I am an HR Generalist in an Engineering Company, and my management has entrusted me with the task of designing the salary structure and grades for the company. I have worked on a few components. Now, I would like to see samples of salary components and compare them with the ones I have created. I would be pleased if someone could help me by providing a sample salary structure and explaining the usage of its components.
From India, Hyderabad
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4From India, Hyderabad
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Sample Salary Structure with grades have been attached. If someone could suggest to upgrade the same.
From India, Hyderabad
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From India, Hyderabad
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Hi,
This was a really good one. Please help me in understanding the tax implications of various allowances stated. Are the allowances given the maximum amounts that would be free from tax implications for the employee?
Sundar
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This was a really good one. Please help me in understanding the tax implications of various allowances stated. Are the allowances given the maximum amounts that would be free from tax implications for the employee?
Sundar
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Hi,
I have some suggestions regarding your salary structure. In the case of Medical Allowance, up to 15000 is exempted from income tax if bills are submitted. Medical Allowance should be paid as reimbursement. For those covered under ESI, they will not receive Medical Allowance.
LTA should be paid as reimbursement.
Thanks,
Vaitheeswaran
From India, Bangalore
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I have some suggestions regarding your salary structure. In the case of Medical Allowance, up to 15000 is exempted from income tax if bills are submitted. Medical Allowance should be paid as reimbursement. For those covered under ESI, they will not receive Medical Allowance.
LTA should be paid as reimbursement.
Thanks,
Vaitheeswaran
From India, Bangalore
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Hi,
It's very good data for study and very helpful too. I'm also actually looking for similar data. What is the strength of your company? I'm looking for data where the company size is 150-200 employees, and we are into Engineering Design services and Software Enterprises.
Regards,
Anu
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It's very good data for study and very helpful too. I'm also actually looking for similar data. What is the strength of your company? I'm looking for data where the company size is 150-200 employees, and we are into Engineering Design services and Software Enterprises.
Regards,
Anu
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Its really a good one but can you share with how have you structured it. What are the areas you kept in your mind while structuring it. Pls...............
From India, Bangalore
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From India, Bangalore
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Hi,
Please adjust the salary structure by reducing the Basic Pay and increasing other allowances such as HRA, TA, etc. This change will result in paying less tax, benefiting the employees.
Regards,
Chandrasekar
Chennai
From India, Madras
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Please adjust the salary structure by reducing the Basic Pay and increasing other allowances such as HRA, TA, etc. This change will result in paying less tax, benefiting the employees.
Regards,
Chandrasekar
Chennai
From India, Madras
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Sir i hav seen your posting regarding salary grsdes. Please let me know at ahat time interval you give increments Sherin
From India, Bangalore
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From India, Bangalore
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That's a very good piece of material. Can you help me understand on what basis the grades have been categorized? Also, to my knowledge, the grades would be organization-specific, isn't it? Please correct me if I am wrong.
Thanks in advance
From India, Hyderabad
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Thanks in advance
From India, Hyderabad
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Dear Mr. Prabhu ji,
Good contribution. However, the formulas were missed. Could you please explain how you divide the gross wages/salary into other categories? If you provide the formulas for these categories, it would be beneficial for everyone. If you have them, please share them with me at: pbskumar2000@yahoo.com
Regards,
PBS KUMAR
From India, Kakinada
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Good contribution. However, the formulas were missed. Could you please explain how you divide the gross wages/salary into other categories? If you provide the formulas for these categories, it would be beneficial for everyone. If you have them, please share them with me at: pbskumar2000@yahoo.com
Regards,
PBS KUMAR
From India, Kakinada
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Dear comrades, I would like to know the Fringe Benefit offered by the company also.. So that we can calculate the CTC; which could be the better node for putting our demand. smile with visu.. :)
From India, Madras
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From India, Madras
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Kindly check the attached PPTs posted by me earlier in the following posts. Please email me if you have any problems.
https://www.citehr.com/33861-comp-be...-part-2-a.html
https://www.citehr.com/33610-comp-ben-notes.html
You can reach me at
should you have any problems.
