We are registering our company for retail and wholesale two and three-wheeler spare shops and will be operating from multiple locations in Tamil Nadu. We are hiring salesmen and need to fix the salary for our employees. Since it is a startup, we need to set a fair salary for employees and consider the company benefits as well.
Tamil Nadu Minimum Wage Details
Tamil Nadu Minimum Wage in rupees per day w.e.f April 1, 2016, to March 31, 2017:
Scheduled Employment = Shops and Commercial Establishments
Basic Minimum Wages = 78.88
V.D.A. = 143.35
Total Minimum Wages = 222.23
Questions on Salary Structure
1. How to fix a fair salary for salesmen and avoid any legal issues?
2. For the same suggested salary from question 1, how to create a salary structure that offers mutual benefits for employees and the company?
Design a salary structure where the base salary should be very low and incentives (including attendance allowance, food allowance, performance allowance, and transport allowance, etc.).
I conducted some research and created a salary structure; I request you to point out any flaws and suggest a perfect salary structure.
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Tamil Nadu Minimum Wage Details
Tamil Nadu Minimum Wage in rupees per day w.e.f April 1, 2016, to March 31, 2017:
Scheduled Employment = Shops and Commercial Establishments
Basic Minimum Wages = 78.88
V.D.A. = 143.35
Total Minimum Wages = 222.23
Questions on Salary Structure
1. How to fix a fair salary for salesmen and avoid any legal issues?
2. For the same suggested salary from question 1, how to create a salary structure that offers mutual benefits for employees and the company?
Design a salary structure where the base salary should be very low and incentives (including attendance allowance, food allowance, performance allowance, and transport allowance, etc.).
I conducted some research and created a salary structure; I request you to point out any flaws and suggest a perfect salary structure.
Acknowledge(0)Amend(0)
Understanding Salary Components
Please be specific about "Other Allowance." Note: Washing Allowance is exempted in ESI. HRA can be 50% of Basic. Also, please note that the PF Department is specific that Basic should be 50% of the gross salary; otherwise, they think that we are subterfuging the PF contribution.
It is better to have a different salary structure for CTC less than 2.5 Lacs and above 2.5 Lacs. It is advisable to give "Medical Allowance," "Uniform Allowance," and "Book Allowance" to higher salary brackets as "Reimbursement Allowances" so that TDS won't be attracted. LTA is also better for people with higher salaries.
From India, Chennai
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103Please be specific about "Other Allowance." Note: Washing Allowance is exempted in ESI. HRA can be 50% of Basic. Also, please note that the PF Department is specific that Basic should be 50% of the gross salary; otherwise, they think that we are subterfuging the PF contribution.
It is better to have a different salary structure for CTC less than 2.5 Lacs and above 2.5 Lacs. It is advisable to give "Medical Allowance," "Uniform Allowance," and "Book Allowance" to higher salary brackets as "Reimbursement Allowances" so that TDS won't be attracted. LTA is also better for people with higher salaries.
From India, Chennai
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Employee Benefits.doc