Help Needed To Design The Salary Structure

Hi,
I am joining a small IT Firm that has its base location in US and is well established there. They are setting up their office in India and I being into HR, have to design the salary structure which would be applicable to all the employees. Currently 5 people are there and the size of employees would increase to 40.
So please help me to design the salary structure for the IT Company with the necessary components to be focussed on so that employees and employers are happy and the emp's dont have to pay much of Tax and all.
Plzz help me on the same.
Thank you
Lakshmi
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Make Grades from A0- A5, A0 being the lowest to A5 being the highest level in the organisation. Decide the years of experience for e.g. A0 - exp 0- 2 yrs ; A1: 2: 4 yrs; A2- 4: 7 yrs ; A3 - 7: 10 yrs; A4- 10- - 20 yrs and so on.
Salary Strusture would be
Basic
HRA
COnveyance
Self Developement Allowance
Telephone Reimbursement
Special Allowance
TOTAL (A)
LTA
P.F.
E.S.I
Medical
Bonus
Performance Incentive
TOTAL B
Then add up Total A+ B, u'l get the garnd total.
ESI is 4.75% of monthly gross applicable only to employees havin monthly gross less than 10, 000 per month. Performance INcentive is performance based always a variable component and is a part of CTC.
I hope this helps
Regards