Salary Structures in a Recession: How Are Your Companies Adapting?

Hi friends,

During the current recession, it is crucial for all of us to stay updated on how the salary structure is designed in tough times and what the current market trends are. I believe we should discuss what our respective companies are doing and keep each other updated on the new compensation and benefit trends. What do you all say?

Thank you.

Hi guys,

Seeing the salary structure in the current market trends is almost strange for the new employee who is being hired presently. It also reflects in the salary structure of previous or current employees, as every sector is trying to slow down the cost of manpower, with up to 10-25% salary deductions being an ongoing trend if someone wants to stay employed. All this is because of the low demand for products or services worldwide.

Apart from the above, some companies are making changes to the leave and travel policies to compensate for the cost of manpower as much as possible. As employees, we don't have any option left except to act according to the management if we want to stay employed, or we can say we have regressed to a position two years back considering the current salary cuts.

Anyway, we have to cooperate in this situation with the hope that the job market will soon change its trends positively, and we will get back what we deserve.

That's all from my side. Let others comment on this.

Thanks & Regards,

C. Bhushan Sharma

Hi,

Could anyone guide me to a source where I can find the salary range in the current market for Dotnet, PHP, and PB for experience levels ranging from 0 to 5+ years?

Regards,
Mary

Hi,

Could anyone guide me to a source where I can find the salary range in the current market for Dotnet, PHP, and PB for experience levels ranging from 0 to 5+ years?

Regards,
Mary

Hi,

I agree with Mr. Bhushan Sharma; many companies are implementing salary reductions. In our company, we have also implemented reductions primarily in taxable allowances. This approach not only reduces the actual salary but also minimizes the tax implications associated with the reductions.

Thank you, Bhushan, for your feedback. I agree that we should follow management's decisions, but it's always beneficial to stay informed about what's happening around us and what other people are doing. Please share what measures your company is taking regarding compensation and benefits.

Ensure proper paragraph formatting:

Thank you, Bhushan, for your feedback. I agree that we should follow management's decisions, but it's always beneficial to stay informed about what's happening around us and what other people are doing. Please share what measures your company is taking regarding compensation and benefits.

Ok, here is what I think,

Until a few months back, we were living in a very employee and service/consumer-centric environment. Which meant that the organizations were doing a lot of things just to attract and retain talent. One of the most common things was giving non-taxable components to the employees as a part of their salaries.

For example, if an employee gets home 40,000 per month, then the organization may give him a structure in which almost 20-30% is paid out as reimbursements, like conveyance reimbursement, medical reimbursement, phone reimbursement, Sodexo vouchers, etc. So out of 40,000, the employee was given approximately 8-10k per month as non-taxable salary. The employee doesn't pay tax on this; however, the organization pays 6.78% of "Fringe Benefit Tax" to the government. So, in this case, the organization pays INR 678 per month to the government as FBT.

Imagine big companies having 500 such employees. They were paying huge amounts of FBT just to keep the employees happy.

But now the situation has changed, and the companies don't want to do it anymore. This is another measure of cutting costs for the organization.

Your Views???

Thanks

The question you posed to all is good, and we have to think about this issue regarding the designing of the salary structure as HR professionals. In my opinion, for those who are already with the company, we can consider cutting fringe benefits like telephone, car, and other FBT. As for new joiners, we should design a new salary structure.

The question that you posed to all is good, and we have to think about this issue regarding the designing of the salary structure as HR professionals. In my opinion, for those who already exist in the company, we can cut fringe benefits like telephone, car, and other FBT that need cutting. For new joiners, we need to design a new salary structure. If the company provides any meals to the employees, we can simply charge 50% of the cost to the employees. Not only this, we can cut many costs. The main thing we need to do at the time of joining is to communicate all these things clearly.

Hi Friends,

This is the most lucrative topic to discuss. We, as an IT solutions provider company, are following the trend of increasing the variable part of the salary. Previously, we used to follow the structure of 80-20, meaning 80 percent fixed salary and 20 percent variable. However, due to the current industry scenario, we have amended it to 70-30 percent.

We are also monitoring travel and conveyance expenses, which we have reduced.

That's all I can contribute for now, and I would welcome valuable suggestions from the HRcite members.

Regards,
Rachna :)

Hello Everyone,

Our company is also experiencing a salary cut, with a reduction of 20% on the basic salary, which is being treated as Leave Without Pay. Both our HR Head and Accounts Head are new, and I have a specific query – should this reduction be classified as LWP or as Loss of Pay? Currently, when an employee resigns, the salary slip indicates LWP, potentially giving the impression to future employers that the employee had irregular attendance. How should we address this situation?

Regards,
Amla

Hi all,

Salary structure can be set based on the following experience levels:
- 0 to 1 year
- 1 to 3 years
- 3 to 5 years
- 5 to 7 years

Salaries can be determined according to skills, education, and years of experience. They can range from a starting gross salary of $3800 plus CTC to $50000.

Dear All,

Nice thought at the right time.

Probably this time is very important for us as HR professionals. In my opinion, one way we have to keep the cost to the company as minimal as possible while also considering the employees' perspective. In the current scenario, they may not receive significant salary increases, but they at least expect a tax-friendly structure.

So, if we remove the reimbursement components, most of their income will become taxable, making the effective hike on their paychecks ineffective.

Your thoughts on the same are welcome.

Regards,

Anshul Saxena