Creating a Pay Scale from Scratch for 400+ Employees: What Should I Consider?

Dear friends,

I am in an organization where no pay scale or salary structure exists. I am required to prepare the same for over 400 existing employees and also for the future expansions of the group. Could anyone help me with guidance and important aspects I should consider?

Thanks.

Hi! Try to segregate taxable and non-taxable salary components and fix the structure. Make sure that the pay structure should be easy and helpful to the employee in terms of tax.

Chini

With respect to pay scale, the salary of the employees is given in a range such as 2500-200-300-3000. This indicates that an employee with a salary of 2500 will be increased to 2700 (2500 + 200) in their first increment and to 3000 (2700 + 300) in their second increment. The interval between the increments is determined by management policies.

Regarding the salary structure, include aspects suitable for your organization such as travel allowances, food allowances, city compensation allowances, etc. It may be beneficial to seek assistance from an auditor when designing the salary structure.

Dear friends,

I am in an organization where no pay scale or salary structure exists. I am required to prepare the same for over 400 existing employees and for future expansions of the Group. Could anyone help me with guidance and important aspects I should consider?

Thank you.

If my gross salary is 1,100,000 per annum, how can I segregate it into its components? Can you help me with a broad pay structure.

Hi, I am having some confusion regarding salary. What does a salary of 2500-250 EB 350-5500 mean? Is the increment an annual increment, or can it be done without any fixed time period?

May I know how to calculate salary in a company if there are no PF or other deductions except tax?