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Revision of Salary Structure

Last post May 12, 2008 08:44 AM by Jim Watson. 1 repiles.
May 12, 2008 08:43 AM 1
Total Posts: 86
Join Date: September 26, 2006
Rank: Manager
Post Date: May 12, 2008
Posts: 86
Location: United States

Revision of Salary Structure

Dear friends

We are a software development company and status is 100% EOU with Pvt Ltd.
Our total employee structure is 80. I am working out for revision of our salary structure for our employees. We want to provide maximum benefit to our employees and less burden of tax. So we have decided to revise our salary structure.

Our current structure is as follows:

Base: 40% of CTC 40
HRA: 40% of Base
LTA: 8.33% of Base
Medical: 12% of Base
Conveneyance:800 Rs Fixed
PF: 24% of Base
Additional Allowance: 27%


Can I increase the format of base can it go up to 50% of CTC. Can anybody suggest the different head which will be under tax benefit

Please suggest

Priyanka
May 12, 2008 08:442
Jim Watson
Total Posts: 27
Join Date: September 26, 2006
Rank: Executive
Post Date: May 12, 2008
Points: 135
Location: United States

Re: Revision of Salary Structure

Dear Priyanka,

I would suggest NOT to increase the Base % as it will have consequential impact in the retirals (PF, Gratuity). Whereas, you may make HRA as 50% of the Base (to enable the employee to get maximum tax benefit) and reduce the additional allowance to 17% of the Base.

With best regards,

Jim
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