New to HR: How Do I Manage Employee Salary Structures and Benefits?

Dear All,

I am new in the HR field and confused about how to maintain the salary structure of our employees in my organization's HR department, as I am also new. Please help me with how I should prepare their revised salary, CTC, PF, and Bonus.

Thank you.

Hi Pallavi,

Do you have technology deployed at your firm? If yes, you could maintain it on the payroll module. Otherwise, you could make use of Excel. However, that would be a tedious process unless you have a defined salary structure for employees at specific levels.

Regards...

Hi Pallavi,

Attached is a sample salary structure for your reference.

Thanks

Hi Sumit,

Thanks for your reply. It was very useful for me, but I have one doubt. How should I maintain the revised salary records and which software is good? Our organization is considering purchasing a software package.

Hi Pallavi,

There are a lot of software packages, and I can suggest the best fit as per your requirements and budget if you can provide me with a bullet point idea. Please do write back for any other queries as well!

Thanks.

Hi Sumit,

Thanks for reaching out. Our organization was established in 2006, and currently, we have 25 employees, some on a contract basis and others on a permanent basis. Before my tenure, all records were maintained manually as there was no HR department. Now, I am maintaining records in Excel, but it is quite tedious. I am struggling to neatly organize salary breakdowns and revised salary information. Could you please suggest the best software that I can propose to my company for purchase? I am also unfamiliar with PF and related matters.

Dear Pallavi,

FYI

[B][SIZE=2][FONT=Arial]Annexure Name: Grade: Designation: Location: WEF: Monthly Payments Amount (Rs.) Basic (Max up to 25% of ATC) 1500 HRA (60% of Basic) / If CLA (will include monthly house rent & 10% interest on deposit paid by comp.) 900 Transport Allowance 800 Adhoc Allowance 2165 Food Coupons - Driver Reimbursement - Gross Per Month (GPM) 5365 GPM 5365 Gross Per Annum (GPA) = {GPM*12} 64380 PF 180 Annual Payments ESIC 94 Ex-Gratia 1500 Medical Reimbursement 0 PT 40 Leave Travel Allowance - Tot Deduction 314 Retirals Net 5051 Provident Fund as per Act (Employer's Contribution) 2160 Superannuation Fund -(Optional & only for PRIL employees) Annual Total Cost (ATC) = {GPA +Annual Payments + Retirals} 68040 Annual Total Employment Cost (ATEC)={ATC +Reimbursable benefits} 68040

Affiliation Perks House Loan Interest Subsidy - On confirmation - Gratuity (As per Act) accruable after 5 yrs (maximum payout - 350000/-) 866 Hospitalisation (Medical Insurance) floating cover for self+ spouse+ 2 children+ parents, Applicable for non ESIC members-Averaged Premium amount 0 ESIC (Employer's contribution - Applicable if GPM is less than or equal to Rs. 10000/-) 3058 Group Term Life Insurance-Premium amount 160 Life Security Plan-Premium amount - Total Cost to Company excluding Variable Pay 72124 Total Cost to Company (TCTC)={ATEC + Affiliation Perks+Variable Pay} 72124

Name: X

Deputy Manager - Human Resources

Aparajita

Dear All,

I am new in the HR field and am confused about how I should maintain the salary structure of our employees in my organization's HR department. I am also new. Please help me with preparing their revised salary, CTC, PF, and Bonus.

Thank you.

Dear all,

Can you inform me of the amount I will get after withdrawal? 500/- per month has been deducted for 11 months. The basic amount was 4500/-

With regards,
Samir

Dear Friends,

You can also maintain an Excel sheet for the salary record. In Excel, you can keep the record up to the current year.

Hi Ashish,

PT is deducted in some specific states only; therefore, it's not mentioned here. This sheet is basically for the Delhi/NCR Guys.

Hi Pallavi,

You can take the information from Sumit's email. Everything is mentioned in her file, and it's really good.

Hi All,

I am new to this forum. I am working as Head Specialization-HR (Faculty) in a Management College in Pune. I would like to work as a freelancer in recruitment so that after gaining some experience, I may shift to the industry. Can anyone please suggest how to go about this?

Regards, Nidhi Khare

Hi Summit,

Can you please confirm whether Rs6,250.00 per month as conveyance is non-taxable subject to the provision of bills? If so, I would like to redesign our salary structure.

Regards,
Srinivasan

Hi Srinivasan,

It is certainly nontaxable if paid out as a reimbursement. The employee will enjoy tax benefits as this would not form a part of the taxable income of the salary. However, as an employer, the company shall pay a Fringe Benefit Tax of 6.78% on the total amount of reimbursement paid to its employees.

The best thing to do is to ask the employee about the kind of bills that he/she can provide; the most common of them are:
- Medical (Up to a limit of INR 1250 per month)
- Conveyance (Allowed bills are fuel, car driver salary receipts, vehicle servicing bills)
- Telephone (Mobile & Landline bills in the name of the employee & prepaid recharge bills)
- Books & Periodicals

One good thing about a tax-friendly salary structure is that the total amount of Reimbursements should not exceed 25% of the total gross salary of the employee.

Should you have any queries, please feel free to revert.

Thanks

Hi Nidhi,

You can start doing freelance recruiting with any good recruitment company, but almost all of them would ask you to submit a security deposit of INR 15,000 - 25,000 since they will be sharing their job portal IDs and other resources with you.

Please write back for any clarifications!

Thanks