Designing Salary Packages for Offshore Teams: How Do You Create a Fair and Effective Offer?

Hi,

I am with a US-based IT company that has recently established operations in India. I am in the process of designing the salary packages for our offshore employees. Could anyone please assist me in creating a basic yet effective package?

Thanks, Natasha

Hi Natasha,

The various salary components in India are as follows:

- Basic
- HRA
- Dearness Allowance
- Special Allowance (optional)
- Conveyance Allowance
- Educational Allowance
- Provident fund

You could set percentages of basic for all the allowances. Provident fund is 12% of the basic + Dearness Allowance.

You could also work out an amount for Leave Travel Allowance and Annual bonus.

Hope this helps.

Sherine

Hi Shirene,

This certainly helps. I was wondering if the percentages on basic are fixed or if they vary from company to company, other than the PF, that is.

Thanks,
Natasha

Hi Natasha,

Please use the search on the top left. This would provide you with several discussions on this topic.

Regards,
Rajat