How Can I Streamline Salary Components Without Changing Their Number? Urgent Help Needed

Dear Friends,

I would like to share that my company doesn't have any fixed ratio of components of the salary structure. The presently used components are Basic, HRA, Other Allowance, and Conveyance. The percentages of the components are quite arbitrarily chosen. If I want to streamline the structure of the salary while keeping the number of components unchanged, how can I do it? I mean, what should be the percentages of the above-mentioned components based on the gross salary?

Kindly help me as this is urgently needed.

Regards,
Subhabrata Dasgupta

Dear All,

I am working as an HR professional in the Power Sector in Hyderabad. My management has instructed me to prepare the salary structure with only two components, namely Basic+DA (50%) and Other Allowances. Is this correct? What percentage of the Basic & DA makes up the 50%? DA will be calculated based on the Basic salary.

Furthermore, can the Special Allowance exceed the Basic Salary?

I would appreciate it if you could clarify these two points.

I look forward to your prompt replies.

Regards, Murali
Email: murali_uma2003@yahoo.com

Hi,

To all HR professionals out there, I need help. A company has offered me a job where 80% of the salary is mentioned to be variable pay, and only 20% is fixed pay. The 80% variable pay is entirely based on ratings from my seniors. Additionally, there is an agreement for 12 months. How fair is this? Is it the correct system to pay salary as a variable amount up to the extent of 80%? Please help me choose whether to join this company or not.