Hello every body,
Current company I've joined doesn't hv any salary structure til date and the CEO him self transfers the fixed amount to employee personal bank accounts hence none of the employee hv'nt received any pay slip till date.
Now management has decided to stream line the entire process where when a new employee comes on board it will be easy for them and as well as for company to follow hence we would like to have salary computation in a format where any IT /product based company follows.
we have total team of 18 out of which 10 people are in to software sales in chennai, coimbattore,kerala and Mumbai and now we are going to bring new employee on board in hyderbad and Bengaluru too.
Appraisals are happened and CEO decided to give variable pay as well as incentives based on their performance and he come with a point as these are cost to company he wants incentive also to be showed in their salary structure.
My question is when the incentive varies and it is completely based on performance how can we can include this in CTC. If yes can some on you guide me how to show that with CTC
components we would like to add are base CTC+Variable pay+Incentives on monthly target+Daily allowance
Say like for 7 lacs salary which included 50 thousand as variable pay paid on quarterly basis against performance and monthly incentives based on their targets maximum of 7,000 if they achieve 100%.
Senior s kindly help in this regards.Mean while i will also try to put in and share with you.
Note: No PF deduction as of now and would like to know when we can start with PF what is the minimum number required for PF to add
Regards
Usha
Current company I've joined doesn't hv any salary structure til date and the CEO him self transfers the fixed amount to employee personal bank accounts hence none of the employee hv'nt received any pay slip till date.
Now management has decided to stream line the entire process where when a new employee comes on board it will be easy for them and as well as for company to follow hence we would like to have salary computation in a format where any IT /product based company follows.
we have total team of 18 out of which 10 people are in to software sales in chennai, coimbattore,kerala and Mumbai and now we are going to bring new employee on board in hyderbad and Bengaluru too.
Appraisals are happened and CEO decided to give variable pay as well as incentives based on their performance and he come with a point as these are cost to company he wants incentive also to be showed in their salary structure.
My question is when the incentive varies and it is completely based on performance how can we can include this in CTC. If yes can some on you guide me how to show that with CTC
components we would like to add are base CTC+Variable pay+Incentives on monthly target+Daily allowance
Say like for 7 lacs salary which included 50 thousand as variable pay paid on quarterly basis against performance and monthly incentives based on their targets maximum of 7,000 if they achieve 100%.
Senior s kindly help in this regards.Mean while i will also try to put in and share with you.
Note: No PF deduction as of now and would like to know when we can start with PF what is the minimum number required for PF to add
Regards
Usha