Dear Seniors,
I am Nisha Balasubramanian working as an Senior Officer HR. As the financial year is beginning, my bosses want me to device a salary structure keeping the current budget in mind. We are in BPO industry (Medical Transcription) in Bombay and in the past I have never devised any such salary break up.
Please help.
From India, Mumbai
I am Nisha Balasubramanian working as an Senior Officer HR. As the financial year is beginning, my bosses want me to device a salary structure keeping the current budget in mind. We are in BPO industry (Medical Transcription) in Bombay and in the past I have never devised any such salary break up.
Please help.
From India, Mumbai
Hi!
I think you need professional help.
The Design of a Salary Structure is a critical dimension in an organization. It must be designed by experts based on the following compensation principles: internal equity, external competitiveness, company affordability (budget), and company sustainability (long term resources).
If you have budget, please contact us thru this email address or thru the following numbers: 0632-7768537 (landline) or 063-916-762-7218 (mobile).
Visit my site for some information of Job Evaluation and Design of Salary Structure.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
From Philippines, Parañaque
89I think you need professional help.
The Design of a Salary Structure is a critical dimension in an organization. It must be designed by experts based on the following compensation principles: internal equity, external competitiveness, company affordability (budget), and company sustainability (long term resources).
If you have budget, please contact us thru this email address or thru the following numbers: 0632-7768537 (landline) or 063-916-762-7218 (mobile).
Visit my site for some information of Job Evaluation and Design of Salary Structure.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
From Philippines, Parañaque
Hi Nisha,
Hey..don't panic ..if you do ..you would find it difficult to do this task..
If you ask me frankly..its not difficult at all..there are a couple of things you need to do:-
A. The basic structure of compensation :- its available in this site with detailed break -ups and am pasting herewith.
The monthly payroll:-
Basic Salary
HRA ( 50% of Basic for 4 major cities & 40% for other cities)
Conveyance allowance Rs 800/pm (excess would be taxed)
Annuals given as reimbursement
Commissions/Incentives
Bonus
Child Education Allowance (better give as reimbursement to save tax)
Child Hostel Allowance (better give as reimbursement to save tax)
City Compensatory Allowance
Leave Travel Allowance ( same as basic allowance or two times for senior cadre- encashable only once in two years to save tax with supportings as per the income tax)
Lunch Allowance
Medical reimbursement to a maximium of 15,000/ (otherwise it will go in tax and to be given on pro-rata basis on submission of bills)
Newspaper allowance (better give as reimbursement to save tax)
Special Allowance
Gift voucher
Club membership (save tax)
Uniform Maintenance
Professional Enrichment Allowance
Entertaintment (Reimbursement) etc.,
Vehicle Allowance
Phone Allowance
Fuel Allowance (Petrol/Diesel)
Driver's Allowance
Mobile/Cell Phone Allowance
Internet Access Allowance
Academic/ Professional Membership Allowance
Night Shift Allowance
So pick and choose the ones which are suitable to your organization. The recent issue of FBTs would clarified by Finance Minister in Apr'04.
B.Decide the bandwith of the base salary - which is the starting point..for different categories...for instance one may decide that the senior management cadre would have the base salary of 40k to 60 k p.m. depending on grades.
C. Decide the allowances you would give for each bandwith - because this has tax implications and you have to strike a balance to attract talent..for instance give a vehicle allowance to senior management as they would have cars and it levies a tax of 10% as it has to have a arms length distance transaction and lease agreement in place etc.
D. Use excel sheet to link these break ups.
E. Lastly, suggest read up the Income Tax Act on the salaries.
Viola !! it's ready...
Hope this helps...
Cheerio
Rajat Joshi
From India, Pune
Hey..don't panic ..if you do ..you would find it difficult to do this task..
If you ask me frankly..its not difficult at all..there are a couple of things you need to do:-
A. The basic structure of compensation :- its available in this site with detailed break -ups and am pasting herewith.
The monthly payroll:-
Basic Salary
HRA ( 50% of Basic for 4 major cities & 40% for other cities)
Conveyance allowance Rs 800/pm (excess would be taxed)
Annuals given as reimbursement
Commissions/Incentives
Bonus
Child Education Allowance (better give as reimbursement to save tax)
Child Hostel Allowance (better give as reimbursement to save tax)
City Compensatory Allowance
Leave Travel Allowance ( same as basic allowance or two times for senior cadre- encashable only once in two years to save tax with supportings as per the income tax)
Lunch Allowance
Medical reimbursement to a maximium of 15,000/ (otherwise it will go in tax and to be given on pro-rata basis on submission of bills)
Newspaper allowance (better give as reimbursement to save tax)
Special Allowance
Gift voucher
Club membership (save tax)
Uniform Maintenance
Professional Enrichment Allowance
Entertaintment (Reimbursement) etc.,
Vehicle Allowance
Phone Allowance
Fuel Allowance (Petrol/Diesel)
Driver's Allowance
Mobile/Cell Phone Allowance
Internet Access Allowance
Academic/ Professional Membership Allowance
Night Shift Allowance
So pick and choose the ones which are suitable to your organization. The recent issue of FBTs would clarified by Finance Minister in Apr'04.
B.Decide the bandwith of the base salary - which is the starting point..for different categories...for instance one may decide that the senior management cadre would have the base salary of 40k to 60 k p.m. depending on grades.
C. Decide the allowances you would give for each bandwith - because this has tax implications and you have to strike a balance to attract talent..for instance give a vehicle allowance to senior management as they would have cars and it levies a tax of 10% as it has to have a arms length distance transaction and lease agreement in place etc.
D. Use excel sheet to link these break ups.
E. Lastly, suggest read up the Income Tax Act on the salaries.
Viola !! it's ready...
Hope this helps...
Cheerio
Rajat Joshi
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary working format.xls
Salary & Compensation Guidelines.zip