completed year. If in last year, the service is more than 6 months, it will be counted as full year for purpose of gratuity. It is applicable only after of 5th year onwards. The general formula = 15/26*No. of service year*Last Wages drawn
Gratuity is not a deductive component. It is paid by the employer over and above the monthly salary. However, the HR can show the Gratuity as a part of CTC.
From India, Delhi
Sorry for the delay to answer your querry, actually today only I have gone through your post. However, pls note my points in various aspects of Gratuity:-
DEFINITION: An act to provide for a scheme for the payment of gratuity to employees engaged in “Factories, Mines, Oilfields, Plantations, Ports, Railway Companies, Shops or Other Establishments” and for matters connected therewith or incidental thereto. This Act Extends to the whole of India except State of J&K.
Concept of Gratuity:-This is a Social Security enactment. Gratuity is derived from the word “Gratuitous” which means ‘Gift’ or ‘Present’. This is a retirement benefit being paid when the employee retires or leaves the service, so that the employee can live comfortably after retirement.
Applicability: Every factory, mine, oilfield, plantation, port and railway, every shop or establishment within the meaning of any law in which ten or more persons are employed, or were employed, on any day of the preceding twelve months, or to such other establishments as the Central Govt. may, by notification, specify. If once this Act has become applicable to any establishment, it shall continue to be governed by this Act even if the number of persons employed become falls below ten.
Wages: “Wages” shall consist of Basic pay plus D.A. However, allowances like Bonus, Commission, HRA, Overtime etc. are not to be considered for calculations of gratuity.
Eligibility:- Gratuity is payable to an employee who resigns after completing at least “5 years” of service. For Gratuity payment every employee is eligible irrespective of the salary.
Formula for calculating Gratuity: Gratuity is payable @ 15 days wages for every completed year. If in last year, the service is more than 6 months, it will be counted as full year for purpose of gratuity. It is applicable only after of 5th year onwards. The general formula = 15/26*No. of service year*Last Wages drawn
Gratuity is not a deductive component. It is paid by the employer over and above the monthly salary. However, the HR can show the Gratuity as a part of CTC.
From India, Delhi
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Creating a Competitive Salary Structure.doc
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