How Should I Structure Salary Breakups for Different Levels in Our IT Company?

Hi,

Can anyone help me to set the salary breakup at different levels in the organization? I am working with an IT company, currently, 60+ employees are working, and now I have to design the salary breakup for all different levels. Previously, we were not following any standard breakup of salary. We have one policy of deducting 10% of the basic salary of employees on a monthly basis, and this amount would be released after six months in the same proportionate value. This policy is applicable to all employees. Can anyone suggest me a breakup of salary on different slabs? I would like to divide the salary into five parts:

1. Gross 7 - 10K
2. Gross of 11-20K
3. Gross of 21-35K
4. Gross of 36-50K
5. Gross of 51K and above

Looking for a quick response.

Regards,
Seema

18 views 😞😞😞

Seniors, please guide me on how to design the salary breakup.

Regards,
Seema 😢

Dear Seema,

I am just sharing with you the salary structure followed in IT companies. This may be taken as the yardstick; I am not sharing with you the amounts as this involves confidentiality issues. The percentage on the components may be shared. Please see if this is useful. This is a generic structure. You may fine-tune it.

You may backtrack and adjust level-wise according to your company norms. You may also add perks like food coupons in annual components based on your organization's decision. Please get back to me if you have any queries.

Best Regards,
Madhu S.

Hi,

Definitely, it's a very useful post but I would like to clarify certain things. What are the different steps included and the total for A and B? Please elaborate a bit on the breakdowns.

Hi Nidhi,

I am not able to understand what your question is. Can you elaborate?

Best Regards,
Madhu

Hi Madhu,

Thank you for your response. I would like to understand the general components of salary in different organizations and their percentage breakdowns based on gross/CTC or basic salary. For example, PF typically constitutes 12% of the basic salary, while HRA ranges from 40-50% of the basic salary, and so on.

Please confirm if you understand my query.

Thank you,
Nidhi

Hi Nidhi,

I am able to understand what your query is. But the spreadsheet basically addresses your question. There are certain generic components that all companies provide - Basic, HRA, Conveyance, CCA, etc. The other component, called Special Allowance or Flexi pay, however a company terms it, is basically used to fit individuals into grades and is used more as a tool for negotiation. The allowances shall remain constant. The steps in the sheet basically denote the grades, and individuals progress from one step to another. The percentage of CTC that constitutes Basic, HRA is not how most companies operate; however, there might be exceptions that our friends could shed light upon. The thumb rule and the more widely practiced method involve arriving at the Basic and the slabs of basic for a particular grade, and the same exercise has to be done for all the grades. The percentage of HRA and Conveyance on basic may be decided based on the norms of the company.

Hope I was clear in my explanation. Should you have any further queries, please revert back. :)

Best Regards,

Madhu

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