Hi, Can anyone suggest me what kind of salary concerns(benefits) should provide to employees including percentage in a software industry. For example: 1. PF - % ? 2. Gratuity - % ? 3. ESI - % ?
From India, Visakhapatnam
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1From India, Visakhapatnam
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Dear GeethaNirmalkar, The salary structure for a software company/industry is indeed either skill-based, work-based, or based on the length of the project. You have to consider the fundamentals of service conditions in all cases so that employees do not end up as victims. The real nature of work in this field differs significantly from other services. Factors such as sitting before a computer/laptop and the potential long-term impacts should also be considered to enhance employee-employer relations.
Proposed Salary Structure:
The proposed salary structure could be as follows:
- Basic or sum assured: Rs.20,000/-
Additional benefits:
- House rent allowance: 20% of the basic pay (rent + other charges) or accommodation based on the place of work. For metropolitan cities, it could be 50%, rural areas 20%, and semi-metro/semi-urban areas 40% of the sum assured or fixed pay band.
- Health benefits: 5% of the sum assured.
- Conveyance/transportation: Minimum 10% or Rs. 5000/-, whichever is applicable.
- Family compensation or living away from family: 15% of basic pay/band.
- Industry/dearness allowance: 50%, subject to a yearly enhancement of 5% or based on industry profits, with an annual addition or reduction of Rs. 2500/-.
- Enhancement of the basic sum assured (cost to the company): 15% for every year of service.
- Travelling allowance: Based on the company's policy and merits for visits to other places.
- PF: 12% of basic pay with a target of Rs. 6500/-. If the sum assured or cost to the company is already above Rs. 6500/-, it is not mandatory to deduct PF, unless the company chooses to do so.
- ESI as per the Government policy; considering a medical claim in favor of the employee would be beneficial.
The cost to the company or basic pay may be adjusted based on the company's financial situation or policies, taking into account the employee's experience and other factors set by the owner.
It is advisable to inquire further about salary structures in the software industry for better salary fixation.
Best regards, Gopinath.v
From India, Arcot
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Proposed Salary Structure:
The proposed salary structure could be as follows:
- Basic or sum assured: Rs.20,000/-
Additional benefits:
- House rent allowance: 20% of the basic pay (rent + other charges) or accommodation based on the place of work. For metropolitan cities, it could be 50%, rural areas 20%, and semi-metro/semi-urban areas 40% of the sum assured or fixed pay band.
- Health benefits: 5% of the sum assured.
- Conveyance/transportation: Minimum 10% or Rs. 5000/-, whichever is applicable.
- Family compensation or living away from family: 15% of basic pay/band.
- Industry/dearness allowance: 50%, subject to a yearly enhancement of 5% or based on industry profits, with an annual addition or reduction of Rs. 2500/-.
- Enhancement of the basic sum assured (cost to the company): 15% for every year of service.
- Travelling allowance: Based on the company's policy and merits for visits to other places.
- PF: 12% of basic pay with a target of Rs. 6500/-. If the sum assured or cost to the company is already above Rs. 6500/-, it is not mandatory to deduct PF, unless the company chooses to do so.
- ESI as per the Government policy; considering a medical claim in favor of the employee would be beneficial.
The cost to the company or basic pay may be adjusted based on the company's financial situation or policies, taking into account the employee's experience and other factors set by the owner.
It is advisable to inquire further about salary structures in the software industry for better salary fixation.
Best regards, Gopinath.v
From India, Arcot
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Employee Benefits.doc