Struggling with Salary Breakup? Seeking Advice on Standardizing for Senior Hires

Hi All,

I am working with a Pharma company. They do not have any standardized salary break-up system. However, I am facing a problem when new joiners (Senior-level persons) ask for the salary break-up.

Could someone please advise me on how to standardize this? What are the basic components of salary, and how can this be structured so that both the company and employees are satisfied?

Thank you in advance and looking forward to receiving guidance from seniors.

Regards, Ruchika Sharma

For example, CTC - 480,000 INR, which is 40,000 per month.

Components of Salary:

• Basic is calculated between 30% to 60% based on the company or designation, with the standard being 35% to 40% of CTC.
• HRA is calculated on the basic salary as follows: for rural areas - 20% of basic, non-metro - 30% to 40% of basic, and metro - 50% of basic.
• MA - lump sum
• TA - lump sum
• SA - Adjustable amount (Gross salary - (basic + HRA + MA + TA))

Gross salary - CTC - (Employer's PF / and annual benefits like LTA, MEDICLAIM, etc).

Now, the monthly break-up amounts to 40,000.

Breakdown of 480,000 LPA

The total package is 480,000 LPA, which translates to 40,000 per month.

Regards

Can I have details of the salary perks for senior levels so that I can send you an Excel format?

Hello,

I would like to inquire, can the basic calculated change every year? Suppose the basic amount given in one year is 1.5L, can it be reduced to 90 in the next fiscal year, with the remaining balance put in as "Other allowances"? I work for an NGO and am just trying to understand the structure that can be formulated.