Hi,
We are a software company with 25 employees. We would like to create an organizational structure and grade the employees so that their incentives and salaries can be decided accordingly. Please give suggestions on the same.
Thanks,
Payal
From India, Mumbai
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We are a software company with 25 employees. We would like to create an organizational structure and grade the employees so that their incentives and salaries can be decided accordingly. Please give suggestions on the same.
Thanks,
Payal
From India, Mumbai
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Hi Payal,
If it's a software development company, then you may grade them as follows:
Grade 1: Project Manager and other Manager categories
Grade 2: Team Leaders and other similar positions
Grade 3: Software Developers
Grade 4: Trainees
Grade 5: Support staff
The contents of the salary breakup are as follows; you can prepare it according to your needs. HRA would be 50% or 60% of the basic salary.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement
- Medical Reimbursement
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 employees not covered under ESI, as the ESI ceiling is 10000/month. Amounts above this will be covered under Mediclaim or per company 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 known as CTC.
I hope this information helps clarify your queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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508If it's a software development company, then you may grade them as follows:
Grade 1: Project Manager and other Manager categories
Grade 2: Team Leaders and other similar positions
Grade 3: Software Developers
Grade 4: Trainees
Grade 5: Support staff
The contents of the salary breakup are as follows; you can prepare it according to your needs. HRA would be 50% or 60% of the basic salary.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement
- Medical Reimbursement
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 employees not covered under ESI, as the ESI ceiling is 10000/month. Amounts above this will be covered under Mediclaim or per company 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 known as CTC.
I hope this information helps clarify your queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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Creating a Competitive Salary Structure.doc
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