As in, how should I set salary slabs in a CA firm? I have been asked to do the hierarchy structure of employees and also I have been given the task of doing appraisals. Please suggest me how I can do it. I'm new to a CA firm working as an HR Executive.
From India, Delhi
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1From India, Delhi
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Dear Tejal, you have not explained how many employees are working there. What is the minimum and maximum salary structure (amount)? Are you covered under PF-ESI or not?
Grading system for hierarchy
The proper hierarchy system can be formed by a Grading System (Grade 1 to Grade 10, as per applicability). The Functional Designation can be integrated with the grades to maintain the hierarchy. The supporting and general employees (up to 3 L CTC) can be given up to 4 Grade, while senior and qualified staff (up to CTC 5 L) can be given 5-7 Grade, and so on.
Even the Grade can be linked with CTC as well.
Salary structure for different grades
The salary structure for lower grades (1-4) can be simple: Basic, DA (only if applicable), HRA, Conv, Medical Allowance, Spl Pay, PF-ESI (if applicable), etc.
However, for higher salary structures, the CTC can also be modified to give them tax benefits. LTA, Tel./Petrol/Car Maintenance reimbursement can be included in the CTC. Since the allowances are tax-exempted against reimbursement (please check if there is any ceiling under the Income Tax Act). The LTA is tax-free as per government-notified rules (2 journeys are tax-free in a 4-year block period).
Moreover, yours is a CA firm, I don’t think you need any advice from outside. You can get valuable advice from your internal sources.
Please work as per the above. If you find any specific query, share the same for further clarification. Fellow members can shed more light on the matter.
From India, Delhi
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Grading system for hierarchy
The proper hierarchy system can be formed by a Grading System (Grade 1 to Grade 10, as per applicability). The Functional Designation can be integrated with the grades to maintain the hierarchy. The supporting and general employees (up to 3 L CTC) can be given up to 4 Grade, while senior and qualified staff (up to CTC 5 L) can be given 5-7 Grade, and so on.
Even the Grade can be linked with CTC as well.
Salary structure for different grades
The salary structure for lower grades (1-4) can be simple: Basic, DA (only if applicable), HRA, Conv, Medical Allowance, Spl Pay, PF-ESI (if applicable), etc.
However, for higher salary structures, the CTC can also be modified to give them tax benefits. LTA, Tel./Petrol/Car Maintenance reimbursement can be included in the CTC. Since the allowances are tax-exempted against reimbursement (please check if there is any ceiling under the Income Tax Act). The LTA is tax-free as per government-notified rules (2 journeys are tax-free in a 4-year block period).
Moreover, yours is a CA firm, I don’t think you need any advice from outside. You can get valuable advice from your internal sources.
Please work as per the above. If you find any specific query, share the same for further clarification. Fellow members can shed more light on the matter.
From India, Delhi
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What is your position in the CA firm? Are you an office manager, articled clerk, or paid staff on the regular roll? Typically, CA firms are run by partners (senior and junior partners with varied years of experience and specialization). You can also have qualified staff (Final & Inter) who are not partners but are on your roll. Then there are office managers, clerks, receptionists, and articled clerks who receive a stipend, as well as students preparing for final exams. Their remuneration can vary depending on their standing and the files they handle. Many specialize in accounts audit, bank audit, internal audit, stock checking, IT filing & appeals, VAT & excise, and other taxes, as well as consultancy for startups, financial analysis, etc. Consult your seniors to arrive at a reasonable remuneration package.
From India, Bangalore
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From India, Bangalore
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Creating a Competitive Salary Structure.doc
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