Chao
From India, Mumbai
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https://www.citehr.com/33861-comp-be...-part-2-a.html
https://www.citehr.com/33610-comp-ben-notes.html
You can reach me at
Chao
From India, Mumbai
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Hi!
This Salary Structure is a very old model and is usually referred to as the "Thirty-Year Employment Chart." I have also seen a similar chart in the Middle East, which I called the "One Hundred-Year Salary Chart."
As shown by the given example, each Job Grade has thirty (30) steps and an equal increment of Rs 200.
With that information, we can easily conclude that the company's methodology for increasing salaries every year is based on seniority. Therefore, every year, all employees receive an increment of Rs 200, regardless of their performance.
This salary structure can last the employment life of many of the original employees. In fact, the first batch of employees would be retiring before they can reach the 30th step.
Modern salary structures are reviewed and adjusted every three (3) to five (5) years. Their rates are also benchmarked with industry rates; otherwise, they may not be able to fulfill the second principle in Compensation — i.e., External Competitiveness.
Today's organizations and employees would prefer a performance-based methodology. Outstanding performers in many organizations would like to be paid more than the ordinary performers and/or non-performers.
Also, modern salary structures provide more leeway to management regarding the annual increases. Hence, many structures would simply provide the minimum, median, and maximum rates and allow the immediate managers to recommend the appropriate increases per employee — depending on the result of their annual performance review.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
(helps improve corporate governance worldwide, especially in Asia, the Middle East, Africa, and the Pacific Region)
From Philippines, Parañaque
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This Salary Structure is a very old model and is usually referred to as the "Thirty-Year Employment Chart." I have also seen a similar chart in the Middle East, which I called the "One Hundred-Year Salary Chart."
As shown by the given example, each Job Grade has thirty (30) steps and an equal increment of Rs 200.
With that information, we can easily conclude that the company's methodology for increasing salaries every year is based on seniority. Therefore, every year, all employees receive an increment of Rs 200, regardless of their performance.
This salary structure can last the employment life of many of the original employees. In fact, the first batch of employees would be retiring before they can reach the 30th step.
Modern salary structures are reviewed and adjusted every three (3) to five (5) years. Their rates are also benchmarked with industry rates; otherwise, they may not be able to fulfill the second principle in Compensation — i.e., External Competitiveness.
Today's organizations and employees would prefer a performance-based methodology. Outstanding performers in many organizations would like to be paid more than the ordinary performers and/or non-performers.
Also, modern salary structures provide more leeway to management regarding the annual increases. Hence, many structures would simply provide the minimum, median, and maximum rates and allow the immediate managers to recommend the appropriate increases per employee — depending on the result of their annual performance review.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
(helps improve corporate governance worldwide, especially in Asia, the Middle East, Africa, and the Pacific Region)
From Philippines, Parañaque
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Hi,
I am attaching a PDF where you will get a basic idea and knowledge of what allowances are taxable and what the limits are. It includes information on which allowances you can include and exclude.
For any further queries, you can email me at anamikasureka@gmail.com.
With regards,
Anamika Sureka
"Knowledge is a weapon" icon1:
From India, Calcutta
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I am attaching a PDF where you will get a basic idea and knowledge of what allowances are taxable and what the limits are. It includes information on which allowances you can include and exclude.
For any further queries, you can email me at anamikasureka@gmail.com.
With regards,
Anamika Sureka
"Knowledge is a weapon" icon1:
From India, Calcutta
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I just want to share one thing that whatever be your employee's performance, the employer must provide a 10% hike in salary. So, based on it, we have to design a salary structure.
From India, Mumbai
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From India, Mumbai
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Salary and wages are magical words and are not defined properly by such acts. Can a persons basic is Rs.100/-per month and gross salary is 10000/- pm?
