salary to be paid in different cities

hi,
we are trying to recruit people for 9 different major cities in india for a similar profile. as the cost of living in these cities are different i am finding it difficult to come out with a clear salary structure. is there is a base on which is should work or is that i can just pay them a percentage of salary higher what they were earning in those cities.

Hi Atul,

What you are looking for is daunting task in India because you may classify these cities into Grade A,B,C,D depending on economic size and cost of living as per government notifications.

You have to also determine the salary structure consist of Base Salary, Allowances, Benefits, Perks to design total compensation package. Then you may devide these cities grades in percentages for example:

Grade A cities = 100% of salary grade code
Grade B cities = 80% of salary grade code
Grade C cities = 70 % of salary grade code
Grade D cities = 60 % of salary grade code

You may suitably alter the distributration of above percentages working on practical assumptions to adjust percentage.

Basic (As per salary grade structure depending hierarchy)
Fixed Allowances
DA = 25 % of Basic
HRA = 30%of Basic
CCA/Transportation = 10% of Basic
Medical = 5% of Basic
School = 2% of Basic
Operational Allowances
Shift Allowance
etc

I hope above suggestion will work...........

Regards

sawant