How Do I Set Up a Fair Salary Structure for a 60-Year-Old Candidate Earning 2 Lacs Monthly?

Please guide me on how to set up a salary structure for a 60-year-old candidate. His monthly in-hand salary will be 2 lacs.

Hi, considering the age of the candidate, I suggest you hire him as a Retainer/Consultant subject to TDS rather than hiring on regular rolls.

There is a retirement limit for many industries and also in governments. It is expected that beyond 58 or 60, a person may not have the physical or mental ability to discharge their duties fully, considering various factors, including health. However, considering the person's technical knowledge and experience that they may provide for your organization, you can consider appointing them on a Fixed Term Contract for a year, extendable every year. This contract may not entail several benefits like PF, gratuity, etc., but while computing their salary, you can take into account the benefits they would get as a regular employee.

Best wishes

To set up a fair salary structure for a 60-year-old candidate earning 2 lacs monthly, you can consider appointing them on a Fixed Term Contract, taking into account their technical knowledge and experience. Here's a practical approach:

1. Legal Consideration: Check labor laws regarding retirement age and fixed-term contracts in India.
2. Salary Calculation: Determine a competitive salary based on the candidate's expertise, industry standards, and cost of living in Bhopal.
3. Benefits Package: Since the candidate may not be eligible for PF or gratuity, consider offering other benefits such as health insurance, flexible work hours, and performance bonuses.
4. Renewal Clause: Specify terms for contract renewal based on performance and business needs.
5. Consultation: Seek advice from legal counsel or HR experts to ensure compliance with regulations.

By structuring the salary package with a focus on the candidate's value and contributions, you can create a fair and attractive offer for the 60-year-old candidate.