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Constructing a Salary Scale

Last post June 30, 2008 01:07 AM by aarti.s. 1 repiles.
June 30, 2008 01:02 AM 1
Total Posts: 61
Join Date: August 24, 2006
Rank: Manager
Post Date: June 30, 2008
Posts: 61
Location: Australia

Constructing a Salary Scale

Dear HR professionals,

I have been given a task to create a salary structure of one of our new company. Can anyone give me a basic outline or steps that should be taken in order to arrive at a competitive and fair salary structure.

Best Regards

Jigar
June 30, 2008 01:052
hrtech
Total Posts: 32
Join Date: August 24, 2006
Rank: Executive
Post Date: June 30, 2008
Points: 160
Location: Australia

Re: Constructing a Salary Scale

The Monthly Salary structure that we have in our Company is :

Basic - 35% of the monthly CTC
HRA - 60% of the Basic
CCA - 40% of the Basic
Transport - Rs. 800 (Fixed for all the employees)
Medical - Rs. 1250 (Starting from the Sr. Executive grade)
LTA - Rs. 1000 (Starting from the Sr. Executive grade)
PF - 12% of the basic
Special Allowance (SA) - This is the balance figure after deducting all the above components from total CTC.
ESIC - 4.75% (CTC less than Rs. 7500)

We do not include the LTA/Medical in Salary Slips as it becomes taxable.

Hope this suffices you.

hrtech
June 30, 2008 01:073
aarti.s
Total Posts: 23
Join Date: August 24, 2006
Rank: Executive
Post Date: June 30, 2008
Points: 115
Location: Australia

Re: Constructing a Salary Scale

hi jigar,

salary stru in our organisation is like this we distribute our ctc in three heads basic, grade based bouquet and Variable allowance

Basic- 45% of bouquet
Bouquet - 30% bouquet (includes HRA, LTA, Medical,Children Education and Conveyance which every staff member is given to configure under whatever head they want to claim.. keeping in mind the Tax liability)
VA - 10-15% of the CTC depending upon function and performance of the person

regards

Aarti Sharma
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