CTC is very less as compared to my work at a start-up company

I am working at a production-based start-up firm as an HR Executive in Hyderabad. They hired me by saying that proper training for two months would be given and finalized my salary at Rs. 25,000/- only. After joining the company, there's no one for training, in fact, I am the only HR over there. I have to handle all the HR-related work over the company from the beginning till the end. My work pressure is very high here, and I am not getting paid according to it.

I agreed on 25,000 just because I was a fresher, and they said there would be a training period where I would learn everything. But here, I am doing everything on my own. I finished my MBA in HR from IBS Hyderabad, one month before joining the company, i.e., Feb 15, 2023. During that course, I have done two internships also in the same domain, and that's how I have knowledge of the work.

The problem is I am not at all getting paid according to my work, and they are asking me a lot to do at the same time and handle almost everything, which is getting very difficult for me. I am going to complete one month in this company on 20th of March. What should I do now? I am really getting exhausted and disappointed here, how should I ask them to pay me more? Please somebody guide me through this

What is your real issue? Is it salary or the non-availability of persons to assist you? It is not bad for a fresher if the salary is Rs 25,000 because the job market is highly elastic, and an employer can find individuals ready to join them even for Rs 10,000. While you were studying or doing an internship as part of your curriculum, you might have had high expectations that may not align with reality.

Moving on to the second question, if you have to handle all HR functions independently, it is beneficial as you can learn extensively across all HR domains. If you require any assistance, we are here to help. Utilize this forum to enhance your HR skills. I have been part of this forum since 2007, and many HR freshers have developed into proficient HR Managers by seeking advice from experienced individuals like myself. The advantage of this forum is that you can ask any HR-related question without hesitation or fear. A collaborative effort will lead to generating concrete ideas that can be readily implemented in your organization. Therefore, there is no need to worry; you will progress with us. Stay positive. I am confident that you will receive a better salary increase within a year.

Hi Ayushi-Yadav,

I personally feel that you should appreciate your first employer for providing you a platform to start your career in HR with a decent pay and an independent role opportunity. The average salary of Civil/Mechanical Engineers with first class who join mid-size construction/fabrication/Design industries is much lower than what you are paid. So be HAPPY with your salary and roles and responsibilities primarily. Self-contentment is very important.

Each day is going to be a learning day, so perceive your day-to-day tough tasks as learning opportunities that will build a strong foundation for your career. Rather than theoretical HR training, a practical way of learning HR will be more beneficial as it will teach you all the nuances of the particular work and help you gain confidence in due course.

Your MBA degree is just a qualification, like an entry ticket for your HR career. What determines your speedy growth in the HR field is your practical work experience. Being a young chap, you should take this as a challenge and not be reluctant to do hard work.

Unlike today, when we started our careers 26-27 years ago, there was no internet facility or it was just in a budding stage, and we learned everything through practical work experience only. Fortunately, the current generation is blessed with all the advantages, where you can refer to HR-related stuff online, seek help from seniors through forums like this, and use chatgpt for all your questions!

So be positive and happy with all the blessings you have in life.

Surge ahead with all vigor! Wish you all the very best!

I am really thankful for your kind words, sir.

I will give my best here, and I am feeling quite relieved also that through this platform, I am able to connect with people like you who are always there to provide guidance.

Hi Ayushi Yadav,

Appreciated!

You should not have taken up a job if you aren't happy with the salary. That said, you knew why they were going to pay you, so why are you crying? As per IBS standards, your pay is low, true, but you knew that. I will not speculate why you took the job. But once you took it, I suggest you work sincerely for a year or 2 and then look for an alternate using your experience here.

Every job requires you to work hard. They pay you not to sit and relax, so they will pile work up on you. Internships are basically playtime, so don't compare your current job to what you did before. This is the reality you need to face all your life.

On the other hand, if you are being asked to do work beyond your JD or promised scope, you can complain and maybe raise the matter with the founders. If you find the workload too high for one person (and I would suggest you check with people in other companies), then again you can ask the founders for hiring a clerical staff to help you with some of them. But I think with a startup they will not want to increase their headcount.

It always hurts me to know that there's no parity in payment of wages or rate of wages across the industries. The government is no less than deaf, dumb, and blind in the matter of labor workforce and their welfare. The first corruption starts from the authority adopting different Acts and rules. The EPS 95 is the best example of workers being tortured by the government by curtailing their rights to a decent living after retirement.

Currently, the minimum wages for different skill categories range from ₹350 minimum to ₹700 maximum for HSk. So, ₹18400/- excluding EPF and ESI is for freshers for an 8-hour workday, but they are expected to work additional hours. Comparatively, your salary seems somewhat reasonable. If you still feel underpaid, it might be better to explore other opportunities where you can negotiate a higher salary. This paints a stark and unpleasant picture of the labor market.

Mr. Prabhat,

How can there be parity across the industry? The job of the government is to ensure minimum wages, not to force everyone to get paid the same. This is not a communist country. The pay will depend on the nature of the job, difficulty, and the company’s ability to pay.

The other thing is you are comparing minimum wages of a normal factory worker with a person who has done an MBA from a college ranked in the top 25 in the country. The comparison makes little sense.

Mr. Bannerjee,

If the market is common for all and the rate of essential commodities is the same for all, daily wage earners vary from a few hundred to a few thousand. If the government can fix the wage ceiling for EPF & ESI, a person who was paying 1.5 lakh to 2 lakh as income tax is now getting a pension of 3.5K. I would be the happiest person to know from you if you can tell me which legislation governs the wages and salary structure for the workmen employed in the private sector.

