Hi All,
I am working with a Pharma company. They do not have any standardized salary break-up system. However, I am facing a problem when new joiners (Senior-level persons) ask for the salary break-up.
Could someone please advise me on how to standardize this? What are the basic components of salary, and how can this be structured so that both the company and employees are satisfied?
Thank you in advance and looking forward to receiving guidance from seniors.
Regards, Ruchika Sharma
From India, Delhi
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I am working with a Pharma company. They do not have any standardized salary break-up system. However, I am facing a problem when new joiners (Senior-level persons) ask for the salary break-up.
Could someone please advise me on how to standardize this? What are the basic components of salary, and how can this be structured so that both the company and employees are satisfied?
Thank you in advance and looking forward to receiving guidance from seniors.
Regards, Ruchika Sharma
From India, Delhi
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For example, CTC - 480,000 INR, which is 40,000 per month.
Components of Salary:
1) Basic is calculated between 30% to 60% based on the company or designation, with the standard being 35% to 40% of CTC.
2) HRA is calculated on the basic salary as follows: for rural areas - 20% of basic, non-metro - 30% to 40% of basic, and metro - 50% of basic.
3) MA - lump sum
4) TA - lump sum
5) SA - Adjustable amount (Gross salary - (basic + HRA + MA + TA))
Gross salary - CTC - (Employer's PF / and annual benefits like LTA, MEDICLAIM, etc).
Now, the monthly break-up amounts to 40,000.
From India, Delhi
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5Components of Salary:
1) Basic is calculated between 30% to 60% based on the company or designation, with the standard being 35% to 40% of CTC.
2) HRA is calculated on the basic salary as follows: for rural areas - 20% of basic, non-metro - 30% to 40% of basic, and metro - 50% of basic.
3) MA - lump sum
4) TA - lump sum
5) SA - Adjustable amount (Gross salary - (basic + HRA + MA + TA))
Gross salary - CTC - (Employer's PF / and annual benefits like LTA, MEDICLAIM, etc).
Now, the monthly break-up amounts to 40,000.
From India, Delhi
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Hi Ruchuika, Can i have your senior levels salary perk details so that will send you one excel format?
From India, Hyderabad
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From India, Hyderabad
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The Madras High Court in the case of Reynolds Pens India Pvt Ltd and other petitioners (‘Petitioners’) vs Regional Provident Fund Commissioner (‘RPFC’) has held that certain allowances such as Conveyance, Educational Allowances, Food concession, Medical, Special Holidays, Night Shift Incentive, City Compensatory Allowances etc. should be treated as part of Basic wages under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (‘EPF Act’). what bearing this has on 'wages"as per gratuity act as many employers give basic plus other allownaces as remuneration to employees
From India, Chennai
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From India, Chennai
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Hello,
I would like to inquire, can the basic calculated change every year? Suppose the basic amount given in one year is 1.5L, can it be reduced to 90 in the next fiscal year, with the remaining balance put in as "Other allowances"? I work for an NGO and am just trying to understand the structure that can be formulated.
From India, Mumbai
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I would like to inquire, can the basic calculated change every year? Suppose the basic amount given in one year is 1.5L, can it be reduced to 90 in the next fiscal year, with the remaining balance put in as "Other allowances"? I work for an NGO and am just trying to understand the structure that can be formulated.
From India, Mumbai
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Typical salary breakup.jpg
Salary breakup format.xls