Fix Fair Salary To Avoid Illegal Issues And Create Salary Structure

We are registering our company for retail and whole two and three wheeler spares shops and will be operating from multiple locations in tamilnadu.
We are hiring salesmen and need to fix salary for our employees. since it is a startup, we need to set a fair salary to employees and see the company benefits too.
Tamil Nadu Minimum Wage In rupees per day w.e.f April 1, 2016 to March 31, 2017
Scheduled Employment = Shops and Commercial Establishments
Basic Minimum Wages = 78.88
V.D.A. = 143.35
Total Minimum Wages = 222.23

1. How to fix the fair salary to salesmen and to avoid any illegal issues ?
2. and for the same suggested salary from the question 1, how to create salary structure where there will be mutual benefit for employees as well the company.
Design A Salary Structure Where The Base Salary Should Be Very Less And Incentives (Which Includes Attendance Allowance, Food Allowance,Performance Allowance And Transport Allowance Etc.)
Regards,
Pharthiphan

I did some research and created a salary structure, request you to let me know the flaws and suggest me a perfect salary structure.

Dear All,
response would be of a great help.I believe I am at the right place seeking for help.
Regards,
Pharthiphan

I did some research and created a salary structure myself, request you to let me know the flaws and suggest me a perfect salary structure.
response would be of a great help.I believe I am at the right place seeking for help. Regards, Pharthiphan
Regards,
Pharthiphan

Dear Pharthiphan,

To my opinion it will be better if you fix basic as minimum basic & da of the State. There are States in India where HRA has State Act e.g West Bengal ( Minimum HRA 5% of Basic & DA). I have no idea about your State, please check. Basic structure may be tapper off - higher the monthly gross salary- basic % of monthly gross should be less but at higher level it may be 30% minimum of monthly gross. At lower level no need to keep pocket like conveyance, medical etc in pay structure as the yearly earning is not taxable. At lower level there may be two pockets Basic & HRA. More the monthly gross will increase, you should consider pockets like conveyance, medical, LTA etc for ITax savings. PF authority usually suggest to fix basic at lower level at least 50% of monthly gross upto 15,000/- basic(statutory limit). There are case laws regarding bifurcation of minimum wages but in that case the monthly gross salary should not be less than minimum wages.

Salary structure usually vary from organization to organization depending on nature of business, market prevailing rate, minimum wages, statutory cost- PF, ESI, Bonus etc. There is no fixed formula to determine the salary structure. If you need any further clarification please contact me.

S K Bandyopadhyay

USD HR Solutions

+9198310 81531

[Login to view]

Home

Hi I am working as a
"Field Executive", I want to the Exact Salary Structure of Karnataka,
No's of working is 30 days & 20000 is the take Home Salary means, what will be the (Percentages) of this below,
BASIC SALARY
CONVEYANCE
DEPUTATION ALLOWANCE (R)
HOUSE RENT ALLOWANCE
MEDICAL ALLOWANCE
STATUTORY BONUS RECURRING
PERSONAL TAX
ESI.