How Are Job Levels and Salary Slabs Determined in IT Organizations? Seeking Guidance

I have recently joined an online IT services organization, and I have been entrusted with an assignment on HR. How are different levels in an organization determined, and how are salaries fixed for each level or grade? Is it based on experience that the levels are fixed, or are there any other criteria? Also, I would appreciate details regarding the different levels in an organization and the salary slabs that are fixed. Please help me. Thank you.

Hi, thanks for your response. I have spoken to a few of my contacts in the HR field, and the inference I have received is that there is a separate team in the organization that conducts the market survey. It is based on this survey that the salary is determined. Different levels in the organization are based on experience, education, and niche skills that individuals possess.

Please guide.

Regards,
Sheeba

It may seem difficult at first, but it's not that complex. Here is a step-by-step guide:

1. First, prepare an organizational chart department-wise.
2. Next, establish the hierarchy of departments.
3. Choose your department.
4. Obtain a job profile or create one based on general criteria.
5. Determine a gross salary by either inquiring about the current salary range or selecting a reasonable amount yourself.
6. Gather information on the benefits offered by the company to employees, including any specific benefits within the department.
7. Understand the deductions made by your company, or refer to general guidelines.
8. Break down the gross salary into components: basic pay, House Rent Allowance (HRA), other allowances, special allowances, minus Professional Tax (PT), education cess, and any other deductions like Provident Fund (PF).

By following these steps, you will have a comprehensive overview of the department and how salaries are distributed.

Salary Structures

Salary structures are determined based on company policies, which can vary across industries and organizations. Factors such as experience, job designation, qualifications, and market trends influence salary fixation. Detailed information can be found through research online.

This guidance is intended for general learning purposes. If you need a specific format, I recommend seeking assistance from someone who may have one to share.

Best of luck.