Can you please suggest me, % of employee Salary considered on net profit or gross income of company? what should be the percentage of total employee’s salary in the company?
From India, Ahmadabad
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1From India, Ahmadabad
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I agree with Shivendra; please do mention a little more about your query. Are you trying to map this for your company, or is it a project that you are working on as part of your MBA course? What kind of implementation are you looking for?
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From India, Mumbai
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From India, Mumbai
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It depends on the type of business of the company. There is no standard formula or rule. For example, software companies' salary components constitute more than engineering/manufacturing companies.
Regards,
R. Ponraj
From India, Lucknow
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Regards,
R. Ponraj
From India, Lucknow
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Dear Rajesh, Normally it should be between 15 to 20 % of the total revenue. Regards, Suresh M.G
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
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Dear Ragesh,
There is no specific guideline regarding the percentage of salary to Sales/Turnover. In my opinion, the percentage depends on the nature of the industry, the market share enjoyed by the company (monopoly, competitive, or niche, etc.), the industry capacity, and the willingness of the top management to pay, etc.
The current trend in the industry is that employees are paid using two different pay structures - Fixed and Variable pay. While the fixed pay is the assured income for the employee, the variable pay is based on the performance of the individual and the company.
Regards, M.V. KANNAN
From India, Madras
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There is no specific guideline regarding the percentage of salary to Sales/Turnover. In my opinion, the percentage depends on the nature of the industry, the market share enjoyed by the company (monopoly, competitive, or niche, etc.), the industry capacity, and the willingness of the top management to pay, etc.
The current trend in the industry is that employees are paid using two different pay structures - Fixed and Variable pay. While the fixed pay is the assured income for the employee, the variable pay is based on the performance of the individual and the company.
Regards, M.V. KANNAN
From India, Madras
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