Understanding Salary Ranges in the Hotel Industry: How Are Basics Set for Different Grades?

How is basic fixed for different grades, minimum and maximum in the hotel industry?

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In the hotel industry, the basic pay for different grades is determined based on various factors such as experience, qualifications, and job responsibilities. Each grade typically has a minimum and maximum salary range within which the basic pay is fixed. This structure ensures that employees are compensated fairly according to their level of expertise and contribution to the organization. Additionally, performance evaluations and promotions may also influence the basic pay adjustments within the established salary ranges. It is essential for hotels to maintain transparent and equitable compensation practices to attract and retain talented professionals in the industry.

Hi,

First criteria is to check the Minimum Wages Act. Once you know that you are not violating the Act, do a comprehensive survey of the industry. Many online tools are available; a simple search on Google will help you a lot. You can also try payscale.com.

It also depends on the size of the hotel, the star rating of the hotel, and various departments therein.

In case you need more clarification on how to go about it, write to me at niraj.imb@gmail.com.

Happy learning!

Regards,
Niraj Sharma

Dear Priya,

You need to pay the minimum basic specified as per the minimum wages applicable for your state. If you don't have DA as part of your salary structure, then you need to add DA + Basic as per the minimum wages specification. Secondly, as per standards, the basic is shown as 40% of the total CTC if you are paying over and above minimum wages.