Hi, I wanted to understand if I can have the basic pay percentage as a part of CTC different for some employees? We now have a basic pay of 70% which is a lot of unnecessary cost to the company and we wanted to check how to reduce it?
From India, Mumbai
From India, Mumbai
Yes you can make different % of Basic wrt CTC for different employees. For administrative convenience it will be better same % of basic for same category of employees.
You may fix the basic pay between 45% to 55% of CTC for different category of employees.
S K Bandyopadhyay ( WB, Howrah )
CEO -USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
337You may fix the basic pay between 45% to 55% of CTC for different category of employees.
S K Bandyopadhyay ( WB, Howrah )
CEO -USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
Hi,
Some factors to consider are the specific job requirements, market competitiveness, and the overall compensation philosophy of the organization. It's important to balance the need for cost control with ensuring that pay levels remain competitive and aligned with the value that each employee brings.
I would suggest conducting a thorough analysis of your current compensation framework, benchmarking against industry standards, and exploring alternative structures that could strike the right balance. This may involve lowering the basic pay percentage while potentially increasing variable or performance-based components.
Thanks
From India, Bangalore
Some factors to consider are the specific job requirements, market competitiveness, and the overall compensation philosophy of the organization. It's important to balance the need for cost control with ensuring that pay levels remain competitive and aligned with the value that each employee brings.
I would suggest conducting a thorough analysis of your current compensation framework, benchmarking against industry standards, and exploring alternative structures that could strike the right balance. This may involve lowering the basic pay percentage while potentially increasing variable or performance-based components.
Thanks
From India, Bangalore
Okay. I did not know that I could have different basic % for different categories of employees. Thank you for this.
From India, Mumbai
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Clubbing of allowances with basic pay under PF Act.pdf
Basic Pay for EPF Contribution-re duction not permissible.doc x