Hi,
I am joining a small IT firm that has its base location in the US and is well established there. They are setting up their office in India, and I, being in HR, have to design the salary structure that would be applicable to all the employees. Currently, there are 5 people, and the size of employees will increase to 40.
Please help me design the salary structure for the IT company with the necessary components to focus on so that employees and employers are happy, and the employees don't have to pay much tax.
Please help me with this.
Thank you,
Lakshmi
lakshmibright@gmail.com
From India, Mumbai
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1I am joining a small IT firm that has its base location in the US and is well established there. They are setting up their office in India, and I, being in HR, have to design the salary structure that would be applicable to all the employees. Currently, there are 5 people, and the size of employees will increase to 40.
Please help me design the salary structure for the IT company with the necessary components to focus on so that employees and employers are happy, and the employees don't have to pay much tax.
Please help me with this.
Thank you,
Lakshmi
lakshmibright@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
Make grades from A0 to A5, with A0 being the lowest and A5 being the highest level in the organization. Decide the years of experience, for example: A0 - 0-2 yrs; A1 - 2-4 yrs; A2 - 4-7 yrs; A3 - 7-10 yrs; A4 - 10-20 yrs, and so on.
The salary structure would be as follows:
- Basic
- HRA
- Conveyance
- Self Development Allowance
- Telephone Reimbursement
- Special Allowance
- Total (A)
- LTA
- P.F.
- E.S.I
- Medical
- Bonus
- Performance Incentive
- Total B
Then add up Total A + B to get the grand total.
ESI is 4.75% of the monthly gross, applicable only to employees with a monthly gross less than 10,000 per month. Performance Incentive is performance-based, always a variable component and is a part of CTC.
I hope this helps.
Regards
From India, New Delhi
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The salary structure would be as follows:
- Basic
- HRA
- Conveyance
- Self Development Allowance
- Telephone Reimbursement
- Special Allowance
- Total (A)
- LTA
- P.F.
- E.S.I
- Medical
- Bonus
- Performance Incentive
- Total B
Then add up Total A + B to get the grand total.
ESI is 4.75% of the monthly gross, applicable only to employees with a monthly gross less than 10,000 per month. Performance Incentive is performance-based, always a variable component and is a part of CTC.
I hope this helps.
Regards
From India, New Delhi
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Creating a Competitive Salary Structure.doc
Compensation Structure.ppt