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PSA
Hi, I wanted to understand if I can have the basic pay percentage as a part of CTC different for some employees? We now have a basic pay of 70% which is a lot of unnecessary cost to the company and we wanted to check how to reduce it?
From India, Mumbai
nanu1953
334

Yes you can make different % of Basic wrt CTC for different employees. For administrative convenience it will be better same % of basic for same category of employees.

You may fix the basic pay between 45% to 55% of CTC for different category of employees.

S K Bandyopadhyay ( WB, Howrah )
CEO -USD HR Solutions
+91 98310 81531
skb@usdhrs.in

From India, New Delhi
raghunath_bv
156

Hi,
Some factors to consider are the specific job requirements, market competitiveness, and the overall compensation philosophy of the organization. It's important to balance the need for cost control with ensuring that pay levels remain competitive and aligned with the value that each employee brings.

I would suggest conducting a thorough analysis of your current compensation framework, benchmarking against industry standards, and exploring alternative structures that could strike the right balance. This may involve lowering the basic pay percentage while potentially increasing variable or performance-based components.

Thanks

From India, Bangalore
PSA
Okay. I did not know that I could have different basic % for different categories of employees. Thank you for this.
From India, Mumbai
PSA
For comparing with our peers, we have been giving a very very high basic %. Our consultant told us that we need to get all our employees to be okay with that first by getting their signs. Is this the only way how we can change the entire firm's basic pay %?
From India, Mumbai
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