Hello All HR Professional,
Greetings for the day....
I recently joined one organization where earlier there was no HR department and I am the first employee recruited in HR. I have to start up HR Dept. from very beginning. Now, I have one question that how to decide and Fix Salary Structure. Up till now there was no salary structure and now Management wants to set salary structure of all the employees. They asked me to set salary structure with PF and ESI and without PF and ESI. My organization is Pvt. Ltd, in engineering construction field., Please suggest and help me in this regard.
Thanks to all.....

From India, Vadodara
International Corporate Trainer / Hr (od)
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Am a HR Consultant from Bangalore. I have clients in several places. I worked for Larsen & Toubro for 33 years and retired as Head of HR & Sr DGM from Construction & Mining Equipment Business of Larsen & Toubro. If your company is interested, I can act as your consultant and help you out. It is not an easy process and requires studying the current practices, your company's focus, budget allocation, organisation's growth plans, employee aspirations etc. Awaiting to hear from you and with best wishes

From India
Khushbu Bhanderi
Dear Mr. N K Sundaram,
Had gone through this post.
We are also looking forward for deciding the Salary structure in scientific way as well as prescribed by Compliance.
So can you contact and give us detail for it.
So we can work out further in detail for it.
Nilesh Dodiya
Manager - HR
KICH Architectural Products Pvt Ltd.
Rajkot (Gujarat)
Mobile : +91 93774 13638
E-mail :

From India, Rajkot

Dear HR professional,
Firstly to start the HR Department, you need to first understand the people management and organization culture.
As it is Important to understand that whatever you create and set polices or procedure it is for the team and the HR polices must carry values and human touch at it.
Before you form any rules and regulations, it is important to do the reserach and what are the best practices at current time the other companies are following so that it can be beneficial for employees and employer both as well.
To fix salary it is important to understand and you must the compliance required for your organization as per the below..
1) Type of firm..
a) Is your company is under the proprietorship
b) Is your company is Private Limited
c) Is your company is Limited
According to all three the applicability of all legal compliance are to be there....
2) Number of Manpower
PF & ESI applicability becomes liable as per the number of employees with or without the aid of power...Once your company is an Private Limited company so applicability of Employees Provident Fund Act 1952, Employees State Insurance Act 1948, Bonus Act, Gratuity, Factory Act, which all come under the Shops & Establishment Act are to be applicable.
Apart from all these, there are other things also required to be noted down at your Engineering company site..
a) At your company how many male & female workers are there,
b) How many are the skilled, Semi skilled & Unskilled workers are there
c) You need to create a Salary & Wages chart
d) You should be knowing what is the minimum wages of skilled, Semi skilled & Unskilled workers for state wise, city wise and time to to time you need to update the same.
e) For PF & ESIC, you need to first get the PF & ESIC registration number from the office of Regional Provident Fund of Commissioner Office & same for ESIC office...
g) If there are female workers more then 30 numbers then your company must have the provision of one creche with trained care taker.
h) There must be a medical room with one medical in-charge nurse.
i) Lockers, Canteen, tranport, proper working conditions should be there...
This is a very vast area, so please tell your friend to coordinate with me for detailed understanding as this I mentioned as per the factory or production unit.
But if this a a service industry then there applicability are little different....

If you need any further detail for PF & ESI then one needs to coordinate with me as this is very vast nomincation form, declaration form, PF & ESI code, monthly, half yearly and annual return with 3CA form..

From India, Delhi

Thanks a lot Mr. NK SUNDARAM for your kind response and reply. Actually for your this proposal, i need to ask my Management. then only i can say anything. So i will ask about it and will let you know. Thanks again...
From India, Vadodara

Dear Ms. Poojasinha09, Thanks a lot for your detail explanation. we are into service industry and its Pvt.Ltd company. Thanks ...
From India, Vadodara

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