Hello Swati!
As far as Legal guideline is concerned ,u have to check with min wages prevailing in ur state.
Other than this, market analysis and comparison of prevailing trends has to be done through various methods such as Survey ,Data Collection thru Job Portals or Consultants e.t.c .Data collection should be from similar type of industries. ( Industy Type here means nature of business ,location , maturity in processes ,commencement time e.t.c).
Key things to remeber while a Survey are :
Position Paralleling : What each position means in each organisation ;what is the role of that particular position has to be kept in mind.
No. of grades and hierarchy is must to be analysed.
While gathering the Compensation band details , data for other Fringe Benefits has to be gathered , as sometimes it is a major part of compensation packages.
After getting the Compensation details of various industries ,Median method could be used to evaluate Market Median Compensation.
Finally , U can calculate ur Compensation Band near the market median values.
Thanks & Regards
Parul Gupta