I am planning to open a new IT company. Can someone please let me know how to break up the salary structure of the employee. So that the company also gets the best benefit possible & same applies for the employees. We do not have any PF no medical allowance to the employees. so please help me with this.
From India, Kolkata
From India, Kolkata
Ms. Muskann Jalan,
The best thing for you is to hire a HR person who has precisely needed perspectives and right skill sets to attune all HR requirements.Latest trend is to pay competitive salary based on industries in that region plus Variable Performance Pay yearly.You take PF and other applicable regulatory schemes into consideration right in the beginning and flexible pay package formula on Cost To Company considerations. .
If volume of work is not there at this moment, even though you should hire a HR manager or you can hire a senior consultant for designing HR manual.This person will support to build HR a right shape and thus People Pillar will be stronger and HR will easily integrate rapidly other systems & nuances to stay ahead , aligned with your objectives & aims for a futuristic organization..
Best wishes,
RDS Yadav
Labour Law Adviser
and
Director,
Future Instt of Engg and Management Technology
From India, Delhi
142The best thing for you is to hire a HR person who has precisely needed perspectives and right skill sets to attune all HR requirements.Latest trend is to pay competitive salary based on industries in that region plus Variable Performance Pay yearly.You take PF and other applicable regulatory schemes into consideration right in the beginning and flexible pay package formula on Cost To Company considerations. .
If volume of work is not there at this moment, even though you should hire a HR manager or you can hire a senior consultant for designing HR manual.This person will support to build HR a right shape and thus People Pillar will be stronger and HR will easily integrate rapidly other systems & nuances to stay ahead , aligned with your objectives & aims for a futuristic organization..
Best wishes,
RDS Yadav
Labour Law Adviser
and
Director,
Future Instt of Engg and Management Technology
From India, Delhi
Hi Muskan,
As your company is not deducting PF so the salary will be divided into below parts :
CTC Break UP Annual
Fixed Compensation :
Basic 30-50% of fixed CTC
HRA 40-50% of basic (depending on location)
Conveyance
Education
Project Allowance
Medical
Food Allowance
A. Total Fixed Components
Variable Compensation
Performance Allowance if any
B. Total Variable Component
CTC (A+B)
You can keep the other component (apart from basic and HRA) proportionally.
For e.g : suppose a person is joining and offered CTC is 6,00,000 where 5,50,000 is the fixed and 50,000 is variable.
CTC Break UP Annual
Fixed Compensation :
Basic 2,75,000 (kept as 50%)
HRA 1,10,000 ( 40% of basic)
Conveyance 86,600
Education 30,000
Project Allowance 25,000
Medical 13,000
Food Allowance 10,400
A. Total Fixed Components 5,50,000
Variable Compensation
Performance Allowance 50,000
B. Total Variable Component 50,000
CTC (A+B) 6,00,000
Hope it helps.
Thanks,
Ankita
As your company is not deducting PF so the salary will be divided into below parts :
CTC Break UP Annual
Fixed Compensation :
Basic 30-50% of fixed CTC
HRA 40-50% of basic (depending on location)
Conveyance
Education
Project Allowance
Medical
Food Allowance
A. Total Fixed Components
Variable Compensation
Performance Allowance if any
B. Total Variable Component
CTC (A+B)
You can keep the other component (apart from basic and HRA) proportionally.
For e.g : suppose a person is joining and offered CTC is 6,00,000 where 5,50,000 is the fixed and 50,000 is variable.
CTC Break UP Annual
Fixed Compensation :
Basic 2,75,000 (kept as 50%)
HRA 1,10,000 ( 40% of basic)
Conveyance 86,600
Education 30,000
Project Allowance 25,000
Medical 13,000
Food Allowance 10,400
A. Total Fixed Components 5,50,000
Variable Compensation
Performance Allowance 50,000
B. Total Variable Component 50,000
CTC (A+B) 6,00,000
Hope it helps.
Thanks,
Ankita
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Break.zip
Salary Break Up.xlsx