Salary Structure Headings

marysaminthan@gmail.com
Hi,
This is Priya. I am working as an HR Executive. I found this site veryful and knowledgeable.
I have a doubt. In our company we want to restructure our salary headings. Now, we are calculating in the following heads,
Basic-60%
HRA-30%
Travel allowance-800
Medical reimbursement-1250
spl allowance- remaining from above.
In the above we cannot reimburse spl allowance it seems. So we thought to change it to communication reimbursement. This also cannot be reimbursed unless it is paid directly by the company. In such case my higher authorities suggested PDR heading i.e personal development reimbursement. Kindly suggest me in this. Is it fine to create heading for PDR. If yes, how much is the limit. Else suggest me with some other headings which can be reimbursed.
Waiting for your valuable reply.
Thanks in advance.
Regards,
S. Priya
jeevarathnam
Hi Priya
There is nothing called as PDR.
You shall restructure the Breakups as below
Basic 50%
HRA shall be 50% on Basic as employee shall avail more HRA Exemptions.
Travel/Conveyance shall emain as 800
Medical allowance as 1250
You shall even add food coupons
Remaining shall be treated as Special Allowances
tsivasankaran
PDR is used as a component by some companies If I am right, this concept was introduced in eighties as there used to be tax exemptions . In fact initially it was given for buying books,magazines and news papers. Later , Companies started giving thi as monthly allowance ubder the Head Personal Development
Adding this or any other head which your company feels good for you can be incorporated. However, consult a Tax expert as to whether it has any relevance today for tax saving
I suggest add Heads only if there is going to be Tax Saving
Some Companies do away with all such Heads and call it Flexi Allowance.
nejati80
Dear All,
Can you send me some document regarding salary survey in order that i can choice a good methodology to do my organization salary survey.
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