Employee Grades And Salary Structure

payal123
Hi
We are software company with 25 employees.
Would like to make a organisational structure and grade the employees so that their incentives and salaries can be decided accordingly.
Please give suggestions on the same.
Thanks
Payal
Amitmhrm
Hi Payal..

If its a software development company then you may grade them as below-

Grade -1 Project Manager and other Manager categories

Grade -2 Team Leaders and other similar positions

Grade- 3 Software Developers

Grade -4 trainees and

Grade -5 Support staff

The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.

Basic

HRA

TA

Other Allowance

Mobile Reimbursement

Medical Reimbursement

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 an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.

Getting more than this will be covered under Mediclaim or it depends on company policy

EX-Gratia/Bonus = A fixed amount as Bonus

Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia

Annual Total Cost = AFGC + PF+ESIC

Annual total cost is also called as CTC.

Hope it must have helped you to clear your queries up to some extent.

Regards,

Amit Seth.
shinithomas
pls help me. i am new in HR, i want to know about separation of grades, i am working as a Admin officer in pharma company based at bangalore
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