Dear Friends,
My company has recently diversified into the Hotel Industry. I take care of the complete compensation and benefits profile for my current division of the company and now have to design compensation structures for my Hotel division as well. Friends who are already working in the Hotel Industry, I request you to please share what salary heads you are using for designing CTC.
Kindly advise.
Regards,
Shilpi
From India, New Delhi
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5My company has recently diversified into the Hotel Industry. I take care of the complete compensation and benefits profile for my current division of the company and now have to design compensation structures for my Hotel division as well. Friends who are already working in the Hotel Industry, I request you to please share what salary heads you are using for designing CTC.
Kindly advise.
Regards,
Shilpi
From India, New Delhi
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Dear Shilpi,
I am not from the hotel industry but can help you design the salary structure. After you get the approval of the gross amount of the incumbent, you are required to make the break-ups. The general approach is as follows (PER MONTH):
Basic - 50% of the Gross
HRA - 30%
Conveyance reimbursement - 11.67%
Medical - 8.67%
In addition:
LTA - is generally 10 to 14%
Gratuity - 4.85%
PF - 12%
Others like communication reimbursement, medical insurance, all can be added depending on the levels and designation.
Concepts like Target Variable Pay, which is around 10% of the gross, can also be structured. By this, you can frame:
Gross
CTC
TTR (Total target remuneration).
Hope this will be of some use to you.
BISHU
From India, Patna
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I am not from the hotel industry but can help you design the salary structure. After you get the approval of the gross amount of the incumbent, you are required to make the break-ups. The general approach is as follows (PER MONTH):
Basic - 50% of the Gross
HRA - 30%
Conveyance reimbursement - 11.67%
Medical - 8.67%
In addition:
LTA - is generally 10 to 14%
Gratuity - 4.85%
PF - 12%
Others like communication reimbursement, medical insurance, all can be added depending on the levels and designation.
Concepts like Target Variable Pay, which is around 10% of the gross, can also be structured. By this, you can frame:
Gross
CTC
TTR (Total target remuneration).
Hope this will be of some use to you.
BISHU
From India, Patna
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Creating a Competitive Salary Structure.doc
Compensation Structure.ppt