Hi Payal,
If it's a software development company, then you may grade them as follows:
Grade 1: Project Manager and other Manager categories
Grade 2: Team Leaders and other similar positions
Grade 3: Software Developers
Grade 4: Trainees
Grade 5: Support staff
The contents of the salary breakup are as follows; you can prepare it according to your needs. HRA would be 50% or 60% of the basic salary.
- 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 employees not covered under ESI, as the ESI ceiling is 10000/month. Amounts above this will be covered under Mediclaim or 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 known as CTC.
I hope this information helps clarify your queries to some extent.
Regards,
Amit Seth.