Redesigning Compensation Structure
We are thinking of redesigning our compensation structure and need to make a final decision on the Base Salary % bracket. The options are to keep it at 30-40%, 40%-50%, or 40%-60% of CTC. Please provide support and assist me in making this decision according to Indian market standards and benchmarks.
Please note that an increase in the basic salary will automatically increase the company's costs, such as an increase in PF, Gratuity, ESI, PL encashment, etc.
Thank you.
From United States, Charlotte
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2We are thinking of redesigning our compensation structure and need to make a final decision on the Base Salary % bracket. The options are to keep it at 30-40%, 40%-50%, or 40%-60% of CTC. Please provide support and assist me in making this decision according to Indian market standards and benchmarks.
Please note that an increase in the basic salary will automatically increase the company's costs, such as an increase in PF, Gratuity, ESI, PL encashment, etc.
Thank you.
From United States, Charlotte
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Shivani, AFAIK, many corporates are fixing 40% as base pay. The more base pay, the more benefits to employees as it covers some terminal benefits. Pon
From India, Lucknow
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From India, Lucknow
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Mr. Sivani,
The pay structure of a company should satisfy the law of the land and minimize the company's variable payments. At the same time, it should be tax-friendly for both employers and employees.
Considerations for Preparing Pay Structure
When you are preparing the pay structure, you should consider the following acts:
1. Minimum Wage Act
2. EPF Act
3. ESIC Act
4. Payment of Gratuity Act
5. Payment of Bonus Act
6. Income Tax Act
All the best!
From India, Vijayawada
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The pay structure of a company should satisfy the law of the land and minimize the company's variable payments. At the same time, it should be tax-friendly for both employers and employees.
Considerations for Preparing Pay Structure
When you are preparing the pay structure, you should consider the following acts:
1. Minimum Wage Act
2. EPF Act
3. ESIC Act
4. Payment of Gratuity Act
5. Payment of Bonus Act
6. Income Tax Act
All the best!
From India, Vijayawada
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