Dear All Seniors..,
I need help from you... I am recently join one of the leading engineering company in HR Department. I am here as a HR Officer. I am newly of HR Field and I know HR is like Sea...
I don't know about salary Structure and I want to know What is Salary Structure and Which is the best salary Structure for an organisation.
If, Possible then please also let me know that Why we should give best salary Structure to employee.
Please help me.. Because I have to implement Best HR Policy as soon as possible in my current organisation.
Hoping for your favorable reply.
Disha G.
HR Officer

From India, Ahmedabad
Hi Disha ,
I think you are bit confused about salary etc.
Any way i will try to answer your query .
Salary structure is the policy which a company adopts to pay its
employees towards the head salary.Like what should be the basic
what should be the allowances what should be the variable pay etc
This all constitutes a salary structure.
Regarding your question why we should give best salary structure ?
Best salary structure is one of the motivation to attract best talent in
the market.
Hope this is of some help to you .
Rajeev Dixit

From India, Bangalore
Dear Disha,
Before I try to give you some answers, please answer the following questions.
What is your background: qualifications, experience, etc.?
How large is your organization and what is your role?Do you have any bosses? Is your organization in one location or dispersed?
Have you searched the web to find out general information about the topic? If not, why not?
By searching the web I found this link

From United Kingdom

Hi Disha,
you are absolutely correct on the point of HR being as vast as sea
I hope i can help you about the salary structure.
Salary breakup is structured so as to compute for different aspect
you make monthly budget of your household, Salary breakup is similar to budgeting which a company does for you .
Basic = day to day budgeting for household
HRA = House rent , maintenance of house
DA = Food expense, other misc expenses
Travel allowance = Petrol , bus cost
PF, Gratuity = saving . Etc etc.................
This is unconventional way of my explaining you the salary breakups ......... In short salary structure is breakup of different heads that company provide to an employee in form salary
and best salary structure as already mentioned is necessary to attract talent
Hope you are clear now , in case any further explanation required please do not hesitate
Together we can and we will make a difference

From Netherlands, Group
Dear seniors,
Now i am working in hotel industry as a HR-Assistant.This is my first experience here i want to know duties and responsibilities of HR-Generalist.
Hoping for your favorable reply.

From India, Coimbatore
Dear Disha,

Salary Structure is the structure of the salary includes Basic, Dearness Allowance, House Rent Allowance, Conveyance, Medical, Special Allowance, Children Education Allowance, Uniform Allowance, City Compensatory Allowance, etc.

One can choose all or some of them to draft salary structure.

While drafting keep few points in mind :-

Basic or Basic + Dearness Allowance = Must not less then minimum wages.

House Rent Allowance = 50% for Metro Cities and 40% for Non Metro Cities

Conveyance = Rs. 800/- Per Month (Tax Free)

Medical = Rs. 1250/- Per Month (Tax Free)

Children Education Allowance = Rs. 200/- Per Child upto 2 Kids

Uniform Allowance = Must be genuine say Rs. 2000 to Rs. 3000/-

Special Allowance and City Compensatory Allowance = Balancing figures of salary.

PF is 12% of Basic + DA from employee

and 12% + 1.61% from employer's side (hope you know this)

ESI is 1.75% of Gross from Employee if salary is upto Rs. 15,000/-

and 4.75 from employer's side

Hope this will help you out

Chill HR

From India, Gurgaon
Hi Disha,

Salary structure has three aspects.

1. Calculating Basic, DA and allowances etc. etc and them. This is just a clerical task.

2. Designing the same components mentioned above from Income Tax perspective. Can save money for your company and the employees (not tax avoidance, but taking advantage of the tax provisions.) This is a professional job which will also help your company to comply with tax laws.

3. The last perspective of salary structure is the most crucial. It's to hire people at appropriate salaries (not too much - not too less) This aspect drives productivity & an intelligent HR can play a very key role in company's performance.

So choose carefully: Do you want to know just accounts side of the matter, taxation or go for the ultimate HR objectives.

Please visit HR Compensation Benchmarking Services and other related links on the site to learn more. To continue the discussion you can reach me at



From India, Bangalore
Disha ,

Welcome to the world of HR and all the best for your future endeavors.

First let us know about your company's total manpower , about statutory compliance which are applicable...

If - statutory compliance are applicable then before you who was responsible for that tasks. ???

Here, I am asking about above matter because Salary structure is heart of overall payroll system and statutory compliance.

So before create salary stature of individual learn from reference website, seniors friend about various salary parameters.

You need to know various types of components ( Basic, HRA , DA, special allowance, education allowance , deduction: pf , esic, pt and other if applicable) and its limited value for tax exemption.

still, if you are not able to define salary structure for individual then contact to nearest consultancy firm and seniors members/friends. It is very important thing because it effect on various types of statutory deduction and taxes.

For more info- find the attachment. you can edit as per your company policies.


From India, Surat

Attached Files
File Type: xls SALARY STRUCTURE.xls (22.0 KB, 371 views)

Thanks Dixit Sir...
I understand your answer and it should be helpful to me for. Thanks again...
Our company is Given Basic+ Conveyance=Gross
Take Home= Gross- PF- P.T.
So, Can I change my salary structure and can I make it as per standards... and If, I want to change the entire salary structure then What I have to do? May I take approval of the organisation? If, they given me approval then Should I have to take any legal formalities.. If, yes then please suggest me what type of legal process I have to do?

From India, Ahmedabad
Dear Simhan,
Thanks for you reply..
Please find below answer for your question.
1. I have completed my graduation in Commerce and only one year experience in HR and Administration not into pure HR.
2. Total 150 employees are working with our organisation and I am an HR Officer (You can say like HR Head) I have one bosses, he is the owner of the organisation (M.D.). We have two manufacturing unit another one is hardly 5 kilometer away from our company.
3. I have searched so many websites and I found some of the useful information. But, about salary structure i am confused. I am very week in legal part and in my current organisation I have to do all legal activities. It's a big challenge for me.
Hope above information may be useful to give proper answer.
Disha G.

From India, Ahmedabad

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