Fix Fair Salary To Avoid Illegal Issues And Create Salary Structure Xls Download

pharthiphan
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.)

I did some research and created a salary structure, request you to let me know the flaws and suggest me a perfect salary structure.
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saravanan_d_
Please be specific about "Other Allowance". Note: Washing Allowance is exempted in ESI. HRA can be 50% of Basic. Also, please note that PF Dept is specific that Basic should be 50% of the gross salary or otherwise they think that we subterfuge the PF contribution.
It is better to have different salary structure for CTC less than 2.5 Lacs and above 2.5 Lacs.
It is advisable to give "Medical Allowance", "Uniform Allowance" & "Book Allowance" to higher salary as "Reimbursement allowances" so that TDS won't attract. LTA is also better for higher salary people.
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