Hi, Can anyone help in designing a salary structure for a CTC of 10 lacs for a new employee we are hiring? The design has to be such that tax libility is minimized regards
From India, Mumbai
From India, Mumbai
Just basics to workout :
6 lac basic
12% pf + 15% superannuation = 25 %
Medical reimbursement as permitted ( I suppose 15000 , as of now)
LTC say 50000
ESOPS ( 1-2 lacs to adjust the figure ) ( if senior enough in position)
Gratuity / leave etc
Subsidized electricity etc , if possible\
Car in company scheme
Petrol per month quota + per month maintenance, out of petrol quota
6 lac basic
12% pf + 15% superannuation = 25 %
Medical reimbursement as permitted ( I suppose 15000 , as of now)
LTC say 50000
ESOPS ( 1-2 lacs to adjust the figure ) ( if senior enough in position)
Gratuity / leave etc
Subsidized electricity etc , if possible\
Car in company scheme
Petrol per month quota + per month maintenance, out of petrol quota
can u please send me a format about tax calculation involved with the salary like PT,It etc while considering from operator to manager level (Temp cl). how to calculate leave ,leave with and LOP as per govt norms
From India, Madras
From India, Madras
ANothr alternative is to do the folloing:
Ascertain split of fixed, variable and stock option / deffered cash. A Good mix would depend on what level the person is at (junior, mid management, senior management, C level)
Am assuming that a 10 Lakh salary would be mid management. Possible options:
70 % Fixed, 20% variable and 10% deferred cash / stock options = 7 L + 2 L + 1 L
For the fixed salary, possible structure is:
Basic = 40% of Fixed Pay
Retirals = 12% PF, 4.81% Gratuity (both as a % of basic)
HRA = 40% or 50% of basic (basis metro / non metro)
Medical = 15000 p.a.
LTA = one months basic
Conveyance = 9600 p.a.
Balance would be general allowance (i.e. 7 lakhs minus all of above components) from which employee can choose sodexo (meal coupons), professional development etc capped to the maximum available amount within the general allowance bucket.
Hope this helps!
From India, Mumbai
3Ascertain split of fixed, variable and stock option / deffered cash. A Good mix would depend on what level the person is at (junior, mid management, senior management, C level)
Am assuming that a 10 Lakh salary would be mid management. Possible options:
70 % Fixed, 20% variable and 10% deferred cash / stock options = 7 L + 2 L + 1 L
For the fixed salary, possible structure is:
Basic = 40% of Fixed Pay
Retirals = 12% PF, 4.81% Gratuity (both as a % of basic)
HRA = 40% or 50% of basic (basis metro / non metro)
Medical = 15000 p.a.
LTA = one months basic
Conveyance = 9600 p.a.
Balance would be general allowance (i.e. 7 lakhs minus all of above components) from which employee can choose sodexo (meal coupons), professional development etc capped to the maximum available amount within the general allowance bucket.
Hope this helps!
From India, Mumbai
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Creating a Competitive Salary Structure.doc
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