Salary Budget vs. Company Turnover: What's the Standard Ratio Across Industries?

Dear Friends,

I would like to know the standard practice of the salary budgeted ratio against the turnover of the company. What is the standard percentage of the salary budget against turnover in different industries?

Regards,
Nandikol

Hi Nandikol,

I am not sure if any data is available for the percentage of salary against turnover. If you can inform us why you require it, maybe we can help in a better way. By the way, for calculating the figures you require, you can pick up 20-25 companies of each industry and find out the total wages and salary for the year and divide it by the total sales turnover. Both these figures can be found for almost all listed companies of India at www.equitymaster.com.

You can find individual information on companies in the following sectors:
- Aluminium
- Auto Ancillaries
- Automobiles
- Banking
- Beverages, Food & Tobacco
- Cement
- Consumer Durables
- Consumer Products
- Energy Sources
- Engineering
- Fertilizers
- Hotels
- Investment & Finance
- Media
- Paints
- Petrochemicals
- Pharmaceuticals
- Power
- Shipping
- Software
- Steel

I hope this helps!

Hi Azmal,

How do we fix a salary or a salary bracket for an employee? Is there a calculation involved?

Regards,
Indrayani

Dear Company,

Turnover Is 504 Million. Please suggest how much percentage should be allocated for salary, bonus, and welfare facilities. For admin percentage and raw material purchase percentage, or provide me with the process or formulas to standardize these factors.

Thanks and Regards,
Uday