Hi Chetana,
Q. Can someone please help me to calculate;
The total Salary cost
Average Salary cost
Average Salary increase in an organisation.
Need the formulas.....
A. Its a simple mathematics and let me explain this way:-
1. Total Salary cost: Be clear to add all the components of the salary both monthly & annuals, this includes insurance premuim and PF contribution by the company et all. Add up all this for the all employees to give total salary cost.
2. Average salary cost: once you have the total salary cost , divide this by the number of the employees.
Use the departmental wise/location wise, functional wise costs to be compared/bencharked with other locations/industry standards.
3. Average salary increase:
a. Calculate ( This year's total salary-previous yr total salary)
b. Divide a by this year's total salary.
c. Multiply the product by 100.
Voila you would get the answer!..
Hope this helps you.
Cheerio
Rajat Joshi