Salary Structure - what would be the base salary and what would be the incentives?

I have confusion regarding salary structure.I am working as an asst. HR in an international call center and my senior told me to design a salary structure where the base salary should be very less and incentives (which includes attendance allowance, food allowance, performance allowance and transport allowance etc.) should be more interims of figures. So can anybody help me out if i want whole in total for Rs. 8000 and Rs.7000, then what would be the base salary and what would be the incentives?
I have tried to mange form my side. You can check the attachment for that.But I am looking for best option.
Regards,

Dear Shweta
the basic salary fixed for an employee also depend on the prevailing minimum wages of the state. in which State of India your call centre is located?
regards
dhanesh

Swetha,
First of all Wish you a Happy New Year.
May be you are at any region in India, Basic salary is fixed between two variables i.e. 30% min to 50% maximum on gross salary.
Gross Salary in general Includes:
1. Basic (30% to 50% of Gross)
2. HRA (40% of Basic)
3. Medical Allowance (Rs.1250 pm)
4. Transport Allowance or Conveyence (Rs. 800 pm)
5. Special Allowance (Gross - (1+2+3+4))
Let me know for any clarifications on my personal ID: [Login to view]

Dear Shweta,
i have prepared a salary str for u, check it out and revert for any doubts.
This is a rough draft only, every company/org will have thier own policies in Salary str it varies from org to org. so u pl try to understand the policies of your orgn then it will be easy for you to do the job.
jai

Mr.Ranjith,
i have clarification for you, it seems that is the salary str of your org but it may not be the same for alll the others deopends on the policy of the org TA,MED Allowances will be fixed.
Pl clarify me if iam wrong.
jai

Hi Friend,
I want to put some comments in this issue. HR Professional should be like a bridge between employer and employee so you have to play a great role.

We can easily understand why your senior is asking you to prepare this kind of structure. As basic and DA will affect in Statutory compliances, Gratuity, EL, Bonus.One thing you have to understand well, HR should be a care taker for employees.

Do fair work for employees. Now in PF there are checking the pay structure and asking us to pay 50-60% to basic and DA, otherwise you will be facing the legal issues. Please discuss the issue to your seniors.

While preparing the pay structure you have to be very careful. The pay structure will be different from one organisation to another organisation. Its all depends on the HR Policy.

Example:

Gross Salary-8000
Basic Salary -30% from gross salary (2400)
HRA -40% from basic salary (960)
Conveyance –800
Medical Allowances-1250
Educational Allowances-1000
Special Allowances-1590

It will be vary from one organisation to another organisation.

This is just my suggestion friend.


Warmest Regards,
Mohan.M.S
"Willingness to walk the extra mile to achieve excellence"

Hi SHWETA
find attached a copy of pay slip in a very simple form
Rahail A Ahmed

Hi

Recently, I have joined a company where they have nothing beside Basic and HRA so I am paying IT whereas in the last company my salary was same but I had option of getting reimbursement of telephone, magazine, car running and entertainment. This was part of CTC. If I submit bill then I don’t needs to pay Income tax for these. But if I submit bill amount which crosses the amount mentioned in CTC then they don’t use to reimburse.

But my present company is saying that even I submit bill then also it is under Income Tax.

Thanks
Sumita

Mr jai,
as per your attachment i found that the basic is changeble according to the percentage, but as per the rule u have to fix the basic + Da min or more as per the govt rule , so my suggesstion is as per the state rule you have to fix those amount as per the minimum wages act
So while fixing the salary kindly breakup in percentage wise and keep the basic + DA fixed & other allowances for lower salary those who dont come under Income Tax Act. and those who comes under IT Act kindly include conveyance, Transprt allow, LTA & Med Rem and other statutory deduction.
Ramnath

Dear Sir/Madma;
Can you give me the description of factories Act that HR Manager/Executive is supposed to have in their finger tips? and in what are the area s/he has to be familiar with?
By
Joseph.