Hi,
I have been working on some salary revisions in a company.
Their existing CTC structure did not account for PF, I have created the structure such that as per the company policy the annual CTC has the following componentsŞ
Basic, HRA and Conveyance + Fixed benefits equals 75% of total annual ctc this also includes the PF contributions of both employee and employer
Variable component 25%
I am now facing a challenge in revising salaries. When I hike the TCTC by a certain percentage with benefits remaining the same, the change in PF contribution due to dependency on Basic component is changing the annual CTC figure.Since I have approval on percentage hike in annual CTC, this change in CTC due to dependency on PF is changing the whole equation.
Please help me understand how this can be calculated or if I should just define salary bands and associate PF contributions?
Any inputs will be helpful, thanks!
I have been working on some salary revisions in a company.
Their existing CTC structure did not account for PF, I have created the structure such that as per the company policy the annual CTC has the following componentsŞ
Basic, HRA and Conveyance + Fixed benefits equals 75% of total annual ctc this also includes the PF contributions of both employee and employer
Variable component 25%
I am now facing a challenge in revising salaries. When I hike the TCTC by a certain percentage with benefits remaining the same, the change in PF contribution due to dependency on Basic component is changing the annual CTC figure.Since I have approval on percentage hike in annual CTC, this change in CTC due to dependency on PF is changing the whole equation.
Please help me understand how this can be calculated or if I should just define salary bands and associate PF contributions?
Any inputs will be helpful, thanks!