Dear HRS,
This post has analysed all the aspect of Salary structure.And i appreciate the way the Indu has stated her doubts by giving her work to analysed by the site membersand thanks all the contributors to this topic.
It has given me clear picture of salary structure and cleared and answered all my quries on this topic.
Once again i thank you everyone.
Regards,
Benance
From United Arab Emirates, Abu Dhabi
This post has analysed all the aspect of Salary structure.And i appreciate the way the Indu has stated her doubts by giving her work to analysed by the site membersand thanks all the contributors to this topic.
It has given me clear picture of salary structure and cleared and answered all my quries on this topic.
Once again i thank you everyone.
Regards,
Benance
From United Arab Emirates, Abu Dhabi
HI...
Different companies have different pay structure, in many companies variable pay is treated as performance bonus which will be given along with the increments based upon the reating scale.
It should be taken in to CTC, it can be shown in the TCTC as performance bonus upto 30% or 20%. But minimum will be fixed such as 5 or 10%, based upon the ratings the performance bonus will be declared.
Ritish
Different companies have different pay structure, in many companies variable pay is treated as performance bonus which will be given along with the increments based upon the reating scale.
It should be taken in to CTC, it can be shown in the TCTC as performance bonus upto 30% or 20%. But minimum will be fixed such as 5 or 10%, based upon the ratings the performance bonus will be declared.
Ritish
Dear Mr Ritish
Thank you for your inputs .I just wanted to clarify one doubt that for egif the variable pay is fixed at 20% is it mandatory to keep a part of it as fixed ?as according to the structure we have decided upon an employee is not entitled to any variable pay if he/she gets the lowest score in during performance appraisal
Please throw some light on this
Thanks and Regards
Indrani Chakraborty
From India, Pune
3Thank you for your inputs .I just wanted to clarify one doubt that for egif the variable pay is fixed at 20% is it mandatory to keep a part of it as fixed ?as according to the structure we have decided upon an employee is not entitled to any variable pay if he/she gets the lowest score in during performance appraisal
Please throw some light on this
Thanks and Regards
Indrani Chakraborty
From India, Pune
Dear Indu, Rs.1250.00 per month or Rs.15,000.00/Annum is exemted provided you can get bills/vouchers from the employees. Cheers! Rajesh Kumar.
Dear Ms. Indrani,
Annual CTC of an employee increases when the PLI is included in it. While scoring i have experienced that Managers tend to be more lenient while scoring the KRA's as they feel like taking money off an employee. In my consideration PLI is very good concept to reward performance but in case of performance where it is subjective a lot of it depends upon supervisor and situation. I have seen to many errors like Halo effect, Recency effect affecting the scoring of PLI.
Unless a company is able to devise an efficient process for PLI it will not be effective. But Alas in my experience lot of companies are not ready for the same.
Also i have seen whenever a surprise reward is given to an employee it motivates him more than monthly or quarterly PLI.
Kindly let me know your views also
From India, Delhi
Annual CTC of an employee increases when the PLI is included in it. While scoring i have experienced that Managers tend to be more lenient while scoring the KRA's as they feel like taking money off an employee. In my consideration PLI is very good concept to reward performance but in case of performance where it is subjective a lot of it depends upon supervisor and situation. I have seen to many errors like Halo effect, Recency effect affecting the scoring of PLI.
Unless a company is able to devise an efficient process for PLI it will not be effective. But Alas in my experience lot of companies are not ready for the same.
Also i have seen whenever a surprise reward is given to an employee it motivates him more than monthly or quarterly PLI.
Kindly let me know your views also
From India, Delhi
Dear Mr Saurabh
Thank you for such wonderful inputs.Thank you for reminding me about the biases of PMS.We have tried our level best to design a system which has minimum subjectivity but then again I think its not possiblke to negate the biases completely
We have also designed an incentive structure based on individual project performance with the expectation that it will increase the productivity of the employees and also bring about a positive change in the organisation
Thank you once again
Regards
Indrani Chakraborty
From India, Pune
Thank you for such wonderful inputs.Thank you for reminding me about the biases of PMS.We have tried our level best to design a system which has minimum subjectivity but then again I think its not possiblke to negate the biases completely
We have also designed an incentive structure based on individual project performance with the expectation that it will increase the productivity of the employees and also bring about a positive change in the organisation
Thank you once again
Regards
Indrani Chakraborty
From India, Pune
The xls sheet specifying the CTC is excellent. Would suggest a few changes. Details as follows:
Basic: Ideally 40% of CTC
HRA: 50%of basic for Metro others 40% to gain max income tax benefit
Medical Allowance:Rs15000/- or Rs.1250/- per month again income tax benefit
Provident fund- You can cap it at basic Rs.6500/- i.e Rs.780/- per month. This will ensure more cash in the hands of the executives.
Should you have any other specific queries please do feel free to revert back.
Regards,
Dwipna
From India, Calcutta
Basic: Ideally 40% of CTC
HRA: 50%of basic for Metro others 40% to gain max income tax benefit
Medical Allowance:Rs15000/- or Rs.1250/- per month again income tax benefit
Provident fund- You can cap it at basic Rs.6500/- i.e Rs.780/- per month. This will ensure more cash in the hands of the executives.
Should you have any other specific queries please do feel free to revert back.
Regards,
Dwipna
From India, Calcutta
Hi,
I'm Elias ,can anyone Help me ,as My employer wants to save from P.F Contribution.So what can be done in these case.As my collegue as told that if we increase the basic salary % i.e from 45 % to 60 % and above ,so that we can save the pf or is there any criteria mentioned that if your basic salary is more than 6000 ,you need not pay pf.
can any one help me .
Please reply to these mail urgently.Please reply at my Email id:
and 
Waiting for Your Answer guys.
Thanks and Regards
Elias Lobo
9960606601
I'm Elias ,can anyone Help me ,as My employer wants to save from P.F Contribution.So what can be done in these case.As my collegue as told that if we increase the basic salary % i.e from 45 % to 60 % and above ,so that we can save the pf or is there any criteria mentioned that if your basic salary is more than 6000 ,you need not pay pf.
can any one help me .
Please reply to these mail urgently.Please reply at my Email id:
Waiting for Your Answer guys.
Thanks and Regards
Elias Lobo
9960606601
hi All
I require a small clarification what should be the salary structure for take home salary of 7500/- Rs
Pl help me out inthis matter
How should i consider the ESI (1.75%)
my companents
Basic 3000
HRA 1800
conveyance 1500
others 1200
--_________
NEt Home 7500
PT 80
PF
ESI
What should be the ESI and PF Calculation for the above Package Pl heklp me out in this regard
Waiting for a reply
From India, Hyderabad
I require a small clarification what should be the salary structure for take home salary of 7500/- Rs
Pl help me out inthis matter
How should i consider the ESI (1.75%)
my companents
Basic 3000
HRA 1800
conveyance 1500
others 1200
--_________
NEt Home 7500
PT 80
PF
ESI
What should be the ESI and PF Calculation for the above Package Pl heklp me out in this regard
Waiting for a reply
From India, Hyderabad
i have an architectural firm with name "ichinen architects (p) ltd. there are 30 employees in my company. we do not have any system, and every thing is being done like "salary, increment, promotion etc" just like that. please suggest, how should i go about to make my company a successful organisation. i am willing to do the best in the market.
From India, Delhi
From India, Delhi
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Creating a Competitive Salary Structure.doc
Salary Structure.zip