Variable compensation

What factor should be taken in to count while designing the variable compensation & what should be the ideal mix of variable & fixed compensation

Hi Rakshit,

The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 40 to 60% of basic.

Fixed Components
Basic
HRA

Variable Components
CCA
Other Allowance
Mobile Reimbursement / Month
Educational Allowance
Petrol Allowance
Driver Allowance
Washing Allowance
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy.. mostly it is fixed at 1250/- permonth which is exempted from taxes...

EX-Gratia/Bonus = A fixed amount as Bonus

Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia

Annual Total Cost = AFGC + PF+ESIC

Annual total cost is also called as CTC.

Hope it would help you to prepare the same at your end..


Regards,

Amit Seth.

Hi Amit

I am looking for Pay for Performance, not for the components of the salary.