What factor should be taken in to count while designing the variable compensation & what should be the ideal mix of variable & fixed compensation
From United States, Atlanta
From United States, Atlanta
Hi Rakshit,
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 40 to 60% of basic.
Fixed Components
Basic
HRA
Variable Components
CCA
Other Allowance
Mobile Reimbursement / Month
Educational Allowance
Petrol Allowance
Driver Allowance
Washing Allowance
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy.. mostly it is fixed at 1250/- permonth which is exempted from taxes...
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope it would help you to prepare the same at your end..
Regards,
Amit Seth.
From India, Ahmadabad
496The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 40 to 60% of basic.
Fixed Components
Basic
HRA
Variable Components
CCA
Other Allowance
Mobile Reimbursement / Month
Educational Allowance
Petrol Allowance
Driver Allowance
Washing Allowance
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy.. mostly it is fixed at 1250/- permonth which is exempted from taxes...
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope it would help you to prepare the same at your end..
Regards,
Amit Seth.
From India, Ahmadabad
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Variable Pay & Executive Compensation.pd f
VARIABLE PAY.doc