Hello, I am Ashutosh and I am from Guwahati, Assam. I wish to know something, how is a salary calculated for a position. Is there any specific formula or based on minimum wages/ industry trends? How are the slabs and grades created? Can anyone guide me?

Ashutosh Sharma

From India
Dear Ashutosh,

It is not possible to give you a clear answer when your question is not both industry-specific and job-specific.
If you are a student/researcher, better browse the internet for goodreads and relevant books on wage and salary administration.

From India, Salem
Dear Sir, Thank you for the suggestions and guidance. I shall do the same, actually I too have been trying to get info about this but unable to. Sincerely, Ashutosh Sharma
From India
Dear Colleague,
As rightly guided by our Colleague Mr Umakanthan Sir, it is a subject which needs to be studied deeply for a full understanding. Sharing few thoughts:

Workmen Wages :

As far as the Workers who mostly do manual, skilled, semi skilled, unskilled, technical jobs and who are employed in " Scheduled Employment" ( list of Industries specified in the notifications) under Minimum Wages Act 1948, then their wages are determined by the Minimum Wages notifications released from time to time. There is another concept called National Floor Wage (NFW) which is the bare minimum to be paid and all Minimum Wages generally fixed above the NFW levels.

In case of large /medium size industries and Trade unions are present, then there will be "Settlements" between Employer and Employee which determines the Wages and other benefits. Some cases it is based on "Awards" passed by Labour Courts or Industrial Tribunals which are to be followed.

In case of Executives and Managerial Employees , the Compensation and Benefit is purely based on the job role, job analysis, value of job and skills required, demand in the market and market survey of compensation and benefit to retain the employees with effective components of Compensation and Benefit. Lot of Consulting firms working on this to give data on analysis on what is the :
- Job Band
- Job Value
- Level 1, 2, 3,4, 5
- Pay structure for each Band and Layer or Level etc

There are lot of information available in the websites which kindly go through. There are very good books on " Wage and Salary Administration" which gives full picture on the subject and worth to look for a good book to read and get complete knowledge on the subject.

All the Best
Doctor Siva Global HR
Tamil Nadu

From India, Chennai
Based on type of Organization, capacity to pay, prevailing rate of remuneration in the market - similar industries , market availability of candidates etc. the remuneration structure are framed by different organizations differently.

For workmen category , the basic guide line is minimum wages. But there is no harm of paying more if the organization has capacity to pay. For new organizations there is no union initially and the employees are divided into basically two categories - bargain-able staff and management staff including supervisors.

For management staff based on different grades of employee, the remuneration package may be determined basically based on market availability.

There is no specific law or rule in this regard. It is mostly common sense driven.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi

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