Hello every body,
Current company I've joined doesn't hv any salary structure til date and the CEO him self transfers the fixed amount to employee personal bank accounts hence none of the employee hv'nt received any pay slip till date.
Now management has decided to stream line the entire process where when a new employee comes on board it will be easy for them and as well as for company to follow hence we would like to have salary computation in a format where any IT /product based company follows.
we have total team of 18 out of which 10 people are in to software sales in chennai, coimbattore,kerala and Mumbai and now we are going to bring new employee on board in hyderbad and Bengaluru too.
Appraisals are happened and CEO decided to give variable pay as well as incentives based on their performance and he come with a point as these are cost to company he wants incentive also to be showed in their salary structure.
My question is when the incentive varies and it is completely based on performance how can we can include this in CTC. If yes can some on you guide me how to show that with CTC
components we would like to add are base CTC+Variable pay+Incentives on monthly target+Daily allowance
Say like for 7 lacs salary which included 50 thousand as variable pay paid on quarterly basis against performance and monthly incentives based on their targets maximum of 7,000 if they achieve 100%.
Senior s kindly help in this regards.Mean while i will also try to put in and share with you.
Note: No PF deduction as of now and would like to know when we can start with PF what is the minimum number required for PF to add
Regards
Usha
From India, Madras
1Current company I've joined doesn't hv any salary structure til date and the CEO him self transfers the fixed amount to employee personal bank accounts hence none of the employee hv'nt received any pay slip till date.
Now management has decided to stream line the entire process where when a new employee comes on board it will be easy for them and as well as for company to follow hence we would like to have salary computation in a format where any IT /product based company follows.
we have total team of 18 out of which 10 people are in to software sales in chennai, coimbattore,kerala and Mumbai and now we are going to bring new employee on board in hyderbad and Bengaluru too.
Appraisals are happened and CEO decided to give variable pay as well as incentives based on their performance and he come with a point as these are cost to company he wants incentive also to be showed in their salary structure.
My question is when the incentive varies and it is completely based on performance how can we can include this in CTC. If yes can some on you guide me how to show that with CTC
components we would like to add are base CTC+Variable pay+Incentives on monthly target+Daily allowance
Say like for 7 lacs salary which included 50 thousand as variable pay paid on quarterly basis against performance and monthly incentives based on their targets maximum of 7,000 if they achieve 100%.
Senior s kindly help in this regards.Mean while i will also try to put in and share with you.
Note: No PF deduction as of now and would like to know when we can start with PF what is the minimum number required for PF to add
Regards
Usha
From India, Madras
Hi Usha
EPF
As you have 18 employees EPF is not mandatory & if interested you can avail the voluntary coverage option. Once you reach 20 employees then EPF registration is mandatory
ESIC
Your company will fall under ESIC registration and my advice is you initiate the registration immediately
PT
I hope you would have received the Professional Tax certificate
Salary Structure
It is always preferred maintain the standard salary structure as CTC (Fixed Gross Pay + Com[any contributions as benefits + Variable pay)
If required I can share the template to decide the salary structure to your email
From India, Bangalore
EPF
As you have 18 employees EPF is not mandatory & if interested you can avail the voluntary coverage option. Once you reach 20 employees then EPF registration is mandatory
ESIC
Your company will fall under ESIC registration and my advice is you initiate the registration immediately
PT
I hope you would have received the Professional Tax certificate
Salary Structure
It is always preferred maintain the standard salary structure as CTC (Fixed Gross Pay + Com[any contributions as benefits + Variable pay)
If required I can share the template to decide the salary structure to your email
From India, Bangalore
Dear Usha,
Mr. Jeevarathnam has clarified the PF-ESI & PT Points.
For CTC Structure with "Variable Componenets", I have drafted a sheet.
I have tried to upload "Excel" file, but unable to do so (I faced this prob. earlier also).
You pls check the format in PDF file, if it meets your requirements, I will share the "Excel File" in some other way.
From India, Delhi
Mr. Jeevarathnam has clarified the PF-ESI & PT Points.
For CTC Structure with "Variable Componenets", I have drafted a sheet.
I have tried to upload "Excel" file, but unable to do so (I faced this prob. earlier also).
You pls check the format in PDF file, if it meets your requirements, I will share the "Excel File" in some other way.
From India, Delhi
Hello Mr.Jeevarathnam,
Thanks for your brief reply.
Here i 've few more cocerns to mention .Management doesn't want to go with PF now and till date not deducting even professional tax hence not registered to any either professional tax or ESIC and absolutely no LOP also and employees in corporate office walks in when ever they want and take leaves as and when they need and of course work on sundays also when need arises. working style gel with more emotions rather than professional
So where i need to start my work while bringing new employee on board. No policy written and i've shared a leave policy which any IT/product based company is following as per my knowledge. Management totally disagreed and now confirmed they can give 12 days leave per year either cld be a CL/SL/ML what ever it is..... as we are very start up,not affordable and not a pay master also hence request you to suggest you the ways to satisfy the team with more employee friendly activities.
Very soon will share you the policies which I've prepared...mean while please do share me the salary structure to my email Id usha8679@gmail.com
salary structure should contain CTC (say 300000)+VP of 50,000 PA which will be paid on quarterly basis based on their performance+Travel allowance 36000(PA)+incentives 63000 per anum if 100% target achieved paid on monthly basis.
Your time is valued and appreciate your efforts in sharing knowledge to fellow members.
Once again thanks for your time.
Regards
Usha
From India, Madras
Thanks for your brief reply.
Here i 've few more cocerns to mention .Management doesn't want to go with PF now and till date not deducting even professional tax hence not registered to any either professional tax or ESIC and absolutely no LOP also and employees in corporate office walks in when ever they want and take leaves as and when they need and of course work on sundays also when need arises. working style gel with more emotions rather than professional
So where i need to start my work while bringing new employee on board. No policy written and i've shared a leave policy which any IT/product based company is following as per my knowledge. Management totally disagreed and now confirmed they can give 12 days leave per year either cld be a CL/SL/ML what ever it is..... as we are very start up,not affordable and not a pay master also hence request you to suggest you the ways to satisfy the team with more employee friendly activities.
Very soon will share you the policies which I've prepared...mean while please do share me the salary structure to my email Id usha8679@gmail.com
salary structure should contain CTC (say 300000)+VP of 50,000 PA which will be paid on quarterly basis based on their performance+Travel allowance 36000(PA)+incentives 63000 per anum if 100% target achieved paid on monthly basis.
Your time is valued and appreciate your efforts in sharing knowledge to fellow members.
Once again thanks for your time.
Regards
Usha
From India, Madras
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