A Salary Structure for Business Enterprises which basically takes care of
1. Gross Salary – for Appointment Letter Purposes
2. Take Home Salary – for the Employee
3. Net / Gross Cost to the Company – for the Employer
4. Different Management Cadres – Junior, Middle, Senior, Top Management, etc. - for Hierarchy
5. Designation-wise Job Appointments based on Educational Qualifications & years of experience.
6. Incremental Slabs for appropriate rewarding at the time of Confirmation / Annual Increments.
7. It transparently tells the employees what to expect in terms of Employee Deductions and entitlements.
8. A salary structure imposes faith in the Management Policies.
9. The salary structure defines the growth path of the employee based on his performance.
10. As the organization grows, it is easier to manage complex issues as the parameters are set.
11. All Statutory Compliances are taken care of automatically as they are well-defined taking into account.
12. Department wise budgeting is possible as we know the Net. Gross CTC of each employee.
13. The accounts department knows what every employee is entitled to in terms off allowances and they can deduct excess amounts if any found over the entitlements.
14. The HR Process itself becomes system oriented, while you manage your core business activity.
Formulating a Salary Structures has many other benefits apart from the above. Each enterprise needs a different slab-rate depending on the business processes, type of personnel, etc.
We recommend that you formulate a Salary Structure for your Organization; it helps not only in the short run, but has immense positive effects in the long run. It tells the employee how to climb to the top and attain job satisfaction while you reap the benefits of his long association with the Company. Everyone in the core management group knows what each employee is paid and how much work to extract from him.
In case you decide to go in for structuring your staff salary, can properly structure one that is suitable for your enterprise.
Attached is a specimen salary structure prepared by us to give you a brief idea.
Pankaj
PS
1] Please note that PF has been calculated @ 12% taking into consideration the limit of Rs. 6500/- as the basic salary.
2] Please check the latest Statutory Changes in ESI / Profession Tax Slabs before finalising salary slabs for your organisation.
From India, Pune
1. Gross Salary – for Appointment Letter Purposes
2. Take Home Salary – for the Employee
3. Net / Gross Cost to the Company – for the Employer
4. Different Management Cadres – Junior, Middle, Senior, Top Management, etc. - for Hierarchy
5. Designation-wise Job Appointments based on Educational Qualifications & years of experience.
6. Incremental Slabs for appropriate rewarding at the time of Confirmation / Annual Increments.
7. It transparently tells the employees what to expect in terms of Employee Deductions and entitlements.
8. A salary structure imposes faith in the Management Policies.
9. The salary structure defines the growth path of the employee based on his performance.
10. As the organization grows, it is easier to manage complex issues as the parameters are set.
11. All Statutory Compliances are taken care of automatically as they are well-defined taking into account.
12. Department wise budgeting is possible as we know the Net. Gross CTC of each employee.
13. The accounts department knows what every employee is entitled to in terms off allowances and they can deduct excess amounts if any found over the entitlements.
14. The HR Process itself becomes system oriented, while you manage your core business activity.
Formulating a Salary Structures has many other benefits apart from the above. Each enterprise needs a different slab-rate depending on the business processes, type of personnel, etc.
We recommend that you formulate a Salary Structure for your Organization; it helps not only in the short run, but has immense positive effects in the long run. It tells the employee how to climb to the top and attain job satisfaction while you reap the benefits of his long association with the Company. Everyone in the core management group knows what each employee is paid and how much work to extract from him.
In case you decide to go in for structuring your staff salary, can properly structure one that is suitable for your enterprise.
Attached is a specimen salary structure prepared by us to give you a brief idea.
Pankaj
PS
1] Please note that PF has been calculated @ 12% taking into consideration the limit of Rs. 6500/- as the basic salary.
2] Please check the latest Statutory Changes in ESI / Profession Tax Slabs before finalising salary slabs for your organisation.
From India, Pune
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Creating a Competitive Salary Structure.doc
Salary Structure.zip