Better Salary Structure - Xls Download - CiteHR
Finance, Hr, Sectarial Practices, Law And
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Hi All,
Very recently i have joined in a small financial organization as an HR- Admin with an employee strength of 18. HR role is new to me. The present salary structure is furnished below,
Other Allowance
Professional Tax
My boss wants a better structure. So plz friends and seniors help me. I want speedy replies as i need to submit it by today only.
Thanks and regards,
Rima Mitra


Dear Rima, Every company has their own rules and regulation. Just like this salary structure is also different as per company.
Dear Rima,

Please try this:

(A) FIXED PAY (Includes Basic, HRA, Conveyance, Special Allowance, & benefits like Medical, LTA, Uniform Allowance, Telephone allowance etc). This may be up to 70% of the CTC. (CTC is the total sum of salary, allowances and benefits agreed to an employee at the time of appointment).

(B) VARIABLE PAY: 30% of CTC (Includes Performance Incentive/Bonus; Food Coupons; Gratuity etc.)

Fixed pay is payable on monthly basis. Out of the fixed pay components, except Basic salary, tax rebate is applicable if these are made as reimbursement as per limit fixed under IT Rules. You may refer to the IT Act/ Rules.

Again you may bifurcate the CTC as under:

Basic salary = 40 /50% of the CTC

HRA @ 40% of the Basic

Conveyance = 800 p.m.

Special Allowance =CTC-(Basic+HRA+Conv+Medical+LTA+Uni.All+Tel All+V.P)

Medical = 1250 p.m.

LTA = 10% of Basic p.m

Uniform Allow = 2500 p.m. (Max)

Telephone Allow = 1000 p.m. (max)

Variable Pay = 30% of CTC

The above structure may be relevant in senior position / or those who draws a CTC of 5.00 lacs and above. For others, you may fix Basic, HRA, Conv. & Special Allow + certain portion of CTC as Variable Pay.

In certain organization, PF - Employer contribution (12% of Basic) is treated as part of CTC. Again certain orgn only pays 780 towards employer contribution (pl refer to PF rules). Gratuity equivalent to 4.81% of Basic is also considered as part of CTC.

While fixing the salary structure, one needs to refer to the statutory compliance part + I.T. rules.

Hope, the above clarifies your query.

Dear Rima,
First decide if your company will increase the salary according to new structure or will have to be managed within the overall budget set out for pay and allowances.
Please work out from the accounts as to how much is paid to the staff (Including bosses) on account of Salary (Gross - including allowances like CCA, HRA, DA, others), Employer contribution towards EPE & ESI, Food, OT, Conveyance, Telephone, Liveries, LTA, Health care, Refreshments, Taxes (paid on behalf of employees), and all other such allowances. Add some percentage for unforeseen expenses.
Sum them up and work out the annual expenditure on all these. Thereafter you know how much to incur.
Make attractive CTC (Cost to company) Packages. Please ensure the Carry Home Salary may not come down from the present level.

Dear Rema, sending the new salary structure. pls try this.

Attached Files
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File Type: xls Salary structure.xls (20.5 KB, 751 views)

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