Starting from Scratch: How Do I Set Up HR Basics Like Salary Structure and Appointment Letters?

I have joined an absolutely new organization which does not even have an HR department and have a whole load of queries.

- I would like to know how do I go about preparing a salary structure and what are the components I need to include.
- I would also like to know that if I've been given a monthly CTC, how could I calculate the basic salary from that.
- Could someone also help me with the format to draft an appointment letter

Hi Ruhi,

As requested, I am forwarding you a copy of the salary proposal.

Regards,
Sandhya Keshav
9845520802

Hi Ruhi,

The best thing would be to search on this site. You will get lots of material. I too have derived information from citehr. All the best. Jhuma

Hi Ruhi,

Why don't you use the search option, as all these queries have already been discussed in this forum? Just follow the following links:

[Setup new HR Dept](https://www.citehr.com/90669-setup-new-hr-dept.html)
[How to start HR department in a new company](https://www.citehr.com/38139-how-start-hr-department-new-company.html)

This attachment can help you out.

[](https://www.citehr.com/157570-immidiate-help-reqd-new-qrganisational-setup.html#top)

Hi Bipin,

Thank you for your help, but the situation here is really different. There are not many employees at the moment. The CEO wants to close all positions at the earliest and also wants me to simultaneously single-handedly handle setting up the department and process. It is very difficult to do this kind of multitasking. Any suggestions?

Dear Ruhi,

Greetings for the day ahead!

It is theoretically not correct to arrive at the basic salary from CTC; however, you can do that for your own convenience. The CTC depends on the basic salary as all other overheads are percentages of the basic salary.

I am enclosing the overheads that are normally included in a salary structure, but they may vary from company to company.

Basic - 100
HRA - 50 (50% of basic salary)
LTA - 8 (8% of basic salary)
Special Allowances - 12 (12% of basic salary)
PF - 12 (12% of basic salary)
Conveyance - 40% of basic salary

There are many companies that have superannuation and Gratuity plans. In such companies:

Superannuation - 15 (15% of basic salary)
Gratuity - 4.81 (4.81% of basic salary)

Many companies also provide medical and city allowances. Such allowances are not percentage fractions but figures that management decides. It varies from company to company.

I am also attaching a format of an appointment letter. Hope this helps you.

Regards,
Team GroupHR
Email: consult@grouphronline.com