I am working as an HR Associate in a manufacturing company. My senior asked me to design a salary structure for a CTC of 2 Lacs. Can anyone provide guidance on the salary structure for this?
Thanks in advance.
Regards,
Puja Rani
From India, Delhi
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3Thanks in advance.
Regards,
Puja Rani
From India, Delhi
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First of all, I would like to understand a few points regarding your question:
- What will be the basis for designing the Salary Structure?
- Do you have any limitations regarding the design?
- How large is your organization?
- Is your organization attempting to develop a new structure, and have you been assigned this task?
- Is this a test to evaluate your competence?
Below is the Salary Structure based on my experience, primarily from the IT industry segment:
Salary Components:
- Basic
- HRA
- Conveyance
- Medical
- Child Education Allowance
- Special Allowance
- LTA
- Variable Allowance
- Provident Fund (Employee)
- Provident Fund (Employer)
Considering the breakup you would require for a CTC of 2 LPA, here it is:
- Basic (@ 40% on CTC) - 80,000
- HRA (@ 16% on CTC) - 32,000
- Conveyance (@ 800 p/m) - 9,600
- Medical Allowance (@ 1250 p/m) - 15,000
- Special Allowance (CTC minus other components) - 44,200
- PF - Employee (@ 12% of basic) - 9,600
- PF - Employer (@ 12% of basic) - 9,600
The above breakup is provided considering the CTC and aiming to be employee-friendly. Please revert if this information is beneficial.
Regards,
Jeevan
From India, Thiruvananthapuram
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- What will be the basis for designing the Salary Structure?
- Do you have any limitations regarding the design?
- How large is your organization?
- Is your organization attempting to develop a new structure, and have you been assigned this task?
- Is this a test to evaluate your competence?
Below is the Salary Structure based on my experience, primarily from the IT industry segment:
Salary Components:
- Basic
- HRA
- Conveyance
- Medical
- Child Education Allowance
- Special Allowance
- LTA
- Variable Allowance
- Provident Fund (Employee)
- Provident Fund (Employer)
Considering the breakup you would require for a CTC of 2 LPA, here it is:
- Basic (@ 40% on CTC) - 80,000
- HRA (@ 16% on CTC) - 32,000
- Conveyance (@ 800 p/m) - 9,600
- Medical Allowance (@ 1250 p/m) - 15,000
- Special Allowance (CTC minus other components) - 44,200
- PF - Employee (@ 12% of basic) - 9,600
- PF - Employer (@ 12% of basic) - 9,600
The above breakup is provided considering the CTC and aiming to be employee-friendly. Please revert if this information is beneficial.
Regards,
Jeevan
From India, Thiruvananthapuram
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In addition to the queries asked by Mr. Jeevan, certain points should also be kept in mind:
- Whether the organization has a universal one-salary policy, i.e., the same structure for all levels of hierarchy.
- Because the structure is to be drawn for a manufacturing company, there are many allowances given in the factory.
- Please mention whether it should be in favor of the company or the employee (both ways are possible).
I am too late to respond.
Regards
From India, Mumbai
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- Whether the organization has a universal one-salary policy, i.e., the same structure for all levels of hierarchy.
- Because the structure is to be drawn for a manufacturing company, there are many allowances given in the factory.
- Please mention whether it should be in favor of the company or the employee (both ways are possible).
I am too late to respond.
Regards
From India, Mumbai
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I am unable to attach an Excel sheet here. Please extract the data below to an Excel sheet.
CTC Details
CTC: 16667 200000
GRADE: Executive
CITY: Non-Metro
PF TYPE: Full on Basic
Components
A) Taxable Components
Basic: 6667 80000
Special Allowance: 4899 58792
TOTAL (A): 11566 138792
B) Statutory Components
Provident Fund (Employer's Cont.): 800 9600
Gratuity: 279 3344
ESIC (Employer's Cont.): 0 0
Statutory Bonus: 555 6664
TOTAL (B): 1634 19608
C) Allowance & Reimbursement (Non-Taxable)
House Rent Allowance: 2667 32000
Conveyance Allowance: 800 9600
Medical Reimbursement: 0 0
Telephone Reimbursement: 0 0
Food Coupons: 0 0
Internet Expense Reimbursement: 0 0
Leave Travel Allowance: 0 0
TOTAL (C): 3467 41600
D) Optional Allowance & Reimbursement (Non-Taxable)
Periodical Journals: 0 0
Dress Allowance: 0 0
Car Reimbursement: 0 0
Driver Salary: 0 0
Child Education Allowance: 0 0
TOTAL (D): 0 0
CTC: 16667 200000
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CTC Details
CTC: 16667 200000
GRADE: Executive
CITY: Non-Metro
PF TYPE: Full on Basic
Components
A) Taxable Components
Basic: 6667 80000
Special Allowance: 4899 58792
TOTAL (A): 11566 138792
B) Statutory Components
Provident Fund (Employer's Cont.): 800 9600
Gratuity: 279 3344
ESIC (Employer's Cont.): 0 0
Statutory Bonus: 555 6664
TOTAL (B): 1634 19608
C) Allowance & Reimbursement (Non-Taxable)
House Rent Allowance: 2667 32000
Conveyance Allowance: 800 9600
Medical Reimbursement: 0 0
Telephone Reimbursement: 0 0
Food Coupons: 0 0
Internet Expense Reimbursement: 0 0
Leave Travel Allowance: 0 0
TOTAL (C): 3467 41600
D) Optional Allowance & Reimbursement (Non-Taxable)
Periodical Journals: 0 0
Dress Allowance: 0 0
Car Reimbursement: 0 0
Driver Salary: 0 0
Child Education Allowance: 0 0
TOTAL (D): 0 0
CTC: 16667 200000
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Salary structure CTC 15000.xlsx
Creating a Competitive Salary Structure.doc