Need Urgent Help Creating a Salary Structure for My Manufacturing Company

Dear All,

I am working in a Manufacturing Company, and I have to devise a salary structure for my company. Urgent help is required on this matter.

Thank you.

Hi Vandana,

I hope the attachment will help you.

Regards,
Vineetha
Sr HR

Thank you so much, Vineetha. Basically, I want a salary structure based on the hierarchy. For example, for a junior executive, the salary range is $4000-$6000. This range can be further broken down into $4000-$4500-$5000-$5500-$6000. At the time of appraisal, depending on his performance, his salary will vary, and he will receive increments as shown. Once he achieves $6000, he will be promoted to the next level, which is executive. If anyone has a format or a structure like this, please share it with me.

Hi Vandana,

First, you should discuss the subject with top management and finance personnel regarding the salary structure. The finance team has experience in salary policy and taxes, and then you can structure the salaries based on hierarchy levels.

Please find the attached sample file of the salary structure. I hope it will be helpful to you.

With Regards,
Vijay

Dear Vineetha,

As per your salary break-up sheet, the basic is 35%, which is less than the minimum wages. Kindly suggest whether 35% of the basic salary can be considered in Punjab, where the minimum wages are 3398?

Thank you.

Hi all,

Could anyone explain to me in detail about salary structure? What should be the Basic, HRA, DA, allowances, etc., in percentage? Should Basic not be less than 35%? Some people suggest that Basic varies from 35% to 60%.

Regards,
Pushpendra

Every company has its own rule to decide its basic, but it should not be less than, maybe, 35%. In our organization, we are considering two basic structures: one is 40% and 50% of CTC, and in some companies, it's 55%.

Ashok

Hi Vandana,

I hope this will help. I normally go to Remchannel.com or payscale.com to check how aligned we are, and then I plot it on the spreadsheet that I have attached.