Confused About Salary Deductions? Need Help Designing a Fair Structure for My Team

Designing a Salary Structure

Please help me with designing a salary structure for my organization. I'm a little confused about the deductions from the salary. Please find attached the sheet with the structure I have designed. Also, please suggest if TDS deductions should be added, as I don't have any idea about taxation.

Regards,
Pratyasha.

I think professional tax is missing to be deducted apart from PF. You should check that out.

I was not aware that your organization is based in Delhi. Yeah, it's not applicable there. What kind of sector do you belong to? Is it a manufacturing setup or service industry? Have you included the bonus and gratuity part in CTC?

Yes, Prateek. My mistake, I haven't written in my message. Ours is a financial service industry. Furthermore, we don't include the bonus and gratuity parts in CTC. Can you please also help me out with the deduction of TDS? Should it be there?

Best Regards,
Pratyasha.

Financial Service Industry Salary Structure

Yes, Prateek. My mistake, I haven't mentioned in my message that ours is a financial service industry. Furthermore, we don't include bonus and gratuity in CTC. Can you please also help me out with the deduction of TDS? Should it be there?

Best Regards,
Pratyasha.

PFA the tax calculator for TDS working and your further help.

Regards,
Rahul K

It seems you are more concerned about a proper salary structure. I have done some work on the sheet uploaded by you, and the same is attached. I hope this would be of help.

Regards,
Satheesh Kumar

Designing a Salary Structure

To design a salary structure, one must consider various factors such as job roles, market rates, internal equity, and organizational budget. When determining the percentage breakdown of a salary of 10,00,000/= per annum, it is essential to analyze the components that make up the total compensation package. This typically includes base salary, bonuses, benefits, and any additional incentives.

The allocation of percentages within a salary structure can vary depending on the industry, company size, and specific job roles. For example, a common breakdown might include 70% base salary, 20% bonuses, and 10% benefits. However, these percentages can be adjusted based on the organization's priorities and compensation philosophy.

It's crucial to conduct a thorough salary analysis and market research to ensure that the salary structure is competitive, fair, and aligned with the organization's overall compensation strategy. Additionally, regular reviews and adjustments to the salary structure are necessary to remain competitive in the market and retain top talent.

If you need further assistance or guidance on designing a salary structure, feel free to ask for more specific advice tailored to your organization's needs.

Regards,
Jimmii

First, try to keep your basic salary between 40% to 50% of the CTC to be offered. Maintain a standard for the basic salary. You have requested a salary breakup, but you have uploaded a salary slip breakup. Although both are not different, there are other components in the CTC that do not reflect in the salary slip. Also, TDS is compulsory only if the employee falls under the tax slab and has not provided any proof of investment. Therefore, we cannot show the same in the salary breakup. However, if tax is deducted, it needs to be reflected in the salary slip.

Regards,
Jeetendra
[Phone Number Removed For Privacy Reasons]

I have considered the basic salary as 45% of the Gross salary, not the CTC. Should I make a change to this? I realized that I missed including the Employer's contribution in PF, which is Rs. 780/- for our organization.

Basic Salary Considerations

First, aim to maintain the Basic Salary between 40 to 50% of the CTC being offered. It is important to set a standard for the basic salary.

Salary Breakup vs. Salary Slip

You have requested a Salary Breakup, but you have provided a salary slip breakup. Although they are similar, there are additional components in the CTC that are not reflected in the salary slip.

TDS and Taxation

Regarding TDS, it is mandatory only if the employee falls under the tax slab and has not submitted any proof of investments. In such cases, we cannot include it in the Salary Breakup. However, if tax is deducted, it should be reflected in the Salary Slip.

Regards,
Jeetendra
[Phone Number Removed For Privacy Reasons]

Hi everyone, I am currently working in an NGO in Kolkata. My NGO runs two rural BPOs in Kolkata. As profits cannot be maximized under a Section 25 non-profit, the rural BPOs will shortly be converted into separate for-profit entities. My task is to design HR policies for the rural BPOs, which are known as MERIT centers. As I am not from HR and don't have any background in it, I am currently facing difficulties in designing the compensation structure, incentives, and benefits for the employees of the rural BPO. It would be really beneficial if I could get some inputs from the members of citehr.

Thanks and regards, Aarti.

Hi Members, I've been asked to design a salary structure. I am aware of the components of salary; however, I would like to know the maximum Basic, Dearness Allowance, Incentive/Bonus, Conveyance Allowance, HRA, Medical Allowance, LTA, Vehicle Allowance, and Telephone Mobile Allowance. I would like to know what rules are standard ones with maximum amounts in each category. For example, for a salary of Rs100,000 per annum, what percentage should be allocated to each component?

Regards,
Natasha