Hi HR folks,
I'm reaching out to leverage the collective wisdom of our group! I've attached a salary breakup Excel sheet I'm developing for [position title] (or [department] if position specific isn't relevant).
This is a draft for benchmarking purposes, and I'd love to get your feedback on:
Competitiveness: Does the overall compensation package (base salary + benefits) seem competitive for the current market?
Clarity: Is the breakdown of salary components clear and easy to understand?
Compliance: Are there any legal or compliance concerns with the listed components?
Any insights or suggestions you can offer would be greatly appreciated. Feel free to share your own salary structures (anonymously, of course) to help with the benchmarking process.
Thanks in advance for your expertise!
From India, Lucknow
I'm reaching out to leverage the collective wisdom of our group! I've attached a salary breakup Excel sheet I'm developing for [position title] (or [department] if position specific isn't relevant).
This is a draft for benchmarking purposes, and I'd love to get your feedback on:
Competitiveness: Does the overall compensation package (base salary + benefits) seem competitive for the current market?
Clarity: Is the breakdown of salary components clear and easy to understand?
Compliance: Are there any legal or compliance concerns with the listed components?
Any insights or suggestions you can offer would be greatly appreciated. Feel free to share your own salary structures (anonymously, of course) to help with the benchmarking process.
Thanks in advance for your expertise!
From India, Lucknow
Don't you pay HRA to those who stays in owned houses or houses owned by his/ her spouse? If an employee is residing in his own house naturally, he will not get HRA, right? Then the gross salary will change, right? How are you going to adjust the same?
Similarly, LTA is put as part of salary. Is it paid once in two years? What happens if the employee does not file proof of travel? Do you think that an employee can travel with say 19 thousand rupees?
You have put an amount which is almost equal to the basic pay as 'Supplementary allowance'. What is that? Why is it paid? Is it paid to all employees universally? Why is it called 'residual amount'? It represents residual amount after putting figures in components like basic pay HRA etc, right? That establishes that salary is decided first and you have bifurcated the same for some purpose. What is that? Reduce the basic pay so that statutory payments like gratuity shall be reduced, right?
Supplementary allowance may include leave travel allowance (an allowance paid annually but not exempted from tax), education allowance (an allowance paid for education of children of the employee), telephone allowance etc, and these allowances are part of salary for all purposes connected with labour law, like computation of gratuity. Even for IT purpose the same will be treated as salary income since it is not a reimbursement but an allowance.
What is the purpose of keeping 40% of the gross salary as basic pay? Again, there is no benefit out of it. It is okay that in respect of employees whose basic wages is more than Rs 15000, there would not be any additional cost by way of contribution over Rs 1800, but what happens if the threshold limit of salary is increased from Rs 15000 to Rs 25000? Do you think that it is the basic salary alone which will qualify for computation of gratuity?
From India, Kannur
4219Similarly, LTA is put as part of salary. Is it paid once in two years? What happens if the employee does not file proof of travel? Do you think that an employee can travel with say 19 thousand rupees?
You have put an amount which is almost equal to the basic pay as 'Supplementary allowance'. What is that? Why is it paid? Is it paid to all employees universally? Why is it called 'residual amount'? It represents residual amount after putting figures in components like basic pay HRA etc, right? That establishes that salary is decided first and you have bifurcated the same for some purpose. What is that? Reduce the basic pay so that statutory payments like gratuity shall be reduced, right?
Supplementary allowance may include leave travel allowance (an allowance paid annually but not exempted from tax), education allowance (an allowance paid for education of children of the employee), telephone allowance etc, and these allowances are part of salary for all purposes connected with labour law, like computation of gratuity. Even for IT purpose the same will be treated as salary income since it is not a reimbursement but an allowance.
What is the purpose of keeping 40% of the gross salary as basic pay? Again, there is no benefit out of it. It is okay that in respect of employees whose basic wages is more than Rs 15000, there would not be any additional cost by way of contribution over Rs 1800, but what happens if the threshold limit of salary is increased from Rs 15000 to Rs 25000? Do you think that it is the basic salary alone which will qualify for computation of gratuity?
From India, Kannur
@AishwaryaBhardwaj ... Why EPF contribution 1800 for employer why not 1950, ???? Employer paying admin charges for that employee as well so, I think that should be in CTC.
From India, Faridabad
From India, Faridabad
Dear Aishwarya,
Kindly note that without the qualification, experience, designation, it would not be prudent for us to offer opinion.
Please revert to us with these details to offer our views.
Regards
MVK
@ Kamal Singh - PF is considered @ 1800/- based on 12% of the EPF wage ceiling of Rs.15,000/-
From India, Madras
Kindly note that without the qualification, experience, designation, it would not be prudent for us to offer opinion.
Please revert to us with these details to offer our views.
Regards
MVK
@ Kamal Singh - PF is considered @ 1800/- based on 12% of the EPF wage ceiling of Rs.15,000/-
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary-Note.doc
SALARY SHEET CALCULATION.xls