Hi All, We are a BPO providing processing services to US clients. We are currently revamping our structure as per the minimum wage. Can anyone help with a starting salary structure and what the components could be? Currently, we are providing a take-home of 23k, which includes their fixed salary, variable pay, and shift allowance. I believe the basic has to be at least 16k.
Kindly share your thoughts.
Thank you.
From India, Bangalore
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4Kindly share your thoughts.
Thank you.
From India, Bangalore
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Hi,
Based on the information you've provided, here is a potential salary structure for your BPO in Bangalore, considering the minimum wage in Karnataka and other components:
1. Basic Pay: 🎯 As you mentioned, the basic pay should form a significant part of the salary, ideally 40-50%. If we consider it at 50%, the basic pay would be Rs. 11,500.
2. House Rent Allowance (HRA): 🏠 This is typically 40-50% of the basic pay in non-metro cities like Bangalore. So HRA could be around Rs. 4,600.
3. Special Allowance: 🎁 This can make up the remaining part of the salary after considering all other components. In this case, it could be Rs. 2,900.
4. Shift Allowance: 🕐 If your employees are working in shifts, you can consider a shift allowance, which in your case is already included in the salary. The amount can vary based on the shift timings.
5. Variable Pay: 💰 This is the performance-based part of the salary and can be around 10-15% of the total salary. Here it can be Rs. 2,300.
6. Provident Fund: 💼 Both employer and employee contribute 12% of the basic pay towards the Provident Fund. So the PF contribution would be Rs. 1,380 each.
So, the new salary structure could be:
- Basic Pay: Rs. 11,500
- HRA: Rs. 4,600
- Special Allowance: Rs. 2,900
- Shift Allowance: As per company policy
- Variable Pay: Rs. 2,300
- Employer PF: Rs. 1,380
- Employee PF: Rs. 1,380
Please note that this is a basic salary structure and can vary based on your company's policies and employee's job role, experience, etc. Also, keep in mind that labor laws and tax regulations change from time to time, so you should always keep yourself updated with the latest rules.
I hope this helps you in restructuring your company's salary components. If you need further assistance, feel free to ask.
From India, Gurugram
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Based on the information you've provided, here is a potential salary structure for your BPO in Bangalore, considering the minimum wage in Karnataka and other components:
1. Basic Pay: 🎯 As you mentioned, the basic pay should form a significant part of the salary, ideally 40-50%. If we consider it at 50%, the basic pay would be Rs. 11,500.
2. House Rent Allowance (HRA): 🏠 This is typically 40-50% of the basic pay in non-metro cities like Bangalore. So HRA could be around Rs. 4,600.
3. Special Allowance: 🎁 This can make up the remaining part of the salary after considering all other components. In this case, it could be Rs. 2,900.
4. Shift Allowance: 🕐 If your employees are working in shifts, you can consider a shift allowance, which in your case is already included in the salary. The amount can vary based on the shift timings.
5. Variable Pay: 💰 This is the performance-based part of the salary and can be around 10-15% of the total salary. Here it can be Rs. 2,300.
6. Provident Fund: 💼 Both employer and employee contribute 12% of the basic pay towards the Provident Fund. So the PF contribution would be Rs. 1,380 each.
So, the new salary structure could be:
- Basic Pay: Rs. 11,500
- HRA: Rs. 4,600
- Special Allowance: Rs. 2,900
- Shift Allowance: As per company policy
- Variable Pay: Rs. 2,300
- Employer PF: Rs. 1,380
- Employee PF: Rs. 1,380
Please note that this is a basic salary structure and can vary based on your company's policies and employee's job role, experience, etc. Also, keep in mind that labor laws and tax regulations change from time to time, so you should always keep yourself updated with the latest rules.
I hope this helps you in restructuring your company's salary components. If you need further assistance, feel free to ask.
From India, Gurugram
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Karnataka Minimum Wages For The Year 2022-23 Final.pdf