From India, Guwahati
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From India, Guwahati
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Is the labor rules are also applicable to the IT industry? That also small one because I have been working in an IT solution company, but they are not aware of all these rules. Hence, please solve my query.
From India, Mumbai
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From India, Mumbai
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Dear Sir,
I am thankful for your information regarding the salary structure. If the gross salary is 3850, then can we calculate 55% of the basic for the Basic and 40% of the Basic for the HRA? The conveyance remains constant at Rs. 500, and the difference amount can be adjusted as Education Allowance. What do you suggest, sir?
From India, Hyderabad
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I am thankful for your information regarding the salary structure. If the gross salary is 3850, then can we calculate 55% of the basic for the Basic and 40% of the Basic for the HRA? The conveyance remains constant at Rs. 500, and the difference amount can be adjusted as Education Allowance. What do you suggest, sir?
From India, Hyderabad
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Hi Wilson,
The Excel sheet looks good. I noticed that the Basic salary varies from 56% to 40% across different grades and other components. I understand that many of our CiteHR members are eager to learn more about the position versus grade, experience-wise, and the formula used.
Regarding the formula, I observed that all the components are not rounded to whole numbers but include fractions as well. It's best to avoid this as the HR Payroll specialists may find it challenging to memorize and recall the breakdowns for numerous grades such as S1, S2, M1, M2, etc.
Great work, Wilson.
Regards, Chandru Chennai
From India, Madras
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The Excel sheet looks good. I noticed that the Basic salary varies from 56% to 40% across different grades and other components. I understand that many of our CiteHR members are eager to learn more about the position versus grade, experience-wise, and the formula used.
Regarding the formula, I observed that all the components are not rounded to whole numbers but include fractions as well. It's best to avoid this as the HR Payroll specialists may find it challenging to memorize and recall the breakdowns for numerous grades such as S1, S2, M1, M2, etc.
Great work, Wilson.
Regards, Chandru Chennai
From India, Madras
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Dear Ed Llarena, Jr.,
I really like your comments. I am currently in the stage of preparing the salary structure for our employees. It would help me a lot if you could please send me the latest salary structure along with the grading and promotion system.
Thanks,
Sughandh
From India, Ludhiana
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I really like your comments. I am currently in the stage of preparing the salary structure for our employees. It would help me a lot if you could please send me the latest salary structure along with the grading and promotion system.
Thanks,
Sughandh
From India, Ludhiana
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Hi Sherin,
Increment should be based purely on performance and on an annual basis. If you feel employees are performing well, you need to keep them motivated by proposing some sort of incentive. If your increment is not on an annual basis, then you have to follow the same practice for others, and this will create an imbalance in your HR budget.
Regards,
Saji
From United Arab Emirates, Abu Dhabi
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Increment should be based purely on performance and on an annual basis. If you feel employees are performing well, you need to keep them motivated by proposing some sort of incentive. If your increment is not on an annual basis, then you have to follow the same practice for others, and this will create an imbalance in your HR budget.
Regards,
Saji
From United Arab Emirates, Abu Dhabi
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Good pay structure. I have been searching for help with a pay structure for manufacturing that would include, for example, a Welder at a starting rate with minimal experience, then a Welder with 3 to 5 years of experience, and finally, one with 5 years or more for a starting pay. The example would be structured as follows:
$20.00 - Welder I - 0 to 2 years of experience - high school diploma or GED - etc...
$21.50 - Welder II - 3 to 5 years of experience - " " - has been in the gasket industry for 3 years - knows Tig, Mig
$23.00 - Welder III - 5 or more years of experience - Welder certification - supervised a team...
Is anyone familiar with this type of pay structure?
From United States, Houston
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$20.00 - Welder I - 0 to 2 years of experience - high school diploma or GED - etc...
$21.50 - Welder II - 3 to 5 years of experience - " " - has been in the gasket industry for 3 years - knows Tig, Mig
$23.00 - Welder III - 5 or more years of experience - Welder certification - supervised a team...
Is anyone familiar with this type of pay structure?
From United States, Houston
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