What is salary structure?
A salary range structure (or salary structure) is a hierarchal group of jobs and salary ranges within an organization.
Salary structures often are expressed as pay grades or job grades that reflect the value of a job in the external market and/or the internal value to an organization..
What is the basic salary in India?
Usually, basic salary is 40% to 50% of CTC (Cost to Company). Statutory components such as bonus, PF, gratuity and other benefits are determined on the basis of the basic salary. Any increase or decrease of basic salary can affect an employee’s CTC.
What is the formula to calculate basic salary?
What Is Basic Salary? Definition, Formula & Income TaxAnnual Basic = Monthly Basic X 12. Formula To Calculate Basic Salary. … Gross Pay = Basic + DA + HRA + Conveyance + Medical + Other. Hence, to calculate your basic from the gross pay you need to do the reverse calculation. … Basic = Gross Pay – DA – HRA – Conveyance – Medical – Other. … Basic = Gross Pay X Percentage.
What is fixed salary?
Fixed monthly salary = basic monthly salary + fixed monthly allowances. Basic monthly salary: This is payment that does not vary from month to month, regardless of employee or company performance, and regardless of whether the employee takes medical or personal leave. … Examples include fixed food and housing allowances.
How do you create a salary structure?
How to Establish Salary RangesStep 1: Determine the Organization’s Compensation Philosophy. … Step 2: Conduct a Job Analysis. … Step 3: Group into Job Families. … Step 4: Rank Positions Using a Job Evaluation Method. … Step 5: Conduct Market Research. … Step 6: Create Job Grades. … Step 7: Create a Salary Range Based on Research.More items…•
How is salary structure defined in India?
Components of Salary StructureBasic Salary. Basic salary is the base income of an employee, comprising of 35-50 % of the total salary. … Allowances. Allowance is an amount payable to employees during the course of their regular job duty. … Gratuity. … Employee Provident Fund. … Professional Tax. … Perquisites. … ESIC.