How does a salary structure help an organisation to have good salary system?Can i also have information to get the latest salary survey for indian software industries?
From India, Bangalore
5From India, Bangalore
A salary survey helps a great deal in knowing where you stand & whether you are offering your employees the industry standard salary or not. It helps you evaluate whether you need to improve your salary structure.
Here's a link to the <link outdated-removed> ( Search On Cite | Search On Google )
You have to register to get to see it.
Here's an article about the current salary structure which basically talks about how the salaries are getting stagnated.
2004 IT Salary Survey: Salaries Stagnant For IT Staff <link updated to site home> ( Search On Cite | Search On Google )
From India, Gurgaon
Here's a link to the <link outdated-removed> ( Search On Cite | Search On Google )
You have to register to get to see it.
Here's an article about the current salary structure which basically talks about how the salaries are getting stagnated.
2004 IT Salary Survey: Salaries Stagnant For IT Staff <link updated to site home> ( Search On Cite | Search On Google )
From India, Gurgaon
Hi!
The salary structure is the salary system and position hierarchy in a company. It is the basis of the company's salary rate per position, the hiring rate, the regularization rate, etc.
Salary structures change. The average life of a good salary structure is around five (5) years. After five years, you need to benchmark your rates again to the latest market data to ensure your company's compensation external competitiveness.
Moreover, without doing any adjustment in your structure after five years can already result to distortion in some positions, especially if your pay range and gaps are very small.
A good way to learn how to create your company's salary structure is to attend a course in Job Evaluation.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
(helps improve corporate governance in Asia and the Pacific Region)
From Philippines, Parañaque
The salary structure is the salary system and position hierarchy in a company. It is the basis of the company's salary rate per position, the hiring rate, the regularization rate, etc.
Salary structures change. The average life of a good salary structure is around five (5) years. After five years, you need to benchmark your rates again to the latest market data to ensure your company's compensation external competitiveness.
Moreover, without doing any adjustment in your structure after five years can already result to distortion in some positions, especially if your pay range and gaps are very small.
A good way to learn how to create your company's salary structure is to attend a course in Job Evaluation.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
(helps improve corporate governance in Asia and the Pacific Region)
From Philippines, Parañaque
I would like to make a salary structure for a trading firm i am working for. I am presently making job descriptions, can you help me to fix salary for positions.How can i get the salary structures for a trading company in UAE.How to conduct a salary survey and fix salary structure.What should be criteria i should bank on while fixing salary.Please suggest whether there is any web site which details all these things.Or if some one has done it can you give me a step by step account of how to achieve the same.
From United Arab Emirates, Dubai
From United Arab Emirates, Dubai
There are two parts of salary structure. one is how much you are going to pay. This will vary from Industry to Industry and within Industry also, from place to place.For this Company can go for salary survey or another alternative is that when you conduct interviews, keep collecting data on salaries.
Second part is under what heads you are going to pay salary or total package.For this I have few suggestions:
1. you shall have to pay Basic Pay.
For determining other components, best way is to refer to the laws of the Country you are in. I will give you an example of India:
a) In India PF beyond Rs. 6500.00 can be avoided. Best way is to have two components one as Basic Pay and another as Family/Personal/Special Allowance beyond the basic of Rs. 6500.00 (do not call it pay as on pay PF Authorities may demand deduction of PF). On this part you should not deduct PF. Now you will have flexibility. If employee wants more money to go to PF, increase his basic by decreasing Allowance and if employee wants more money in hand, increase his Allowance by reducing basic.
b) House Rent Allowance - In India HRA up to 50/60% of basic pay for Metros can be Tax free. Check for exact position and proceed accordingly.
c) In case of other perks do not refer to Income Tax only. Check for Fringe Benefit Tax (FBT) also because some perks do not attract Income Tax but attract FBT. So go only for those perks which do not attract both. Some examples are Medical Reimbursement up to Rs. 15000.00 per annum, Meal Vouchers, LTA if taken only twice in a block of four years, Uniform expenses reimbursement etc. Go only for these perks. In this part of the exercise you must consult your Chartered Accountant.
Ultimately, you have annual benefit of Bonus. If Bonus is not applicable, still you can give it on annual basis a part of which can be linked to the profitability of the Company (variable pay).
This way you will be able to make good salary structure for your Company.
KKT
From India, Delhi
Second part is under what heads you are going to pay salary or total package.For this I have few suggestions:
1. you shall have to pay Basic Pay.
For determining other components, best way is to refer to the laws of the Country you are in. I will give you an example of India:
a) In India PF beyond Rs. 6500.00 can be avoided. Best way is to have two components one as Basic Pay and another as Family/Personal/Special Allowance beyond the basic of Rs. 6500.00 (do not call it pay as on pay PF Authorities may demand deduction of PF). On this part you should not deduct PF. Now you will have flexibility. If employee wants more money to go to PF, increase his basic by decreasing Allowance and if employee wants more money in hand, increase his Allowance by reducing basic.
b) House Rent Allowance - In India HRA up to 50/60% of basic pay for Metros can be Tax free. Check for exact position and proceed accordingly.
c) In case of other perks do not refer to Income Tax only. Check for Fringe Benefit Tax (FBT) also because some perks do not attract Income Tax but attract FBT. So go only for those perks which do not attract both. Some examples are Medical Reimbursement up to Rs. 15000.00 per annum, Meal Vouchers, LTA if taken only twice in a block of four years, Uniform expenses reimbursement etc. Go only for these perks. In this part of the exercise you must consult your Chartered Accountant.
Ultimately, you have annual benefit of Bonus. If Bonus is not applicable, still you can give it on annual basis a part of which can be linked to the profitability of the Company (variable pay).
This way you will be able to make good salary structure for your Company.
KKT
From India, Delhi
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Creating a Competitive Salary Structure.doc
Salary Structure.zip