Hi, we are a startup company. We need to pay two different employees 6 lakhs and 5 lakhs respectively. So, what kind of salary components would benefit both the company and the employees? Please help us in evaluating the best salary components. Thanks for your help in advance.
Regards,
From India, Hyderabad
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Regards,
From India, Hyderabad
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find enclosed a proposed structure for CTC 5 lacs. More options can be tried for best results. source: hr.rajivchawla.com
From India, Gurgaon
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3From India, Gurgaon
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Thank you for the valuable suggestion, Sir. As we are a startup company, could we implement a payment structure where we initiate the employee's salary at a lower rate and increment it upon completion of the year to ensure that the CTC remains at 5 lakhs? Please assist in resolving this query.
Thank you for your help, Sir.
From India, Hyderabad
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Thank you for your help, Sir.
From India, Hyderabad
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Strategies for Structuring Salary Components
Increase the annual portion in the structure. For example:
1. Include performance-linked pay or incentives as a major component of CTC, which will be payable after the year-end.
2. Keep Basic at a high percentage so that Bonus, Gratuity, and Leave encashment grab a significant amount.
3. Pay Bonus on the full basic (sometimes companies pay Bonus on the maximum statutory ceiling, i.e., 3500/-).
4. Provide for Gratuity.
This way, the monthly payout will be reduced, and a major liability will be shifted to year-end or thereafter. Another way could be to hire at a lower CTC with an interim hike commitment, i.e., to hire at a lower salary but increase it after, say, 6 months based on performance. However, this solely depends on the mutual understanding of the employer and employee.
From India, Gurgaon
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Increase the annual portion in the structure. For example:
1. Include performance-linked pay or incentives as a major component of CTC, which will be payable after the year-end.
2. Keep Basic at a high percentage so that Bonus, Gratuity, and Leave encashment grab a significant amount.
3. Pay Bonus on the full basic (sometimes companies pay Bonus on the maximum statutory ceiling, i.e., 3500/-).
4. Provide for Gratuity.
This way, the monthly payout will be reduced, and a major liability will be shifted to year-end or thereafter. Another way could be to hire at a lower CTC with an interim hike commitment, i.e., to hire at a lower salary but increase it after, say, 6 months based on performance. However, this solely depends on the mutual understanding of the employer and employee.
From India, Gurgaon
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Compensation Structure.ppt
MODEL STRUCTURE OF COMPENSATION.do c