If educational institutions are sprouting like mushrooms, the situation would be like this. The syllabus for both top and bottom B schools is the same, and many good academic students don't go to so-called tagging colleges due to fee structures beyond the reach of a common man.

Dear friend, I have seen the scenarios from a very close vicinity. There was a scenario where BE graduates were asking for employment meant for ITI. A member of this forum informed that a person was working under him in the store on a casual basis other than a technical job, rather SK category. No one in the firm knew of his actual qualifications; the situation came to light when the guy gave the wedding invitation card, where his qualification was mentioned as (BE Mech)...

We often see through others' eyes instead of understanding from a grassroots level.

I think we are deviating from the main issue. We have already given inputs to the thread starter, but it is regrettable that the thread starter, Ayushi Yadav, is not convinced with the replies. I can understand the feelings of Mr. Mohanty. I am also someone who is drawing a pension near to what you have said. I was unlucky that I lost a decent pension to which I would have been entitled, following the latest Apex Court verdict, just because the company which took over my previous company treated the PF contribution as a statutory burden rather than an employee benefit. If necessary, we can start a separate session for that.

Thanks, Mr. Madhu.

It's a trend in the new generation that they compare a lot after accepting the offer. I always guide people to leave the place if it's not suiting them or to live with a calm mind until they find a better opportunity. Furthermore, I dislike those who claim to be at the top or No.1.

During the shutdown in 1919 due to the pandemic issue, provisions were made to provide ration for workmen at a cost. The top official who was cleared by the UPSC stated that a "labourer" is one who digs and carries things on their head, but not involved in other types of work. When a person threatened to arrest me, I contacted the Chief Secretary of that state, and he exclaimed...

Mr. Mohanti, please, cool yourself. All these things happen. Just ignore them and keep smiling. Everything will be alright.

Dear Sir/Ma'am,

I am working at a construction company (J Kumar Infraprojects Limited) as Sr. Assistant in the HR department at the Dwarka Expressway Project in Delhi. I was hired by the company with a salary of Rs 28,000. It is important to note that my previous company was Afcons Infrastructure Limited, and my total work experience in the construction field is more than 10 years. Since joining the company, I have been the sole HR personnel and responsible for all HR-related tasks from start to finish. The workload is very high, and I feel that I am not being adequately compensated for it.

The issue I am facing is that my current pay does not reflect the level of work I am doing. I am being asked to handle multiple responsibilities simultaneously, which has become increasingly challenging. I will complete two months at this company on March 31, 2023. I am feeling overwhelmed and dissatisfied. How can I approach the management to discuss a raise? Despite my extensive experience of over 10 years in the construction industry, I have not seen any significant salary increase in the Delhi area.

I eagerly await your prompt response.

Regards,
Amitesh Singh
+918788520454

Hi,

You can discuss with your management about your concern. Present to them that your current remuneration is not matching your past experience and current roles and responsibilities, even when handling them independently. If your management is willing to consider and give some assurance, you may wait and see. However, in case of no proper response, it's better to look for another offer that matches your expectations and move ahead.

But keep one thing in mind—your new employer might also consider a hike based on your current salary only, and the probability of matching the salary based on your overall experience at a stretch will be remote.

Hi Ayushi,

$25K is a good number to start with. The market is overflowing with talent readily available at much lower compensation levels than what you are currently receiving. Explore your domain as much as possible; not every fresher gets the opportunity to explore their ideas. Please commit to spending at least a year here; you will witness your progress, which will justify a salary increase. Stay positive and avoid being judgmental in your first job. Incorporate your creativity and the knowledge you have gained so far; this will undoubtedly benefit you in the long run.

All the best!

Dear Ayushi,

Firstly, I congratulate you on earning a good package of Rs. 25K per month as a fresher. It is common for your first job to involve exposure to various aspects of the role. Since the organization is a startup, it does not have sufficient finances to expand vertically, resulting in most tasks being multitasking in nature. Do not be disheartened, as this opportunity serves as a platform for learning and growth, eventually enabling you to guide others.

All the best,

With Regards

You just go to the labor court against the employer and claim 5 lakh against his unfair practices.

Please let me know if you need any additional assistance.

By this, you are getting a chance to learn new things. You should grab this opportunity as the salary you will receive is based on learning and facing challenges. Having a degree and having experience are two different things.

Hello everyone, I have one question: if we put 30% as basic while calculating the CTC structure, is this the right thing? Usually, the basic should be 40 or 50% of the gross salary, as per my knowledge. Kindly guide me.

Thank you for your kind words, sir. Cite HR is the best platform for getting a chance to learn new things.

If you are not paying any dearness allowance, which will vary according to the cost of living index, it is always good if the basic salary is equal to the sum of basic plus DA as per the notified minimum wages. Moreover, there should be an increase in the basic pay considering the fact that salary means Basic salary. Salary is increased to compensate for the increase in the cost of living and to reward the performance of the employee. You can put the amount above the notified minimum wages under any head. This is the safest way of salary structuring. Remember that there is no legal sanctity for your bifurcation of salary with 30% of the gross salary only on the basic salary.

CTC stands for Cost to Company, and it is the total remuneration package an employee receives from their employer. It includes salary, bonuses, benefits, and other allowances.

As compared to working at a start-up company, CTC is generally much lower. Start-ups are often more willing to offer higher salaries than established companies, as well as more flexible working hours and other perks. However, working at a start-up also comes with more risk, as the company may not be as financially stable and secure as a larger, established company.