Hi,
I am with a US-based IT company that has recently established operations in India. I am in the process of designing the salary packages for our offshore employees. Could anyone please assist me in creating a basic yet effective package?
Thanks, Natasha
From United States, Newark
Acknowledge(0)
Amend(0)
I am with a US-based IT company that has recently established operations in India. I am in the process of designing the salary packages for our offshore employees. Could anyone please assist me in creating a basic yet effective package?
Thanks, Natasha
From United States, Newark
Acknowledge(0)Amend(0)
Hi Natasha,
The various salary components in India are as follows:
- Basic
- HRA
- Dearness Allowance
- Special Allowance (optional)
- Conveyance Allowance
- Educational Allowance
- Provident fund
You could set percentages of basic for all the allowances. Provident fund is 12% of the basic + Dearness Allowance.
You could also work out an amount for Leave Travel Allowance and Annual bonus.
Hope this helps.
Sherine
From India, Bangalore
Acknowledge(0)Amend(0)
20The various salary components in India are as follows:
- Basic
- HRA
- Dearness Allowance
- Special Allowance (optional)
- Conveyance Allowance
- Educational Allowance
- Provident fund
You could set percentages of basic for all the allowances. Provident fund is 12% of the basic + Dearness Allowance.
You could also work out an amount for Leave Travel Allowance and Annual bonus.
Hope this helps.
Sherine
From India, Bangalore
Acknowledge(0)Amend(0)
Thanks Shirene, This certainly helps.. I was wondering if the percentages on basic are fixed or does it vary from company to company? Other than the PF that is. Thanks, Natasha
From United States, Newark
Acknowledge(0)Amend(0)
From United States, Newark
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
EMPLOYEES' COMPENSATION ACT - IMP- PROVISIONS IN TELUGU VERSION.pdf
Salary & Compensation Guidelines.zip