Hello Everybody,
I work for a garment export company in Mumbai. There are different grades and designations in our office which are not uniform across different departments. Is structuring required?
The salary structure followed here is what I believe is a little weird, especially the HRA part. There are different slabs for HRA for different grades, even in management grades (it's a metro, despite that).
As far as my knowledge goes, usually, the HRA is 50% of your basic in metros or whatever rent you are actually paying minus 10% of the basic. But none is followed.
The basic pay for employees in different cadres, as the grades keep moving down the ladder, keeps drastically lowering. If you give 10% or 20% of the basic as HRA, is that justified or logical?
Please provide your valuable inputs ASAP.
Also, as for leave encashment in case of earned leave, is it considered a part of basic in terms of calculating the bonus for that financial year?
Please help me with your inputs.
Waiting in anticipation.
RSG
From India, Pune
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I work for a garment export company in Mumbai. There are different grades and designations in our office which are not uniform across different departments. Is structuring required?
The salary structure followed here is what I believe is a little weird, especially the HRA part. There are different slabs for HRA for different grades, even in management grades (it's a metro, despite that).
As far as my knowledge goes, usually, the HRA is 50% of your basic in metros or whatever rent you are actually paying minus 10% of the basic. But none is followed.
The basic pay for employees in different cadres, as the grades keep moving down the ladder, keeps drastically lowering. If you give 10% or 20% of the basic as HRA, is that justified or logical?
Please provide your valuable inputs ASAP.
Also, as for leave encashment in case of earned leave, is it considered a part of basic in terms of calculating the bonus for that financial year?
Please help me with your inputs.
Waiting in anticipation.
RSG
From India, Pune
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Salary structure is a management decision. There is no rule for the percentage of basic that should be paid as House Rent Allowance (HRA). The points mentioned are the provisions of the income tax law that are normally followed as limits to make the package tax-friendly. You should take up the matter with the HR or the management of the company.
From India, New Delhi
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118From India, New Delhi
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Creating a Competitive Salary Structure.doc
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