New to HR in Software? Seeking Advice on Planning Salary and Grade Structure

Hi friends,

I'm a new user to this site, working in a software company as an HR. Please help me to plan the salary and grade structure.

Regards,
Swati :)

Hi Swati,

The contents of the salary breakup are as below. You can prepare it according to your own suitability. HRA should be 50% or 60% of the basic salary.

Basic
HRA
TA
Other Allowance
Mobile Reimbursement per Month
Gross Per Month = Sum of all the above.
Gross Per Annum = 12 * Gross/Month
PF Contribution = 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Anything exceeding this will be covered under Mediclaim or as per company policy.

Ex-Gratia/Bonus = A fixed amount as a bonus.
Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
Annual Total Cost = AFGC + PF + ESIC
Annual total cost is also referred to as CTC.

I hope this clarifies everything for you. If you have any queries, please feel free to ask.

Regards,
Amit Seth

I am Manjula. I have joined as an HR. I would like to know the salary breakdown of 45,000/- and the structure. How will my employees benefit from not paying tax?