Can the basic pay component of the salary of an employee (of an Indian IT company) at a higher grade (suppose Director) be lower than an employee at a lower grade (suppose Manager)? Please provide any reference to the Indian laws/regulations if any.
From India, Kolkata
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From India, Kolkata
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No laws or regulations prohibit salary structure payment. It is common in the IT industry for the salary of an employee to be determined by the market value at the time of recruitment and subsequently based on their performance. The performer who contributes earns more than their boss. Nothing prohibits this practice, which is why the salary structure for top management in most industries is kept confidential.
From India, Madras
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302From India, Madras
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Creating a Competitive Salary Structure.doc
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