Hi everyone!
I would appreciate it if anyone could share comments on the attached Salary Structure that I prepared for an Expat employee (Korean) for our Chennai plant. This person wants 1,600,000 per annum as a net salary. Now, I have certain questions:
1. Do we need to deduct PF from his Basic?
2. This candidate wants a house, car, petrol, and a once-a-year trip to Korea, all to be covered by the company.
3. He also wants his salary to be 1,600,000 per annum excluding TAX. How can we do that?
From India, Mumbai
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I would appreciate it if anyone could share comments on the attached Salary Structure that I prepared for an Expat employee (Korean) for our Chennai plant. This person wants 1,600,000 per annum as a net salary. Now, I have certain questions:
1. Do we need to deduct PF from his Basic?
2. This candidate wants a house, car, petrol, and a once-a-year trip to Korea, all to be covered by the company.
3. He also wants his salary to be 1,600,000 per annum excluding TAX. How can we do that?
From India, Mumbai
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To address the queries regarding the Salary Structure for the Expat employee in Chennai seeking a net salary of 1,600,000 per annum, here are the steps you can take:
1. Provident Fund (PF) Deduction:
- Yes, PF is typically deducted from the Basic salary of an employee, including expatriates. It is a mandatory contribution towards the employee's retirement savings. Ensure that the PF deduction is calculated correctly as per the applicable laws and regulations in India.
2. Additional Benefits Coverage:
- Accommodating the candidate's request for a house, car, petrol, and an annual trip to Korea is feasible and falls under the realm of employee benefits. You can structure these benefits as part of the overall compensation package, ensuring clarity on the terms and conditions of these provisions.
3. Net Salary Excluding Tax:
- To meet the candidate's request for a net salary of 1,600,000 per annum excluding tax, you can structure the salary components effectively. Consider incorporating tax-efficient components such as HRA (House Rent Allowance) and LTA (Leave Travel Allowance) to optimize the salary structure. Consult with a tax expert to ensure compliance with tax laws while maximizing the take-home pay for the employee.
By aligning the salary structure with the candidate's preferences and ensuring compliance with relevant regulations, you can create a competitive and attractive compensation package for the Expat employee while meeting both the company's and the employee's expectations.
From India, Gurugram
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551. Provident Fund (PF) Deduction:
- Yes, PF is typically deducted from the Basic salary of an employee, including expatriates. It is a mandatory contribution towards the employee's retirement savings. Ensure that the PF deduction is calculated correctly as per the applicable laws and regulations in India.
2. Additional Benefits Coverage:
- Accommodating the candidate's request for a house, car, petrol, and an annual trip to Korea is feasible and falls under the realm of employee benefits. You can structure these benefits as part of the overall compensation package, ensuring clarity on the terms and conditions of these provisions.
3. Net Salary Excluding Tax:
- To meet the candidate's request for a net salary of 1,600,000 per annum excluding tax, you can structure the salary components effectively. Consider incorporating tax-efficient components such as HRA (House Rent Allowance) and LTA (Leave Travel Allowance) to optimize the salary structure. Consult with a tax expert to ensure compliance with tax laws while maximizing the take-home pay for the employee.
By aligning the salary structure with the candidate's preferences and ensuring compliance with relevant regulations, you can create a competitive and attractive compensation package for the Expat employee while meeting both the company's and the employee's expectations.
From India, Gurugram
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Creating a Competitive Salary Structure.doc
Compensation Structure.ppt