Dear Sir/ madam, Could you please Explain about how to decide Salary Structure & How to Decide pay Elements, Thanks & Regards, Shripad Mokashe
From India, Pune
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From India, Pune
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Hi Shripad,
The contents of the salary breakup are as follows. You can prepare it according to your preference. HRA would be 50% or 60% of the basic salary.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement per Month
- 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 is provided to employees not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Any amount exceeding this will be covered under Mediclaim or will depend on the company's policy.
- Ex-Gratia/Bonus = A fixed amount as a bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also referred to as CTC.
I hope this clarifies everything. If you have any questions, please feel free to ask.
Regards,
Amit Seth
From India, Ahmadabad
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508The contents of the salary breakup are as follows. You can prepare it according to your preference. HRA would be 50% or 60% of the basic salary.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement per Month
- 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 is provided to employees not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Any amount exceeding this will be covered under Mediclaim or will depend on the company's policy.
- Ex-Gratia/Bonus = A fixed amount as a bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also referred to as CTC.
I hope this clarifies everything. If you have any questions, please feel free to ask.
Regards,
Amit Seth
From India, Ahmadabad
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Creating a Competitive Salary Structure.doc
Salary Structure.zip