So far as my knowledge goes, there is no IT guideline regarding compensation structure. If there is any, I request to put it in this forum.
As per Wage Codes and all Labor Codes, the definition of wages is the same.
In the first part of the definition, the inclusion list consists of all remuneration whether by way of salaries, allowances, or otherwise, expressed in money, payable to a person, and includes Basic, DA, & RA.
The second part is the exclusion list (a to k) which includes all payable items except one item, no. (b), which is the value of any house accommodation, or the supply of light, water, medical attendance, etc., that are not payable items but are included in the exclusion list.
The third part consists of restrictions/conditions on exclusion items (a to i) which should be 50% of the payable amount.
To restructure the existing remuneration structure, it will be required to start from the CTC of each individual employee (nowadays available with most organizations) and judiciously determine the payable items. 50% of the payable items will be Basic & DA. The remaining 50% will be other monthly and annualized items, including Employer's contribution to PF, Pension Fund, if any, etc.
Some examples of non-payable items include Employer's ESIC contribution, Canteen Subsidy, Company providing transport to bring employees to the office and back, Insurance premium, etc.
The above will vary randomly from organization to organization and employee to employee. However, till date, no Labor Codes have been implemented. Let us wait until the Government announces the implementation date.
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