Hi
We are software company with 25 employees.
Would like to make a organisational structure and grade the employees so that their incentives and salaries can be decided accordingly.
Please give suggestions on the same.
Thanks
Payal
From India, Mumbai
We are software company with 25 employees.
Would like to make a organisational structure and grade the employees so that their incentives and salaries can be decided accordingly.
Please give suggestions on the same.
Thanks
Payal
From India, Mumbai
Hi Payal..
If its a software development company then you may grade them as below-
Grade -1 Project Manager and other Manager categories
Grade -2 Team Leaders and other similar positions
Grade- 3 Software Developers
Grade -4 trainees and
Grade -5 Support staff
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
TA
Other Allowance
Mobile Reimbursement
Medical Reimbursement
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
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 must have helped you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
496If its a software development company then you may grade them as below-
Grade -1 Project Manager and other Manager categories
Grade -2 Team Leaders and other similar positions
Grade- 3 Software Developers
Grade -4 trainees and
Grade -5 Support staff
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
TA
Other Allowance
Mobile Reimbursement
Medical Reimbursement
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
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 must have helped you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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Creating a Competitive Salary Structure.doc
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