Dear CiteHR members and seniors, I need to design a salary structure and basic pay plan for my organization. I am a fresher with little experience in HR and would appreciate help from all of you.
Designing the Basic Pay Structure
How should I design the basic pay structure? I have fixed CTC ranges for all grades. What should be the basic pay, and how many increments are possible within a particular grade?
Seniors, please assist me as soon as possible.
Thanks and Regards,
Minal Patil
From India, Pune
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1Designing the Basic Pay Structure
How should I design the basic pay structure? I have fixed CTC ranges for all grades. What should be the basic pay, and how many increments are possible within a particular grade?
Seniors, please assist me as soon as possible.
Thanks and Regards,
Minal Patil
From India, Pune
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Hi Minal, Please find attached file for salary stucture calculator which I got from this site only. It may be helpful to you.
From India, Pune
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From India, Pune
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Salary Breakup Structure
I am providing you with a very simple structure of Salary Breakup:
- **CTC:** (whatever salary)
- **Basic + DA:** 20% to 40% on CTC
- **HRA:** 40% to 50% on Basic + DA
- **M.A:** Fixed 15000
- **T.A:** Fixed 9600
- **LTA:** 5% to 10% on CTC
- **PF:** 12% on Basic + DA
- **Bonus:** 8.33% on Basic + DA
- **Gratuity:** 4.82%
- **Performance Incentive:** Other Allowances
Calculate according to percentage, then subtract from CTC and manage the remaining amount as performance incentive and other allowances.
ESI Benefits
If your company provides ESI benefits:
- **Total Contribution:** 6.5%
- **Employer:** 4.75%
- **Employee:** 1.75%
If you need more information related to the salary structure, you can email me at [Email Removed For Privacy Reasons].
Warm Regards,
Asha Saini
From India, Delhi
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I am providing you with a very simple structure of Salary Breakup:
- **CTC:** (whatever salary)
- **Basic + DA:** 20% to 40% on CTC
- **HRA:** 40% to 50% on Basic + DA
- **M.A:** Fixed 15000
- **T.A:** Fixed 9600
- **LTA:** 5% to 10% on CTC
- **PF:** 12% on Basic + DA
- **Bonus:** 8.33% on Basic + DA
- **Gratuity:** 4.82%
- **Performance Incentive:** Other Allowances
Calculate according to percentage, then subtract from CTC and manage the remaining amount as performance incentive and other allowances.
ESI Benefits
If your company provides ESI benefits:
- **Total Contribution:** 6.5%
- **Employer:** 4.75%
- **Employee:** 1.75%
If you need more information related to the salary structure, you can email me at [Email Removed For Privacy Reasons].
Warm Regards,
Asha Saini
From India, Delhi
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Dear Ms. Minal,
Any salary restructuring or revision is one of the important HR processes that significantly impact an organization. It is crucial to be extremely careful in designing these policies, as any misstep can affect employee morale and make talent retention challenging. There are several key points to consider during salary restructuring, and having a good understanding of your organization is essential.
Key Points to Consider Before Salary Restructuring
Below are some details to have handy before beginning the process:
1. What kind of business are you in?
2. Size of the organization
3. Any joint ventures
4. Presence (domestic and international, if applicable)
5. Total manpower strength
6. Present sales / FTE
7. Statutory compliances
8. Present cadres and CTC details
9. Any specific HR issues that need addressing through this process
10. Present performance management system
11. Any specific budget or target concerning CTC expenditure
I hope this information will assist you in understanding the subject matter. Once you have gathered the necessary information, we can explore actual salary restructuring options. There are various approaches to handling this process.
Regards,
Santosh
From India, Mumbai
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Any salary restructuring or revision is one of the important HR processes that significantly impact an organization. It is crucial to be extremely careful in designing these policies, as any misstep can affect employee morale and make talent retention challenging. There are several key points to consider during salary restructuring, and having a good understanding of your organization is essential.
Key Points to Consider Before Salary Restructuring
Below are some details to have handy before beginning the process:
1. What kind of business are you in?
2. Size of the organization
3. Any joint ventures
4. Presence (domestic and international, if applicable)
5. Total manpower strength
6. Present sales / FTE
7. Statutory compliances
8. Present cadres and CTC details
9. Any specific HR issues that need addressing through this process
10. Present performance management system
11. Any specific budget or target concerning CTC expenditure
I hope this information will assist you in understanding the subject matter. Once you have gathered the necessary information, we can explore actual salary restructuring options. There are various approaches to handling this process.
Regards,
Santosh
From India, Mumbai
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Creating a Competitive Salary Structure.doc
Salary Structure.zip