Salary structure for Hotel industry
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Salary structure for Hotel industry

vijiks Started The Discussion:

Can someone guide me on the salary structure for Hospitality Industry! I have just taken charge and I want to change the present system of paying consolidated salaries and restructure the payroll. The least paid salary is Rs.3000/- and the highest is 35000+.

Is it mandatory to include DA?
Is PF mandatory? What is the ceiling for PF contribution?

Also, which is the best payroll software for hospitality industry?

Your guidance will be of great help.


Regards,
Viji

parulmakkar - Member Since: Apr 2007
Hie Viji,

Its great that u have thought of revamping the salary structure of ur org. I too did the same, when i joined my org, lately.

- Firstly you have to understand how many departments are there in the hotel.
- Then try and segregate all the employees and put them in their respective heads like accounts, admin/security, purchase, sales&mktg, F&B kitchen, F&B service, housekeeping, front office, training, HR, etc.
- Sit and work out designations(u can restructure these as well, if need be) and analyse a max and min limit (consolidates) of emoluments to be given to these positions, in consultation with ur management.
- To start with, u can even use MS Excel to work out the payroll, if the staff strength is not more than 200-250.
- you can use the salary heads like - Basic, HRA (30 - 50% of basic), Conveyance allowance, education all (to staff kids), Special pay/all, night shift all etc. Deductions may be - TDS, Professional Tax(if applicable),Adcance/loan,arrears, PF (employee contribution) etc.
- Try and adjust amount under these heads for each one such that the sum of all these heads shud come in the range (and ofcourse the final amount shud be close to the one hes getting) that has been decided by u and the management.

No, DA is not compulsary. rather try and add more tax saving heads like Conveyance all (upto 800 p.m, education all, MEdiacl reimbursement etc.), sodexho meal coupons etc...

Yes, PF is compulsary, if ur org has minimum 20 ppl employed, at any given time. It is 12% of the basic amt. Its exercised when any employee has the basic amt of min. 6500 or more. For deducting PF first u have to get ur company covered unfer the PF Act. Same is the case of ESI. It has a cieling limit of 10000 basic.

I hope to some extent i have made myself clear.

Regards,
Parul.

vijiks - Member Since: Jun 2007
Thank you so much. So wonderful of you to have replied to my query and providing such useful hints. Thanks again. Regards, viji

mala murthy - Member Since: Sep 2008
can some one suggest me about the salary structure in hotel industry whether there should be any diffrence in the structure in diffrent department & what shoul be the basic salary of each employee

agnes gomes - Member Since: Oct 2009
kindly send the the salary structure in hotels if possible or the layout of the structure and the percentages

ACaracol - Member Since: Jul 2010
Hello, Please share your inputs in salary structure in the hospitality industry. I would appreciate benefits package also. Our organization will be benchmarking these. Thanks. Have a great day Ange

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