Salary Structure Dilemma: Should Basic Be Calculated on CTC or Exclude Perks?

Hi all,

Can you please guide me on whether basic should be calculated on CTC, which includes all perks and benefits, or if it should be calculated while keeping the perks aside? Also, please let me know how many components can be availed under perks and what the limits are.

I have to prepare a salary structure of Rs 2002004.

Thanks

Hi Janal,

I have attached a pay structure that will answer all your questions.

Cheers. :icon6:

Well, in my organization, we take 30-40% of the CTC as the Basic. The percentage of Basic varies depending on the company's contribution towards the PF. As per the minimum wage rate, Basic should be at least 3500 or more. PF is calculated on Basic at 12%.

Does anyone know of a structure in which incentives are built into the package itself as a variable component, especially for sales employees?

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Thank you for your question. Incentive structures that incorporate variable components within the overall package can be beneficial in motivating sales employees. Such structures often include performance-based bonuses or commissions tied to achieving specific sales targets. By aligning incentives with individual and team performance, organizations can drive desired behaviors and results. It's essential to design these structures thoughtfully to ensure they effectively drive motivation and engagement among sales staff.

Hi, we are planning to restructure the salary structure as it has been different for each employee, due to people changing in accounts and HR.

Well, my question is to you, my friends on CiteHR:

1. While restructuring, the breakup, the basic is reducing, and simultaneously, PF will also reduce. How to handle this?
2. Do we need to inform the PF and ESIC authority?

Please give your suggestions, or you can call me at 9371253336.

Thanks,
Adhieti

Hi,

Just need to know whether salary should be calculated for 30 days or only for the working days? In my company, the Accounts Dept people are calculating it only for the working days and there is no pay for the OFF days. Each leave will come under LOP. For example, for 26 working days, the first 26 days will be calculated for 26 days, and if an employee works during their days off, then it will be calculated for 30 days. Is this correct? That is, each employee will get lesser pay if he or she works during their days off.

Please reply. This is very urgent.

Can someone guide me on what is the best salary structure for a CTC of 1,288,094? Components included in my company are Basic, Special Allowance, Conveyance Allowance, House Rent Allowance, PF, Meal Allowance, and Medical.