how to formulate pay structure for employee.what variable needs to be considered.
Pay Salary formulation is a internal part of the company it is decide by the internal managent that how to formulate salary structure. Basically in pay salary formulation we include Basic + DA + HRA + Conveyance + allowances.
Basic format pay salary = 40% Basic +24% HRA + 8% conveyance + 8% other allowances = total 100% Gross Salary.
Other cases, pay structure is determined by management. Some are offering CTC which is composed of employer's PF/ESIC with gross salary.
1) BASIC we caculate 40 to 60 % from Gross salary,
2) Convences may be Rs : 800, (Eifht hundrd is tax Exmpted)
3) Medical Allowence : may be 10% of the Basic
4) The remaining amount we show as a Other allowence
I hope this is help you
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